Nearly 30 years ago, a bankrupt Chrysler Corporation successfully petitioned Congress for a $1.5 billion loan package. Government’s reasoning: “There is a public interest in sustaining (Chrysler’s) jobs and maintaining a strong and competitive national automotive industry,” according to then-Treasury Secretary G. William Miller.
Trouble is, the taxpayer-funded bailout only helped to prop up a bad business model plagued by uncompetitive policies. Rather than let Chrysler fail and allow it to restructure into something more viable under a Chapter 11 bankruptcy, Congress intervened and enabled the company to stammer along.
Now, Chrysler, along with GM and Ford, are back petitioning government for another round of tax dollars. And, once again, Congress is intent on saving these failed companies. But taxpayer money isn’t going to solve the auto industry’s problems of today anymore than it solved the auto industry’s problems of yesterday. It’s only going to prop up mismanaged companies.
Even in spite the automotive industry’s poor track record, Fox News is reporting that Congress is likely to pass a bailout package worth between $14 and $17 billion later this week. Their reasoning…”our nation’s automobile industry – the heart of our manufacturing industry – and the jobs of tens of thousands of American workers are at risk,” according to House Speaker Nancy Pelosi and Majority Leader Harry Reid.
Sounds like a broken record.
Congress needs to be reminded of Albert Einstein’s definition of insanity: “doing the same thing over and over and expecting different results.”
– James Quintero