One of the mainstays of the American automobile industry will declare bankruptcy. Chrysler, in a deal involving the US government, Fiat, and the United Auto Workers, among others, will undergo massive restructuring in the next month or two.
I don't think that that in and of itself is so terrible. Companies, even big companies, are no different than people. They live and they die. No doubt the transition will be difficult for many, particularly the workers who will be out of jobs soon. In the meantime they won't be in too bad of a situation, most of them getting about 80% of their pay, and they at least have some lead time in finding something else to do.
What I don't like is the socialization of the auto industry. The federal government will come out of this owning, I believe, 8% of the company which is left. Don't think that that is something which will not grow over time, especially if the bureaucrats involved feel they have to prove themselves capable if the company falters all the more. The United Auto Workers (a union) will own a significant chuck too. Government and unions are a combination such as does not promise for sound decision making, and we may be witnessing the advent of a pattern which can only harm our economy in the long run. We may be viewing the creeping incrementalism which is the only way socialism can take over the American republic.
I can't entirely blame President Barack Obama about it, either. He didn't get this ball rolling: his successor, Mr. Bush, did. If everything goes south he can readily claim he was sucked into it by precedent.
I never thought a Republican would turn us leftward. I guess it's right after all when they say keep your friends closer.
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