Many economic analysts are talking about the possibility of the US government bailing out GM and other US automakers. Since I already think cars figure too dominantly in our society, of course I have something to say about this...
For starters, it's worth noting that, yes, I'm concerned about what will happen to anyone whose income is related to the auto industry. Maybe an aid program for the workers could work, or maybe there's another solution, but the people are my only concern.
Other than that, the government really shouldn't bail GM out. Why are they in this predicament in the first place? Part of it is due to a fat pension responsibility. Other than that, GM's issues seem to be related in part to enabling our society's desire for excess. To my understanding, GM has more oversized cars than anyone else. SUV's and huge trucks had been their best sellers. Yet, they failed to see the writing on the wall that demand would shift toward smaller, more economical cars. Smart cars and Minis are seeing huge demand.
Also, GM failed to keep the weight off. They've trimmed the fat so many times, but continue to put it back on. By contrast, Toyota has been long admired for their lean organization. And yes, they are fairing much better than the US manufacturers.
So, what to do? I think it's time for the government to make an example of someone. We've had so many bailouts that companies practically expect it. Let GM sell itself off in pieces to fund its pension obligations. Then, take the money that would have bailed them out and use it to finance public transportation improvements and alternative energy. How about that?
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