Thursday, September 25, 2008

Auto Makers Deserve Loans From Government. Not!

Today, I did a Diary on the proposed auto bailout on the Daily Kos. It didn't go well. The responses I got illustrated to me differences between liberal Democrats and libertarian Democrats.

Here are some of the arguments I got in favor of the bailout:

1) It was passed by congress. Of course, the Paulson Plan is before Congress as well. Also, I questioned whether it was passed in the light of day or slipped into larger legislation.

2) It's a loan, not a bailout. Of course, the AIG bailout is also a loan. And, according to William Gross, the Paulson plan is an excellent investment. I tell you what, I respect William Gross of Pimco more than auto executives about the financial viablity of their plans. Also, given that they've been losing money for years, one wonders why they would be smart enough to start making money now.

3) It will employ people. You've heard of too large to fail. Now we have too many jobs to lose. Of course, there's no guarantee these auto makers will deal fairly with their employees.

4) It's hard to get credit now. Of course, then maybe you should favor the Paulson Plan, and deal with the credit crisis first.

5) It will help the environment. This is rich. The auto makers have made a point of not preparing for more energy efficient cars, and they are now being rewarded by, in essence, blackmailing the taxpayers by saying we're not ready.

This is a bailout, pure and simple, for businesses that have thumbed their noses at energy efficiency, government, their employees, all the while being unable to turn a profit.

If liberals are for that, count me out.

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