GM plans to use its $27 billion in
loansbailouts to import Chinese cars:
On Wednesday, Shanghai Securities News and other Chinese media reported that GM plans to begin exporting vehicles from China to the U.S. within two years, ramping up sales to more than 50,000 by 2014.
Corporations are soulless whores. That’s not a criticism, it’s just an observation. So, it makes no sense whatsoever for the Federal government to hand them money, as their only interest is funneling as much of it as possible to their executives. The important thing is corporatism is NOT capitalism and propping up dying corporate giants is an expressly anticapitalist action that can only harm the economy.
Macroeconomists are capable of calculating what some of the harmful effects of a bankruptcy will be, but what they’re not capable of calculating is what the harmful effects of propping one up will be, or the opportunity cost involved in redirecting the resources required to do so away from where the market forces would otherwise guide them.