Let GM Suffer

OK, I know I said GM should be allowed to fail, but that was my immediate reflexive reaction. They should be allowed to suffer, the executives and the unions alike, but something will have to be done.

I abhor the idea that a corporation is “too big to be allowed to fail,” because it means companies are motivated to grow by any and all means — past the point of economies of scale and into inefficient bureaucracy — as sort of an insurance policy. But seeing 100,000 jobs disappear overnight, rather than maybe 25-30,000 as would be needed for a reorganization, is unacceptable.

I like an idea I heard on NPR while I was sick in bed. Let Exxon-Mobil loan the auto makers the $25 billion. Why should it be the taxpayers floating Detroit? Washington should strong-arm the oil companies. Get tough and threaten to put the CEO’s in front of a Senate panel, under oath. Start asking about price gouging, and don’t let the dramatic drop in gas and heating oil prices soften the questions about windfall profits. Why not?

And if the loan ends up coming from Washington, there better be a lot of strings attached, take it or leave it. No compromise on new mileage standards, for example.

2 thoughts on “Let GM Suffer”

  1. Amen Sister Jeanie Beanie! This buyout would likely turn out to be like others-a windfall for the CEOs more than anything else. We already know the vehicles suck-that’s why they’re not selling! Why not make the US auto companies merge with the foreign companies that are selling cars and have plants here make the foreign cars. Make the CEOs use any bailout money to cover employee salaries and benefits only. Once the industry rebounds let the US CEOs go and goodbye US makers! The CEOs made enough money to comfortably retire many times over so the GOP doesn’t need to cry for their friends! The US auto CEOs are just like the US banking CEOs-looking out for themselves only and spending like a sailor on leave. GM donated a ton of money to the GOP, so let GOP rich backers, oil industry included, bail them out if they have to be kept. I say let ’em go!

  2. I caught the part when the CEOs were at the hearing and were asked, “How many of you flew in here on a regular commercial flight? Go on, raise your hands!” Not one did. They bought their ticket. I say, let ’em crash!

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