A different view point on the Chrysler situation from an investment industry biggy Scott Sperling: Obama's Auto Plan Is Capitalism at Work,
Without a drastic restructuring neither Chrysler nor GM would have a chance for long-term success. Not only would thousands of workers lose their jobs, but the government would lose tens of billions of taxpayers' dollars. So rather than simply writing a check to the auto industry -- the policy of the previous administration -- the Obama team is focused on fundamentally restructuring these two businesses.
We can all agree with this statement but Mr. Sperling comes at if from the wrong direction. The Government (Bush and Obama) should never have gotten involved in the first place. The companies have been in financial trouble for years now. Expensive labor costs, a poor understanding of the market and government meddling have led both companies to lose market share. Time for restructuring was due a decade ago and if a few thousand UAW union members lose their jobs so be it. Likewise those at the top that managed to lose site of the ball should have been tossed out years ago. Also, giving Obama credit for causing the mess in the first place is unwarranted. It is kind of like a criminal shooting someone then wanting credit for calling the ambulance.
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