Bailout Dies, Sending The Right Message

Yea, for now. In the auto industry’s economic troubles, or rather, the Big 3’s economic troubles, opportunities abound. Resisting the knee-jerk reaction to ‘rescue’ the Big 3 by simply throwing good money after bad, it is time to turn the lemon into lemonade by showing the socialist world how free-market economies recover from setbacks without government intervention. The path toward regaining profitability is through procedures called a Chapter 11 bankruptcy. Companies that can successfully reorganize and restructure will rescue themselves and all the jobs that go with it. And to the survivors go the rewards. Rewards to consumers, auto workers, stockholders, and the companies themselves.

Proponents, including the outgoing and incoming Administrations, of the misnomer of a process called a bailout, are saying that a bailout is necessary in order to avoid a disorderly bankruptcy process. They say this with a straight face, as though a government takeover, a nationalization, auto Czar and all, of the auto industry, including new rules on what kind of cars they have to make, will be an orderly and fiscally responsible action. A responsible action is one that gives the Big 3 a chance to reorganize into a company that can make a profit again. The ‘bailout’ plan is nothing more than a nationalization of a failing business model with taxpayers footing the bill with no end in sight.

Today, the Senate did the right thing by sending the right message to the White House,the Big 3, and the UAW.