As a follow up to one of my previous posts (Automakers Are Approved for 25 Billion in Loans), I wanted to post a link to this article from the Wall Street Journal commenting on the same topic from the perspective of a few weeks later.
Here's the link. Written by David Yermack, a professor of finance at New York University's Stern School of Business, the article says our government would make a better investment by cutting each employee a check instead of tossing money at a problem that is more than 25 years old. It's worth the read.
I understand all of his points--many of them based on the history at the automakers, but I admit, I have a sentimental attachment to these brands. After all, the popular cultural myth of Ford is made up of three parts:
- A car in every driveway
- The birth of the assembly line
- Paying workers enough to afford the cars
American history is closely tied to the automobile. The previous century is filled with changes that automobiles have wrought (both good and bad). Culturally, what would it mean if GM were allowed to fail? Would new technologies take the same place in the national psyche? What are your thoughts?