3 ms·
Yes, we could give a low interest loan (low relative to the risk of the loan) to GM. This might save some jobs and help the US economy. Or we could let GM fai
by Dilpil 18y ago
Yes, we could give a low interest loan (low relative to the risk of the loan) to GM. This might save some jobs and help the US economy.
Or we could let GM fail, and invest that same money in energy and biotech. Many would lose their jobs, but many more would get new jobs. These would be higher paying jobs, but also higher skilled jobs.
Lets not act like these loans are free. We should keep in mind that every dollar we loan to GM is a dollar we don't loan or invest in something else.
- anthonyrubin 18y agoI believe that a loan to GM would just delay the inevitable for a bit. Within a couple years they will be right back in the same situation. This seems obvious, but it makes the most sense to give money to groups that produce good results. I'm not sure what the logic is behind giving money to companies that fail to produce good results. I understand the emotion, but not the logic. That being said, I'm not in favor of any government bailouts. Removing risk from the market is a big part of what got us to this point.
- Alex3917 18y ago"We should keep in mind that every dollar we loan to GM is a dollar we don't loan or invest in something else." Don't pretend this is true, because it isn't, and to say otherwise is to be complicit in covering up a problem that's way bigger than whether or not we throw a couple bucks at GM.
- Prrometheus 18y agoWe could easily save jobs by bailing out every company that fails. But then the incentives for innovation and for making things that people want are drastically reduced. Even in years when the economy gains jobs on net, millions of jobs are destroyed and created. That's how progress happens. This used to be a country where over 90% of the population worked in agriculture, after all. Also, it should be noted that this is not the first bailout for US automakers. It is unlikely to be the last. We will have our own automakers that are wards of the state, producing cars that nobody wants to buy, just like Soviet Russia and Socialist India before us.
- ojbyrne 18y agoWhat's a low interest loan? Prime rate is 1%, and if GM can't get a loan at or near prime, there's a reason.