Serious Risks Involved In Auto Bailout

December 9, 2008

Washington D.C. (ChattahBox) – With a steadily worsening economic situation, and more and more people becoming desperate as companies lay off workers and risk closing all together, the government is officially considering negotiations with automakers to create a bailout plan that would potentially save jobs and allow of further manufacturing.

However, that help could come with a price, and with further demand for greater government oversight after the disgusting actions of AIG, debates on the possibility of nationalization are becoming a hot button issue for the first time since the Korean War, although President-Elect Barack Obama denies it will come to that.

“We don’t want government to run companies,” Obama promised during an interview with Tom Brokaw. “Generally, government historically hasn’t done that very well.”

Whether or not we can risk another bail out without federal oversight, an idealistic action that has already crashed and burned when out into practice so far, is yet to be seen. But the thought of nationalizing companies that were made private to stop heavy government involvement is an idea that has appalled many.

“If Japan was doing this, we’d be threatening billions of dollars in retaliation,” said Professor Jeffrey Garten of the Yale School of Management. “In fact, when they did something a lot more subtle, we threatened exactly that.”

It can’t be denied that the proposal coming from Washington is much more extreme then Americans expected, and the long term consequences could lead to a major reform in how businesses are managed, but the lack of outcry from a country usually terrified of measured that could fall under the heading of ‘Socialist’ speak more loudly in their silence then words ever could. We are desperate, and out view of the world and of matters of government seem to be changing as the country falls apart.

But no matter what your opinion, or what they decide, one thing is certain: this is a time of crisis that needs dramatic change if we are to come out of it with any likelihood of survival. And government oversights or not, our decisions to meet that end have become alarmingly limited.


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