We shouldn’t throw good money after bad to prop-up companies failing from incompetence. Creative destruction is a powerful market force — the innovators rise to the top and take the place of stagnant companies.
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this is a land of mystery and wonder
We shouldn’t throw good money after bad to prop-up companies failing from incompetence. Creative destruction is a powerful market force — the innovators rise to the top and take the place of stagnant companies.
Comments are closed.
Maybe the thing to do is say maybe, not no.
We will give you money if you come up with more energy efficient cars, hybrids, electric, etc.
Make loans conditional, and have the government take a stake in the companies if they choose to drink from the public trough.
On the other hand, allowing automakers to go bankrupt will give them a clearer path to profit if they are allowed to be cut loose from strict labor contracts, pension and health agreements that are onerous.
That, and some new management with some foresight, vision and strategic thinking may go a long way towards fixing Detroit’s problems.