Monday, October 15, 2012

Bailout of the auto industry:

True, GM and Chrysler are still alive and kicking, but I'm not certain that it was the best way to have proceeded.  Under Mitt Romney's proposal (that they just let the companies go into bankruptcy proceedings), it's my understanding that such would have lead to a resturcturing of the car companies. Employee salaries, health costs, and retirement costs, all would have been renegotiated.  Typically such would have lead to an even stronger finanical position - and sounder position from which to go forward, than what curently exists under the Obama bailout scenario - which made protecting the benefits of union workers as the priority (vice the financial health of the companies).   As with Obama's bailout, employee jobs would have been saved unders Romney's plan as the revitalized companies came out of the bankruptcy proceedings.

Under Romney's recommended approach, not only would the companies be in a stronger position going forward - and employee jobs saved, but the government wouldn't be out $20 billion dollars that Obama's bailout cost.

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