So what about the US government trying to put together a package to bail out the US motor industry?
Personally I think it is a huge and costly mistake to offer any financial support to these archaic business behemoths. They should be left to fend for themselves, and let the strongest and smartest survive.
For too long these dinosaurs have displayed complacency and arrogance that got in the way of advancement and development of replacements for the internal combustion. The internal combustion engine is the most inefficient mode of powering a vehicle and it has been known for years. Even today they design and develop models like the Hummer, the Escalade and numerous other gas guzzling monsters that are totally out of sync with what is happening in the world today. They alongside the oil giants have lobbied the US government over the years to disincentivize new methods of powering transportation.
Their business model is flawed and against the Japanese car giants their cost base is too high. The unions have too much of a stranglehold on them to allow any advancement in working practices and freedom amongst the employees. Is it any wonder the motor city (Detroit) is a crime ridden, run-down and barren city.
This type of propping up inefficient businesses not only in the motor industry but also within the finance sector is storing up trouble for years to come. The sooner economists and governments wake up to this and realise that the free-market economy should be left to sort out the chaff from the true value based companies, the sooner the world economy can recover and move towards growth.
In my view both the US, UK and to a lesser degree the other Western world economies are going to be second class citizens in the global economy. The time will come when these economies will go with a begging bowl to the economies of the east to prop their 'house of sand' economies. This has already happened when Gordon Brown of the UK went on a whirlwond tour of the mid-east begging the Arab states to release their capital into the financial mess created by UK and US banks.
Their is a lot of trouble brewing ahead and many in power have got their heads in the sand
Shah Alam