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Thread: bailouts = cheating?

  1. #1

    Default bailouts = cheating?

    For years, the complaint from the American steel industry has been that foreign governments give subsides to their steel producers, thus tilting the free market playing field.

    In other words, it's unfair for our private companies to compete with a government sponsored competitor who can produce the same product at a fraction of the cost.

    Doesn't the same now apply to the US automaker bailout?

    Many foreign car makers built plants here in the US which supply us with jobs.

    How fair is it to them that the US government is giving their competition a free boost?

    Am I missing something?

  2. #2
    Olympic Champ RYou's Avatar
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    Default Re: bailouts = cheating?

    Various governments gave the foreign car makers tax incentive benefits for locating the plant in their state / city. No difference here.

    The auto bailouts are merely buying time to stave off a significant dominoe board. Eventually, the US makers are going to have to reduce the number of brands they offer and change the direction of their marketing. The feds gave Chrysler $25 B back in the early 80's and it repaid the loan in under 4 years. Chrysler came back with a totally different perspective on the US car market. Today they are the healthiest of the 3.
    Life's not the breaths you take, the breathing in and out that gets you through the day ain't what it's all about. It's the moments that take your breath away.

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