Why should the government bail out the big three?
they clearly do not have any short or long term plan to compete with Japanese or German automakers to stay alive. American economy is certainly not going to get better any time soon. I'd have to say even with 25 billion dollars, with today economy, there'll probably be more bad loans and repo which in terms will cost the bank anyway. It is a wicked cycle that won't stop until the American public economy is stable again.
- 1 decade agoFavorite Answer
Screw the Big Three. They don’t know what they are doing. Even if they come out with an electric car or a new hybrid nobody would buy it because it has the Ford or Chevy logo on it, which nobody trusts and buyers associate with lower quality. If we are going to give anyone the 25 billion to jump start our auto industry I say give the money to a company with a world renown reputation for producing futuristic and technically innovative products that everyone wants to buy. Products that raise the bar for all competitors in the market. I say give the 25 billion to Steve Jobs to make an iCar. You know people all over the world will be waiting in line to buy one!
- LolaLv 61 decade ago
The big problem with the big three is that there are literally thousands of smaller companies whose livelihoods depend on selling their products to the big three. So if they go down, so do thousands of other companies. Which boils down to tens of thousands of other people out of work.
The gov't should not have allowed the oil industry to bankrupt the American people over the past 2 years. I say make them take their obscene profits and bail out this country. The gov't also needs to step in and force the banks to stop usury. Between the outrageous interest rates and trying to keep up with inflation and the cost of gas, most of us are hanging on by a fraying thread.
- 1 decade ago
There is really no point to bail them out. There going to end up laying off workers with or without the money because nobody is buying cars, partly due to the credit crunch but id say largely due to lack of consumer confidence. If people would just go do the American thing and spend money we wouldnt be in this mess.Source(s): my professors
- You may be rightLv 71 decade ago
They shouldn't, some companies make good decisions and some bad, it's not fair to reward companies for making bad decisions, even though I would hate to see them go out of business.
Same with the housing problem, some worked hard and did it right and got into trouble, and some knew they couldn't afford to buy a house, but did it anyway, so why reward people that do wrong.
I do right and I have nothing, so it's fair to help those who did wrong, so they can keep having more and I still have nothing.
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- Anonymous1 decade ago
The should not be bailed out the should file bankruptcy reorganize and break the stranglehold of the big unions. These unions make it impossible for America to compete in the world market, their time is over get rid of the under worked and overpaid auto workers and their unions.
- BlahLv 61 decade ago
They shouldn't. As the child of 2 GM retirees, I think it's time to pull the plug. If they make it on their own after restructuring in bankruptcy court, so be it, but it's not likely.
Americans make good cars, but for the options and the prices, they've made too many poor choices. The unions haven't helped, but they're not the sole reason for the demise.
- 1 decade ago
Because Bill Gates is greedy and won't help out the economy so we the tax payers have to bail them out to save the economy.
- YourLaHireLv 61 decade ago
I do not see why the government should bail them out? I am trying to figure out where millions of people stand to lose their jobs. Businesses go under everyday and no one cares about them. I do not feel I owe anyone retirement and pension. Let the unions come together and bail out the monsters that they have created.
- Anonymous1 decade ago
They didn't bail out the airlines when they all went into bankruptcy after 2001. Bankruptcy restructuring helped them, it will help the Big 3 too.
- ?Lv 51 decade ago
They shouldn't. They should never have bailed out Wall Street. Now we have a line a mile long and everyone has their damn hands out!