I agree that Foreign manufacturers locate outside of Detroit for that very reason.

I have heard that number as well and believe it to be greatly exaggerated. Let’s remember that automakers are lobbying the government for money here. I wouldn’t take anything at face value, but lets assume we do.

2 million jobs is a lot of jobs, but those jobs are at risk with or without a government bailout. A bailout doesn’t fix the root of the problem, it simply prolongs the life of these companies for a short period of time. GM and Ford collectively burned $14.6 billion in cash in the past quarter. The automakers are asking for a $50 billion bailout, that only buys them an extra 13 months. What then? Another bailout? Just like the AIG 2nd bailout? If these companies are to survive they need to face the facts and undergo radical change. It’s time to file Chapter 11 and get their cost structures under control.

However, if you look back to World War 2, one of the reasons the US won was our manufacturing base. It was companies like GM and Ford that built all those tanks and planes and other heavy equipment that were critical to winning the war.

If the US car companies go under, who is going to play that role when there is a major war? This is a national security issue.

The car companies are not totally to blame. They have been screwed by unions and have a huge competitive disadvantage with all the benefits they’ve promised to pay. Excessive govt regulation has not helped either, or the unfair trade agreements where cars coming into the US have low tariffs, but into other counties have high tariffs.

Notice the foreign car makers with US factories do NOT build them in the UAW states like Michigan, but in right-to-work states where they don’t have to put up with that union nonsense.

And before you think I’m anti-worker, my dad worked in a car factory for 30 years. But he’s dead now, so I don’t have a direct stake in the fate of those companies.

As for government sensibility, that’s only if he moves toward the center. Spreading the wealth is anything but sensible.

However, before I rush to choose a side, I’d like to understand the true impact to America if the big three fail.

It is my understanding that if GM folded, it would cost the US approx. 2 million jobs. That’s alot of people out of work and ALOT of tax dollars spent on unemployment.

Lets hope our leaders make decisions based on the health of America and not choose a course simply because it’s the capitalist thing to do.

As a side note – Just a week after taxpayers bailed out AIG, the company spent $440,000 on an executive retreat. What are you thoughts on this?

AIG, somewhat necessary. An extra few billion to top at 150bn? Not really. But automakers for sure.

@Marisa – i’m not really sure where you heard that the markets were going to soar – but Dems are never good news for the markets. The only help he’ll provide is boosting consumer confidence and bringing some sort of sensibility to the government. I hope.

As for the bailout, I’m a little bitter. A previous administration promised to stop illegal steel dumping so that our domestic steel companies could compete fairly. We didn’t want a bailout, just a level playing field. We didn’t get it and I watched entirely too many friends, family and neighbors lose everything in the 90s while the rest of the country prospered.

I have no sympathy for the auto makers and no confidence in government to fix anything. My broken record response: Get government out of the way so we can all pursue our own dreams.