economics, government

Let Detroit Go Bankrupt

Mitt Romney is getting a lot of good press for his brave NY Times article Let Detroit Go Bankrupt:

IF General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won’t go overnight, but its demise will be virtually guaranteed.

Without that bailout, Detroit will need to drastically restructure itself. With it, the automakers will stay the course — the suicidal course of declining market shares, insurmountable labor and retiree burdens, technology atrophy, product inferiority and never-ending job losses. Detroit needs a turnaround, not a check.

Mitt Romney at the 2008 North American International Auto Show in Detroit
Mitt Romney at the 2008 North American International Auto Show in Detroit

A Time magazine blogger wryly advised Mitt Romney For Auto Industry Czar*.

Here’s the HEADLINE: Big 3 take own jets to grovel for cash

(L-R) Chairman and CEO of General Motors Richard Wagoner, Chairman and CEO of Chrysler LLC Robert Nardelli and President and CEO of the Ford Motor Company Alan Mulally
(L-R) Chairman and CEO of General Motors Richard Wagoner, Chairman and CEO of Chrysler LLC Robert Nardelli and President and CEO of the Ford Motor Company Alan Mulally

Who’s advising these fat cats?

They did not foresee that flying in a private jet, begging bowl in hand, would be the headline?

No wonder the Big 3 are dying.

Lee Iacocca would not have made this mistake.

2 thoughts on “Let Detroit Go Bankrupt”

  1. I am SO in agreement with you on this Rick. It seems that these folks gouge and screw to get obscene profit margins and bonuses and then when markets slow down they want to be funded by tax dollars.

    I am an owner of a manufacturing plant and by gawd if things turn down(and I expect they will), I sure as h-e-double hockey stick don’t expect any handouts.

    I say let them suffer, learn, fail or survive!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.