Comment & Debate
Daniel J. Mitchell. “Commentary: Say no to the auto bailout”. CNN. 13 Nov. 2008 – “A bailout will encourage other industries to seek taxpayer handouts. The Wall Street bailout was a disaster in many ways, most notably as measured by the weak stock market and economic volatility. But another negative aspect of the bailout is that other industries have now decided that it is OK to stick their snouts in the public trough, as well. […] First Wall Street’s high fliers get a bailout. Now the inefficient management and union at the Big Three want a handout. Who will be next in line to pillage taxpayers? Giving handouts in exchange for political support is akin to getting high. Once politicians decide they like the buzz of campaign contributions, they’ll turn into junkies with ordinary Americans footing the bill.”
“Saving Detroit”. Economist. 13 Nov. 2008 – Bailing out Detroit would be a bad use of public money. It would be bad in principle, because it would be an open invitation to companies everywhere to apply for aid to survive the recession.
David Brooks. “Bailout to Nowhere”. New York Times. 18 Nov. 2008 – “A Detroit bailout would set a precedent for every single politically connected corporation in America. There already is a long line of lobbyists bidding for federal money. If Detroit gets money, then everyone would have a case. After all, are the employees of Circuit City or the newspaper industry inferior to the employees of Chrysler?”