From Peter Klein (via 37s)

"The proposed bailout of GM, Ford, and Chrysler overlooks an important fact. The US has one of the most vibrant, dynamic, and efficient automobile industries in the world. It produces several million cars, trucks, and SUVs per year, employing (in 2006) 402,800 Americans at an average salary of $63,358. That’s vehicle assembly alone; the rest of the supply chain employs even more people and generates more income. It’s an industry to be proud of. Its products are among the best in the world.

Their names are Toyota, Honda, Nissan, BMW, Mercedes, Hyundai, Mazda, Mitsubishi, and Subaru."

I think that foreign automobile makers would fill the space rather quickly. Some brands would disappear, but most would be continued one way or another.

It would also open up for innovation in the car space, something america hasnt had for a long time.

I find myself enormously frustrated by this whole situation. I don't like many cars produced in detroit and I would never buy one. I don't want to prop up companies whose products I don't admire. At the same time, I don't want to see so many people out of jobs because the big three go bankrupt. I've never been to detroit, but I can imagine that if the big three went bankrupt the city would be in dire straights.

The people that are pondering these problems are going to have some very tough decisions ahead of them. Balancing what is better for the country as a whole and what is good for "detroit" (all the companies, people, and suppliers that are interwoven with the big three) is an enormously tough job.

I'm no expert on Detroit's economic situation, but the detail I will never forget is how much it cost to park in a lot downtown for the day last time I was there. $5.

It's an easy $27-40 to park in downtown Chicago for the day.

I actually got chills when I saw how cheap it was.