Or at least, so says this year’s Nobel laurelate in economics. This despite a $15 billion life support program that is being thrown its way, despite the vehement objections of the voters, this blogger, and the dictates of common sense.
This lets me add another argument to the reasons why we should not bail out Detroit (as if we needed any more): it’s throwing good money after bad.
The consensus seems to be that Chrysler is already Dead Man Walking, that Ford will survive regardless. So it’s all about GM.I think if you believe in capitalism you have to let GM go. I don’t believe the entire US auto industry is necessarily doomed — Ford isn’t exactly a lemonade stand. And it is possible for new companies to rise in the ashes of the old. Ten years ago no one in this country had heard of Hyundai. Death and rebirth. I think we should take a deep breath, extend unemployment benefits, and let GM go.