An article at CNNMoney details why the auto crisis is so serious.
More than 2 million workers in every state – including Alaska and Hawaii – draw their pay from the auto industry.
Problems in the auto industry are only exacerbating this turmoil. Not only have nearly 800,000 people lost car-related jobs this year, accounting for 40% of the increase in unemployment, but auto sales are at a 26-year low and at least 660 dealerships have closed their doors.
This means state and local governments are collecting less in personal income taxes, corporate business taxes and sales taxes — all critical to funding their operations. State tax revenue fell 2.6%, when adjusted for inflation, in the third quarter, according to preliminary figures from the Rockefeller Institute of Government.
Does this justify a bailout? I’m glad I don’t have to make that decision. I get to catcall from the sidelines.
Bailouts are distasteful to me. It seems to reward poor management. Whom do we bailout? How do we determine which companies are essential? No one pays for my mistakes.
And having the government involved is even more distasteful. Governments do very few things well. But what other entity could do it?
And the fallout. How do we justify that? “Gee, too bad. Happens all the time. Sorry.”
OMG. Am I a Huckabee Republican?