If General Motors is allowed to fail, won’t we lose three
million jobs? That multi-million job loss comes from both GM’s own
employees, plus the suppliers and dealers.
However, the economics behind that idea is pretty bogus.
The number of auto jobs we have is tied to the volume of
cars we produce and sell in the
United
States
.
If GM fails and then the economy recovers, the jobs will recover. They may not be GM jobs. They may well be Honda or
Toyota
jobs, but still located here in the
United States
.
Or consider the alternative: that after GM fails, car demand
never recovers. In that case, subsidies
to GM continue forever. The
U.S.
taxpayers
continue to do what GM has done for so long: pay auto “workers” to not work.
It is possible to produce high quality cars fairly
inexpensively, and in
America
. The Japanese companies do it. GM cannot.
If GM fails, someone else will take up the slack.