Taxpayers and the ‘Big Three’ – General Motors, Ford, Chrysler

December 8, 2008

At New Orleans Onsite Computer Services the conversation du jour among our Microsoft business clients is the US taxpayer bailout of the formerly ‘Big Three’ auto manufacturers, General Motors, Ford, and Chrysler.  This morning CNBC is revealing the results of one of their online polls: 64% of voters believe the government should not provide “bailout” or “bridge financing” for the Detroit auto manufacturers.

One of our clients, the eminent and scholarly William Barnett, PhD, an Austrian economist on the faculty of Loyola University’s School of Business, is of the opinion that in a free, capitalistic society we are all provided the liberty to create, organize, and operate a business.  Along with this liberty is the freedom to succeed as well as the freedom to fail.  Strong businesses realize profits and grow while weak businesses realize losses and shrink.  One of the main elements that separate the strong from the weak is the decisions of management.

Ten years ago Dr. Barnett often remarked that the best course for the Big Three is bankruptcy, due to management decisions of the past regarding labor.  Now the management of the Big Three is pleading with our lawmakers for bailout financing to reduce the threat of their failure.  This proposition of failure is nothing new.  Most business school students are familiar with the problems of the Big Three.  Any finance student with a spread sheet could predict the forthcoming ‘train wreck’ as competition from Toyota, Nissan, Honda, and the other Asian auto manufacturers increasingly capture market share and profits from the Big Three.

Should taxpayers enable the continued dysfunction of Big Three management decisions, or should we freely allow the Darwinian process of capitalism where the strong eliminate the weak for the benefit of consumers?  What do you think?

If you’re searching for New Orleans computer service or repair of your Microsoft based system or network, then call the Microsoft specialists at 504-469-6991. Onsite Computer Services, Inc. in New Orleans

You may also be interested in Onsite Computer’s Blog.

This New Orleans On-Site Computer Service post was provided by Eli Lucas. Eli can be reached at Onsite Computer serves the Microsoft computing needs of small businesses throughout the Greater New Orleans area including Uptown, Lakeview, Broadmoor, Mid-City, Metairie, Jefferson, Kenner, Westbank, French Quarter, and the Warehouse District. Please visit our website for New Orleans Computer Service.


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