http://abcnews.go.com/Business/wireStory?id=6296266
This story has been on the news a few times now and definitely caught my attention. In Detroit, 3 big, well-known, automakers are asking the government for a $25 billion bailout for the auto market claiming if they don't receive it they will have to declare bankruptcy by the end of the year. One side of this argument is, these companies employ millions of people whom would all lose their jobs without the bailout. There are also many jobs related to car sales and without these major car companies, the selection to purchase would be very slim.
On the other hand, if the government bails them out, who will be asking for a bailout next? Should the government have to bail everyone out and put our country in even greater debt? Also, how did these companies get in such bad shape? They were giving signing bonuses in large sums and if they were in such bad condition, they should have known not to hand out cash unnecessarily. There should have been job cut backs, lay-off, etc. in order to keep their companies functioning. These corporations became large enough without help from the government so they have to know how to run a company, what happened to make them fall under? Is this really the economies fault, or is it the car companies' fault?
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3 comments:
I completely agree with Megan's comment above. I really would not know what to do in this sitaution because you do not want these huge companies to fail, however $25 billion is a lot of money and once they were to give it to them, who knows what other companies would be asking for it next. I think it is partially the economies fault and partically the auto companies fault for giving out to many bonuses and handing out money freely. This is a very difficult decision to make and I am unsure what the best solution would be.
With the economy being so bad lately, it is putting many companies in debt. The government has already thrown out a lot of money towards bailouts, but if they bailout this company, soon everyone will be asking for help. The auto company harmed themselves by throwing out the amount of money they have. If they don't get bailed out soon, it could result in a huge loss for the business
I think the 3 big car companies do have to get bailed out cause there are thousands of jobs that could be lost if nothing is done by the government. The bailout that just got passed for 15billion dollars i believe is a step in the right direction
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