If you pick up any newspaper or go to any news website you will find news stories concerning the crisis facing the big three American automakers. They are on the verge of going bankrupt and now are looking for the government to bail them out much like Wall Street has been bailed out. At this point, no decision has been made regarding the automakers and opinions vary as to how to aid them, if at all. Some experts believe they should be allowed to fail, re-organize and learn from their mistakes. Others are of the belief that a bailout is necessary to prevent thousands of people from losing their jobs.
The situation is like a double-edged sword. If these corporations are bailed out with taxpayers' money, they will be less inclined to change procedures and will most likely fail again. If they are allowed to fail, there is a risk that they may not recover. However, it is more than likely that a judge would allow them to file for bankruptcy, settle debts, and reorganize. There is a risk here in that they could very well return to the policies that got them into trouble. What has to happen is that there has to be major compromises and sacrifices made both with union members and management. Automakers can simply no longer afford paying union members what they demand. If union members want a job, then they are going to have to sacrifice some of their luxuries. If they refuse to do that, automakers are going to be forced to relocate to right-to-work states.
This becomes a question of loyalty. Who owes who the most loyalty in this situation?
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