GM Forever

by

A little more on the auto bailout.

  1. Yglesias is spot on in this post
  2. The argument is not about saving a huge job creation engine, aka GM.  That horse is already dead.  The bailout just keeps it from hitting the ground.
  3. Bailing it out keeps resources flowing to a brain dead company that hasn’t had a serious original idea in decades, rather than to one (or many) that can seriously innovate.  By serious I mean things like hybrids, quality in small cars, safety frames, i.e. things that other companies were created or resurrected by.  I don’t mean phony hail mary passes like the hydrogen car (where did that go by the way?  Didn’t GM Management swear just a few years ago that they were really really serious about investing in the hydrogen powered car as their future.  Remember, that was the reason we didn’t legislate increased fuel economy – it would only distract them from that “bet the company” endeavor), or the Chevy Volt ($50K plus for something that looks like a Cobalt, accelerates like a Vega and probably drives like Grandma’s Buick?).  And I don’t mean stupid moves like the “Factory of the Future” (We’re not going to learn how to use the technology first, we’re just going to throw billions of dollars into doing it all at once.  It’s like the guy who thinks he’ll try a little home handyman stuff for the first time in his life and immediately sets out to re-wire, re-plumb, redo the kitchen and bathrooms, and move all the load bearing walls, and by the way, he’s never so much as painted a wall before.

The pro-bailout faction keeps coming back to the idea that it’s too big to let fail, but hey, GM HAS ALREADY FAILED. What you’re proposing isn’t a bailout, it’s a 40 billion dollar remake of “Weekend at Bernies”.

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