Congress will be voting shortly on a proposed $15 billion bailout for the Big 3 automakers. The result ought to be a resounding no. If the government saves the heavyweights of the auto industry, how can they say no to industry leaders that get in trouble in other markets?
The scope of the failure of the auto industry clearly extends beyond that of the Big 3, affecting over 3 million workers in various industries. The void created will have a negative effect on a lot of Americans. Unemployment will rise. People will struggle to cope.
Yet, such is the American way. Our risk/reward capitalist system holds a caveat. Risk. Everybody doesn't win in America. Companies have to innovate to stay ahead. It's why we have HD-TVs. Viagra. Laptops. It's why encyclopedias and VHS tapes are nearing extinction. Likewise, the downfall of domestic car companies allows for emerging domestic auto manufacturers to rise from the ashes with a fresh perspective and better products. These new companies will also create jobs as they expand; employing those who would have been laid off.
Capitalism is a primary reason why we defeated the U.S.S.R. during the Cold War. Why should the government start adapting Soviet-esque socialist practices? Why should the taxpayers give the automakers more money to mismanage and keep the auto industry stale? Instead, we should be patient. Yes, the short-term outlook appears bleak. However, we should not be as shortsighted as the executives at Ford, GM, and Chrysler and realize that failure now is the better long-term solution.
Tom Werner
York College of Pennsylvania
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