It’s been a while since I studied economics, but I believe the basic tenet of the free-market system is that competition will make some winners and some losers. The strongest, most agile thrive, and the rest fall by the wayside. I don’t recall a clause exempting companies of a certain size. Yes, auto industry, I’m looking at you.
There’s a reason some thirty-somethings live in their parents’ basement: it’s safe. There are no repercussions for making dumb decisions, spending an entire paycheck on videogames or losing a job. The ‘rents will always be there to take care of them.
By bailing out the auto industry, we’re not only not helping; we’re actually hurting our chances at future success. By rewarding incompetence, we’re sending the message to GM, Ford and Chrysler that we’ll be there to clean up any mess they make, no matter the cost, so there’s no incentive to do better. At the same time, we’re discouraging innovative thinkers at smaller companies to invest their time and money in developing a better way.
Sure, people will lose their jobs, the ripple effect will be wide, and times will be hard. Those are never good things, but it’s the way the market works. I didn’t make the rules, but I think everyone should be forced to live by them equally. It’s the way the system works, and I don’t know of a better one. Do you?
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