Not bailing out either of these institutions would have had disastrous consequences for our already devastated economy. It would have resulted in a crisis of faith similar to losing faith in the banking system, as is what happened during the Great Depression.
Certainly there could be a debate over whether any firm, regardless of industry, deserves a bailout. But, once you have decided financial firms can get bailouts, then that should not preclude any other industry. These are tough choices that can only be made on a case by case basis, because a set of criteria known beforehand would lead to a moral hazard.
With the thousands of manufacturing jobs already lost in the last 20 years, we do not need to suffer through hundreds of thousands of even more unemployed workers. On top of that, while the automobile industry wasn't run well, at least they weren't deliberately dishonest, like the financial industry was. Incompetence and deception is worse than just incompetence.
I think all companies should have to stop giving their higher-ups the crazy money they are paid, but on the other hand these companies support a lot of families with their factory jobs. Two people in my family work for GM and they need the jobs in these hard economic times.
Large corporations should not be entitled to any sort of bailout. These corporations have made millions, if not billions, of dollars. They have the resources available to prevent such financial circumstances from happening in the first place. These companies need to have checks and balances to make sure that these situations do not happen.
The banks should not have, under any circumstances, received bailout money at all. The way the economy is set up in the U.S. is, those who are wise and know how to manage their money, will be successful. If they try to cheat, it will catch up to them. Same thing with the auto industry. They do not deserve a "get out of jail free" card, especially since it is the unions that are dragging them down. If anything, the removal of the unions would save the auto industry more then anything.
A series of financial firm failures, if it overwhelms the FDIC, means people lose their life savings, insurance policies, and retirement accounts. If the financial backstop of the government is overwhelmed, people become impoverished in an already poor economy, when the social safety net is already frayed. The financial firm bailouts ensure solvency of pension plans as baby boomers retire. These are the savings of millions who must live on it when unemployment runs out, or emergency funds for those facing wage cuts. The financial bailouts were unfortunate, but necessary. Car companies do not deserve bailouts. One car company's failure hurts those thousands of employees. A major financial firm failure that overwhelms the FDIC hurts millions who have no fallback. The bloated over-unionized car companies should fail.
I do not understand why anyone was given a bailout in the first place. The banks shouldn't have gotten one, and the car companies shouldn't get one either. Every person or company should be held responsible for their choices.
I do not see the fairness in providing a bailout for some companies and not others, and not average people. We all make the same kinds of decisions and should have to pay the consequences.
The American automotive industry has been under-performing for many decades. If these companies were not bailed out, they would declare bankruptcy. Other companies would buy up the assets and rehire former line workers. Also, their union contracts would become void, preventing future problems with greedy unions. Supporting failing industries that are stuck in monstrous union deals should be dealt with by dissolving those deals.
No, automotive manufacturers should not be entitled to the same bailouts as financial firms because we should never have bailed them out in the first place and government should never be involved in any private industry. Let companies fail, that is why we have bankruptcy laws. We can't bail out every company that fails, it leads to more special interest problems and favors to certain companies. If companies can't afford to stay in business because of their own ineptitude and bad planning in regards to pensions and salaries than they have no right being in business in the first place.
Automotive manufacturers, namely GM, have shown over the past 20 years that they don't know how to make cars that people want to buy. If they can't make a profit on their own, they should be allowed to go away. Unlike the financial bailout, the fate of automotive manufacturers doesn't necessarily affect the world economy. Mostly, their fate affects the workers and the unions. Unfortunately, like any other business, there is the risk of bankruptcy.
Bailouts are to be avoided in regard to the automotive industry because it will do nothing to discourage the sort of practices that led to it's problems. If automotive companies are failing they should simply be allowed to go bankrupt or reorganized into leaner, more productive organizations. There is little reason to believe that the bailouts will be of substantial benefit to American citizens or their economy. Far better to have spent that money on public works programs that would have put US citizens to work.
When will the citizens be bailed out? Why is it considered somehow immoral to provide for the welfare of citizens but quite alright to give tax money to companies, whether they are car manufacturers or banks. I find this is quite disturbing; it is the citizens who deserve some help in all this financial mess. Companies have through their own greed caused their own downfall. Why are we giving them money?
When financial institutions find themselves in huge trouble, it is our money that is at stake. If the government has to step in to help, it's to save our money even if it means they have to use our tax dollars to do so. Automobile companies, from the top executives to the factory workers can take cuts across the board and greatly reduce their financial troubles. Banks can do this too, but there has to be money in the banks, because it belongs to us.