As Detroit Budget Crisis Deepens, Is State Takeover Nearing? Detroit is deep in trouble ,Now Detroit needs a bailout because unions are destroying the town… it will go bankrupt very soon. The problem is principle. How about a ‘bailout’ to the taxpayer? How about that money to go something useful like education or health care for the troops instead of to giant, mismanaged corporations? And you know what happens when you give free money to a corp–the execs pocket it.
The auto industry would have been better off if they hadn’t been bailed out. They would have gone through bankruptcy and then reformed and emerged a much more efficient, competitive company. This sort of bailout action and protectionism is what caused Great Britain in the early 1900’s to fall from being the superpower of the world. You let the free market choose the winners and losers. The competition makes everyone better.
