Bailout the Automobile Industry… please… now?

There always comes a time for bluntness in dire situations; now is one of those times. If we don’t save the economy soon, we’re going to need another New Deal. The automobile industry is in shambles, and bailing out is the best option, i.e. regulation.

If the auto industry doesn’t pick up, there is a very large possibility that millions of jobs could be lost, and this alone could lead to something worse than the Great Depression. Automobile production provides one of our main exports. Its failure could even severely halt the growth of the GDP. We need the auto industry to pick up. An increase of jobs is the best solution for this crisis.

Bailing out the industry directly follows the concept behind bottom up economics: a successful economy depends on the workers. Keynesian economics seems to the best option, which calls for government spending in economic crises such as the one we’re in now. We definitely have the capacity to produce jobs, but government has been relying on income tax cuts to answer all economic issues, while the national debt creeps past $10 trillion.

We’ve had eight bailouts in this year alone. A bailout essentially means that money is injected into a corporation or bank to stimulate it into producing jobs. In fact, this wouldn’t be the first time an automobile industry was bailed out if it occurred. In 1979, Chrysler Company needed to be bailed out to avoid bankruptcy. They ended up fine. So it’s not as if government has no expectations or no idea as to what will occur.

Hopefully, government will lean towards a bailout, but without anything, not only will the industry collapse, but so will the economy in its entirety.