The above link takes you to an Op-Ed piece by David Brooks regarding the government bailout of General Motors. I have an opinion about that. Brooks says that GM has been in the process of restructure for the last 30 years. I wonder if that is akin to the situation of buggy whip manufacturers when automobiles came into common use.
If the company hasn’t developed a plan in 30 years for long-term viability, will a few more months of government intervention make a difference? GM is a huge employer and supports a huge number of retirees. Bankruptcy impacts a tremendous number of people. I don’t like that, especially because older retirees don’t have the resources to replace health care benefits.
At the same time, I don’t think the US government is qualified to operate a car manufacturing corporation. Nor is it the function of government to operate and try to compete with the business world. Government entities have a hard enough time running their own sectors.
Perhaps the focus of government intervention should be on retraining current automobile workers and somehow shoring up the negative impact of bankruptcy on GM retirees.