Detroit
Soon taxpayers will write a cheque to Detroit 3 to save themselves. Opponents of bailout say free market should prevail.
I am surprised by the fact that there are people who believe that car industry is subject to free market forces. Japanese government thru its Ministry of Industry and Technology has invested in its car makers for decades including the development of Prius. This method of goverment supporting was copied by Korea. The resources were used to develop efficient cars especially under the guidance of Deming.
If Deming built Japan's car industry, a congressman by the name of Dingell (D-Mich), maintained the status quo in US car industry by blocking rules for increased fuel standards and enhancing safety features.
So in an industry were the foreign competitors have access to their home countries' treasury and also where US congress played a part in shaping a bad car industry in Detroit, it is only natural US govt. support Detroit.
Comments
Normally I would think that they are subject to free market forces, but as you mention, who can compete on that level?