I agree with those who think a bailout is a bad idea; here's why:
It is a matter of principle for me. It is not the government's job to do this sort of thing. Would it hurt the economy to let it tank? Absolutely, and it would be, as Carpe put it; mind-boggling. Would it hurt me personally? Absoultely, my 401k has been bleeding for months, and I hate it, but I want a system of government/economy, to be guided by the "invisible hand". Natural adjustments happen all the time in our economy. It is like life. What doesn't kill us, would serve to make us stronger.
Even if it were GUARANTEED to work, in the next year or two, to repair the big three, I would still be against it. It is like junk food. It feels, smells, tastes good, but it is not good for the long haul. Where does this stop? This bailing-out thing. How big does a company have to be, in order to be helped? My company is struggling, why can't they get help?
These gazilion-dollar-a-year CEO's have demonstrated clearly how serious they are about their companies surviving with their $20k chartered jet rides to the capitol this week. They are fat, happy, complacent. This philosophy comes from the top down, and probably says something about our country in general.
In reference to Carpe's per-hour estimate on big-3 workers, I heard it was over $70/hour, to Toyota's just-over $40/hour. This illustrates the "spoiled" nature of labor unions, and it also shines the light on how irresponsible some of the negotiations were in times past, when these benefits packages were developed and signed with said unions. One can only blame management of these companies for these ridiculous contracts, they knew when it came time to "pay the piper", they would be long-since retired.
The only reason I might agree with a bailout is to keep the capacity open for production of war implements for the united states, should we ever need it. There should be extremely tight restrictions on any bailout, including turnover of all upper management. I almost think there are so many layers of management in these fat organizations, that they could get rid of the top three layers, and still function; and possibly even more efficiently.
Accountability has alot to do with it for me as well. When we as people make a bad decision, bad consequences follow; or they should follow. The big three should be made responsible for the bad decisions they have made for decades. This will happen if they are allowed to fail.
If they fail, and if the market supports it, new automakers will take their place; this is the natural course of events. I'll be willing to bet, that the new automakers' business model would be more like the Asian automakers.
I have three children, and I want there to be a healthy landscape for them, and their children. And yes, I believe if we bail them out, that the landscape will be tainted. Like JP used the "S" word.
I could literally go on for pages about this subject, but I'm stepping off my soapbox now.
"I can't believe I'm sitting here, completely surrounded by no beer!" -Onslow