Thursday, April 30, 2009

Yes, it is a job saving plan

I understand Robert Reich's concern, but I think he is missing a rather obvious point here.
What? Having General Motors or Chrysler cut tens of thousands of jobs in order to be eligible for a government bailout reminds me of "saving" Vietnam by bombing it to smithereens. Aren't we giving these companies billions of taxpayer dollars to save jobs? ...
Yes, it seems counter-intuitive that Chrysler and GM need to cut jobs in order to get a "job saving" bailout. Until you consider that, if they don't get the bailouts, even more workers will lose their jobs. If GM doesn't get the bailout and goes out of business, 100,000+ workers could lose their jobs. If they do, only 21,000 have to loser their jobs. 21,000 < 100,000+.

Therefore, this is a job saving plan.


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