Detroit Bailout

Some sort of bailout of the Big 3 carmarkers appears inevitable, most likely in the opening days of the Obama administration, for reasons Jonathan Cohn lays out at TNR. With even Obama himself telling 60 Minutes that the package needs to be conditioned on an industry restructuring, talk is turning to what Congress and the new president should demand. There are many skeptics, such as Matt Yglesias, but the bottom line is this is going to happen. Two million unemployed is not a number Congress can ignore. Less obviously, Detroit still has a hand in making a good number of the military’s ground vehicles and I don’t see Congress being happy with the idea of outsourcing that job to Toyota, Honda or Subaru.

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One Response

  1. It really needs to involve some form of employee ownership. If we are concerned about protecting the workers, lets protect them and not just shovel money at the people who made this mess in the hopes that they’ll act in the workers’ best interest.

    I won’t go on, but there’s more info on this idea at my blog.

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