Business: Another Reason to Oppose the Bailout of Automakers

The idea that the bailout of American automakers is another handout to big business is one reason to oppose it. But another reason, more subtle, but maybe more important, is displayed in Congress' demands before bailout approval. From Reuters there is this:

Congressional leaders agreed on Thursday to give Detroit automakers until next month to make their case for a rescue but demanded that GM, Chrysler LLC and Ford Motor Co show they have business plans that can keep them out of bankruptcy.

...

The restructuring plans will have to show how management and labor are making concessions in order to clinch the government rescue portrayed by automakers as the only alternative to bankruptcy and massive job losses.

Or, in other words, Congress is now an expert on business management. Companies don't usually make plan to get into bankruptcy, unless it will get them largesse from the government. Not only will Congress attempt to save the economy (with other people's money), they think they can manage each and every part of it also.

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