Wednesday, June 3, 2009

Would the RNC Rather Have Had GM Go Out of Business? Apparently So.

RNC chairman Steele railed against the GM bankruptcy and the general administration's auto bailout plan. Again Steele, the RNC and the GOP generally come off sounding like the party of "No".

Moreover, conservatives again attacked a policy without offering any type of tenable counter proposal.

If the bailout of the auto industry is a bad idea then the logical alternative would necessarily have been to let GM fail. No one, liberal or conservative, has explained how letting GM fail would have been a good thing. If there is a cogent argument for allowing GM's failure I would genuinely be interested in hearing / reading it.

Instead of GM filing a Chapter 11 (reorganization, stay in business) bankruptcy, GM would have likely been forced to file a Chapter 7 (liquidate, go out business) bankruptcy without the government bailout.