Bailing Out Dinosaurs?

Should the US government throw $10 billion in *aid* at a merger of GM and Chrysler? Isn’t that akin to throwing good money after bad?

Should the US government be investing in companies who, by their own admission, made grave management errors, financial blunders and are having their lunch eaten by smaller, more nimble organizations who are better run?

Sure, let’s support behemoths who are stuck in the 1950’s with respects to the innovation of their products, and let’s forget about the impact that their product has on the environment.

I understand the need to protect the economy and jobs, not to mention the pensions of all the US workers who are employed by GM and Chrysler, but $10M could go a lot further and do a lot more good for the country as a whole if invested in new technology, or a new industry for these stranded workers.


Agassi will sell his battery-powered cars cheap and make money off drivers’ electricity purchases. Photo: Joe Pugliese

I bet Shai Agassi could use $10B VERY effectively and efficiently, completely changing the face of the automotive industry and the employees as well! Give the money to him, and watch the economic and environmental benefits ring up. Shai’s got a very innovative plan to roll out electric cars, but it’s his plan for the recharging infrastructure that’s going to be the boon in his plans.

Even if the US government attached some serious caveats to the bailout, such as only being able to use the aid for specified applications, that could enforce the directive to improving the employees’ lot in life. Just handing over a blank check to admitted *screwups* is not something the US taxpayer should have to undertake.

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