Wonder what you would find if you frisked Senate Majority Leader Harry Reid’s thoughts on the automotive industry bailouts?
Answer: He believes that Ford, which refused to take government bailout money, only survived because of the government bailout.
🙄 Hmm… How does that one work? Simple: It doesn’t.
In reality (not Harry Reid’s liberal dream-world), Ford did have the chance to accept government bailout money, but chose not to. Isn’t it interesting that the only one of the Big Three who didn’t accept government money is doing the best?
What would have happened if none of them accepted those taxpayer bailout dollars? The Blog Prof believes that the government’s interference in the process did more harm than good:
Without the bailouts, GM and Chrysler could have gone through bankruptcy restructuring without the 800-lb government gorilla on their backs. As it is, the bankruptcy restructuring occurred in a way to help Obama’s primary constituency – unions – rather than the long-term health of the companies. We are yet to see whether the restructuring will work, but if it does, it will be despite the government takeover, not because of it. There are in fact plenty of good people still working for the autos. I know because some of them have been my best engineering students.
And Ed Morrissey – from Hot Air – sums it up:
And don’t forget that we spent over $60 billion on those bailouts just to see the companies go into bankruptcy anyway. A proper bankruptcy would have maintained order in capital markets and reallocated resources rationally without the $62 billion in taxpayer money that we had to borrow for the bailout. As we service that debt, it will come out of the pockets of Americans who might otherwise have spent it on actual growth-producing activities — like buying cars.
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