General Motors: Do they Deserve Help?

In a recent article from Bloomberg.com, published on March 8th, there was a discussion as to whether or not General Motors deserved any more bailout money.  For those that don't know, last year GM asked for $10 to $12 billion from Congress.  Congress decided to give that money to GM, and yet GM is still asking for more.  But not just more, $16 billion more.  

Many Republicans are now beginning to believe that perhaps Chapter 11 bankruptcy would be the best idea for General Motors.  By filing for bankruptcy, they believe GM would be able to reorganize their company and reduce debts.  In fact, Arizona Senator John McCain believes that bankruptcy would allow General Motors to emerge, "stronger, better, leaner".

Perhaps I don't know enough about the economy, but I don't see this as a positive step.  Even though GM has been fighting bankruptcy speculation since 2004, I believe this would be a major step back for our economy.  Nearly 47,000 jobs have been cut by GM this year alone, as a result of their major losses.

If GM files for bankruptcy, the country's confidence in our automakers will plummet.  The stock market will take a major hit, and our economy will tank yet again.  Just as the government is working to keep AIG afloat, they must attempt to keep General Motors afloat.  If we can't keep the people confident in our industries, we will have a very difficult time overcoming this recession.  

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