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What would happen if the US government let GM fail?
- Thread starter Sean
- Start date
N
naughty monkey
Guest
GM and some other big buisnesses recently got bailed out by the government because they were "Too big to fail". I understand that if they failed, the economy would be in complete turmoil and several people would be out of work, but shouldn't we let that be a lesson to those companies, to not make the same mistakes as they made before? No one got bailed out after the great depression and we arose to be an even greater stronger country after WWII.
It just seems to me that the bail out is just a Band-aid and GM will not learn from its previous mistakes of letting unions have too much power, being too top heavy, ect.
What do you think?
It just seems to me that the bail out is just a Band-aid and GM will not learn from its previous mistakes of letting unions have too much power, being too top heavy, ect.
What do you think?
Do your thing
New member
It would reorganize and become profitable. The unions would be told to take a hike.
Can't allow either of those to occur if you're a far left winger.
Can't allow either of those to occur if you're a far left winger.
piegowdealer
New member
Yes we should have let those wall street banks fail too.
GM will fail and the workers will suffer.
But it was a tactical move, like The Alamo, Goliad, Thermopalye, Mosada, a fight you know you are going to lose, but you fight to the last man to buy your country time to win the war.
The great depression would have been over much sooner if FDR had not been such a capitalist.
GM will fail and the workers will suffer.
But it was a tactical move, like The Alamo, Goliad, Thermopalye, Mosada, a fight you know you are going to lose, but you fight to the last man to buy your country time to win the war.
The great depression would have been over much sooner if FDR had not been such a capitalist.
piegowdealer
New member
Yes we should have let those wall street banks fail too.
GM will fail and the workers will suffer.
But it was a tactical move, like The Alamo, Goliad, Thermopalye, Mosada, a fight you know you are going to lose, but you fight to the last man to buy your country time to win the war.
The great depression would have been over much sooner if FDR had not been such a capitalist.
GM will fail and the workers will suffer.
But it was a tactical move, like The Alamo, Goliad, Thermopalye, Mosada, a fight you know you are going to lose, but you fight to the last man to buy your country time to win the war.
The great depression would have been over much sooner if FDR had not been such a capitalist.
B
Barry's Stimulus Plan
Guest
You are absolutely correct. "Personal Responsibility" is the thing that needs to be bailed out in this country. If a company makes lousy decisions that company should suffer the consequences
bluechristy
New member
Americans workers would lose their jobs then their homes . You know there are only so many wage slave jobs available after that .But cons have never seemed to care about that . Or the American people as a whole .
It certainly would teach them! On the other hand, unemployment would have risen to 15%, because not only would all the auto workers lose their jobs, but also the companies which manufacture parts, the waitresses who work at the local diner that unemployed people could no longer afford, the retail stores that the unemployed could no longer afford to shop at, and a multitude of other sidelines to the auto industry.
Companies were not bailed out after the Depression hit, but people were. See WPA, CCC, etc. Millions were spent building infrastructure. Because the health of an economy depends on the lower classes who spend the money to support it. Do away with their income and the rich simply cannot spend enough to keep things going.
Companies were not bailed out after the Depression hit, but people were. See WPA, CCC, etc. Millions were spent building infrastructure. Because the health of an economy depends on the lower classes who spend the money to support it. Do away with their income and the rich simply cannot spend enough to keep things going.
D
Did I do that
Guest
The new company name would be????
They would file for bankruptcy and not pay their bills. Similar too what they are doing right now.
Whats funny is, that in bankruptcy, they would not have had the power to lay off and force retirement, against so many UAW employees. 0bama sold his supporters out. Although few line workers will admit that.
They would file for bankruptcy and not pay their bills. Similar too what they are doing right now.
Whats funny is, that in bankruptcy, they would not have had the power to lay off and force retirement, against so many UAW employees. 0bama sold his supporters out. Although few line workers will admit that.
Dingo Warrior
New member
Being bankrupt isn't the same as failing. The government did nothing to prevent K-Mart's bankruptcy, and they came back so strong they bought Sears.
K-Mart had to cut their losses, fire their CEO, close many stores, but they survived and thrived. Donald Trump thinks the same would have happened to GM had the government left them alone.
K-Mart had to cut their losses, fire their CEO, close many stores, but they survived and thrived. Donald Trump thinks the same would have happened to GM had the government left them alone.
clean truck
New member
The bail out "was" for the unions, why else would barack insane obama give part ownership to the unions while stealing the company from it`s stockholders.
For all practical purposes, GM has already failed. It should now be allowed to do so formally.
We must not be afraid of the bankruptcy process. Bankruptcy does not mean liquidation. The process will help the company, not eliminate it. It would give GM the cover to do what it absolutely must: close plants, eliminate unprofitable brands and dealerships, and shed its bloated cost structure. It will enable GM to wipe the slate clean and emerge stronger. Going forward it will be able to compete again, without the inspissating heavy burden of past obligations.
Subsidizing the industry is not going to solve the root of the problem, but will simply mean perpetuating an unproductive structure, which will almost guarantee bigger problems later on. Why should we transfer capital from the successful businesses to the doomed? Throwing taxpayers' good money into that sink hole called the US auto industry will be tantamount to a transfer of wealth from tax payers to GM employees. The capital that will be consumed by GM is needed elsewhere, perhaps for re-training people to make them more employable, and could be used more efficiently if not allocated by Congress or the bureaucrats at Treasury.
In capitalism, the consequences of failing to compete are that you vanish, making way for more efficient organizations. That is how the economy rejuvenates itself.
Let GM fail.
We must not be afraid of the bankruptcy process. Bankruptcy does not mean liquidation. The process will help the company, not eliminate it. It would give GM the cover to do what it absolutely must: close plants, eliminate unprofitable brands and dealerships, and shed its bloated cost structure. It will enable GM to wipe the slate clean and emerge stronger. Going forward it will be able to compete again, without the inspissating heavy burden of past obligations.
Subsidizing the industry is not going to solve the root of the problem, but will simply mean perpetuating an unproductive structure, which will almost guarantee bigger problems later on. Why should we transfer capital from the successful businesses to the doomed? Throwing taxpayers' good money into that sink hole called the US auto industry will be tantamount to a transfer of wealth from tax payers to GM employees. The capital that will be consumed by GM is needed elsewhere, perhaps for re-training people to make them more employable, and could be used more efficiently if not allocated by Congress or the bureaucrats at Treasury.
In capitalism, the consequences of failing to compete are that you vanish, making way for more efficient organizations. That is how the economy rejuvenates itself.
Let GM fail.