Monday, Nov. 17,2008 8:17 p.m.
Those who feared a precedent from the recent financial sector bailout can now say they told us so.
Detroit automakers, specifically GM, Ford and Chrysler are asking for
some $25 billion to keep them from going bankrupt within the next six
months.
They might fail without the money, but that doesn’t mean we should give it to them.
The problems with America’s auto industry are not rooted in the
financial crisis, although the recent recession has certainly
exacerbated them. No, these companies have run themselves into the
ground through their refusal to innovate.
Overbearing union contracts and government guarantees have made the big
three bloated and inefficient. They have been shedding jobs for a long
time, in both good times and bad, even while foreign competitors were
expanding all over the United States
.
In fact, the new auto manufacturing facilities that have popped up in
Indiana have not come from Detroit but rather the foreign-based Toyota
and Honda.