In a new column, Reason Foundation’s Anthony Randazzo says taxpayer money won’t save dying Detroit:
Should we bailout the car companies? That’s the multi-billion dollar question Congress is debating this week. Sales are down, the economy is slow, and the credit crunch is killing auto industry. Detroit’s “Big Three” automakers have asked for $50 billion federal dollars to cover their costs and increase their liquidity-and this after receiving $25 billion in September to help them meet new Corporate Average Fuel Economy (CAFÃ?â?°) standards. Even though it will cost a lot jobs in the short-term, Congress should not extend this lifeline. The best hope for the long-term future of Detroit and the American auto industry would be to use Chapter 11 bankruptcy to restructure the car companies, emerging as vibrant and competitive as ever.