Sunday, November 21, 2010
Study supports U.S. auto bailout
Was the bailout of the auto industry the right thing to do? Did it help or hurt the economy? Well one study shows that the bailout was a better plan than doing absolutely nothing. According to this study, more than 1.4 million jobs would have been lost if it wasn't for the government bailing the auto companies out. And, even though the economy was not in very good shape, if there was no bailout the economy would have been even worse. This is because 1 auto worker creates jobs for 10 people. But also, if these auto companies went under and were liquified, there would have been a loss of about 121 billion in personal income. So, it shows that the bailout did help the economy. This makes sense because the auto industry is a big part of the United States economy.
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This is very true. The government would have paid a much higher price had they not chosen to bailout the auto industry. Not only would it have been costlier but a tremendous amount jobs within our economy would have been lost. Additional government costs included unemployment benefits, medicare, and social security, which would have been necessary if these automakers were not given any help.
ReplyDeleteI also agree that this bailout was the right thing to do. In studying the great depression last week we learned that government spending during a contraction is necessary. I believe bailing out the auto industry and the banks was the main reason our recession was not another great depression. In time, I believe many more positive reports about the bailouts will surface.
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