I don’t think the American government should bail out the failing US auto industry.
Mitt Romney has a great op-ed in tomorrow’s NYTimes on why Detroit should fall into a bankruptcy. The crux of his argument, is that Detroit needs to restructure itself. A bailout (aka Get out of Jail Free card) would let it pass go and collect $200. “With [a bailout], the automakers will stay the course — the suicidal course of declining market shares, insurmountable labor and retiree burdens, technology atrophy, product inferiority and never-ending job losses. Detroit needs a turnaround, not a check.”
The piece ends with “Mitt Romney, the former governor of Massachusetts, was a candidate for this year’s Republican presidential nomination.”
What it should have said is that Romney founded Bain Capital. BainCap is, arguably, one of the most successful private equity firms. Romney knows a thing or two about running businesses and making things operationally efficient.
