After considering the impacts to the economy in lost jobs throughout the country and immediate cost, I would still not bail out the failed US auto industry.
In my opinion, we simply cannot. The budget models utilzed by these organizations have failed miserably for years- even with the pre SUV, and truck sales by the Big 3 over the last few years. The UAW has raped the industry also for years. My father worked for years in the Local 701, I know. I believe that the unions in their inception were wonderful and did some very good things for workers and the nation but like most good things, became corrupted and no longer served to it's intent.
This is a capitalistic nation built upon the ideas of a free, entreaprenarial spirit. If these businesses fail, (I personally do not believe that Ford will fail -they have cash to weather the storm and are leveraged better than GM & Chrysler ) what emerges over time will be another American car maker to fill the void. If there is a need, someone will rise to fill it. Other automobile manufacturers have failed in the US.
There are other geo=political concerns. I personally do not like the government running our banks and other financial institutions and now the proposed auto industry-certainly not under the Obama White House and Democratic legislation. What's next and who is next for a bail-out? (take-over) The US retailers are reported to remain a shell of their former selves from what I am reading, following the expected dismal sales from this holiday shopping season. Does the government take them over as well? Where does it stop?
Watching the senate and house subcommittee hearings over the past couple of days I was struck with bewilderment at Ford's CEO Alan Mulally and GM's CEO Rick Wagonner's refusal to consider giving up their combined 35 million dollar compensation packages when pressed by Illinois Republican represenative Peter Roskam. They flew to the hearings in personal corporate jets and were chided by the House for not "down grading" to First class flights. The apparent disconnect of these men that are/would be in charge of any bailout plan is nothing but disconcerting.
Rick Wagonner could also not provide any form of a straight answer to exasperated Rep members as to how much in total GM would require in funds to remain solvent in the long haul (after making comments that both the earlier 25 billion in aid to further advance fuel efficient technology combined with the current 25 billion proposal may not be enough)
Your indistry has been in the toilet for years but you cannot provide a budget model for your own company financial rescue?
From what I am reading, Obama can (probably will) award the bailouts without going through Congress. (If GM can remain that long) Bush has maintained a firm veto for any bailout plan to the auto industry which crosses his desk.