Detroit
Given I choice, I’d rather the Government buy something than just give money away.
Instead of giving the automakers $50 billion, suppose the Government were to simply place orders for 1.5 million hybrid vehicles at $35,000 each. The Government could replace every car it owns and then some, Detroit would have a huge order to make profits on, and the action would have a significant impact on carbon emissions.
I’m not arguing that the automakers shouldn’t declare bankruptcy—they should. But the Government’s order for cars could keep these companies going during the bankruptcy, and give them a chance to emerge in a more competitive manner.
Absolutely correct.
