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These companies dug their own graves in the early aughts and then the American government used taxpayer money to dig them back out again. They never learned to
by Causality1 8y ago
These companies dug their own graves in the early aughts and then the American government used taxpayer money to dig them back out again. They never learned to adapt because they can count on the government to be their nursemaid and their attack dog, in the form of tariffs and laws against upstarts like Tesla.
- pureliquidhw 8y agoWell, GM held quite a few jobs (and industries) hostage. They had little IP worth buying, as they were already re-badging Australian and European cars. The latest Saturn's were Opel's. Pontiac's were Holden's. Down economy made it seem like no one would ever buy a truck again and Toyota had already proven their trucks were as good or better. If GM wasn't bailed out, they would have failed HARD. Like, plant closes, which means in that town restaurants close, doctors offices close, tax revenue drops so public sector jobs suffer, suppliers no longer have someone to supply, so they cut back. There would have been a massive ripple effect in an already awful time. Don't forget about the rampant middle class foreclosures, middle class homelessness, college savings lost, etc. 2008-2010 was really bad. Also, it was a loan that GM was able to repay and gov't made money on the deal on top of continued income tax payments from all the people who remained employed and off unemployment.
- Causality1 8y agoThat outcome was not guaranteed. They could have failed anyway and it would have been twice as bad.