Really. In this New York Times article, Mitt says no to the proposed bailout. He’s right, of course. Any bailout now is like putting a bandaid on a chest wound.
Instead, I say let the auto industry suffer from its poor management decisions over the last three decades. Yes, it will mean the loss of probably three million jobs and huge pension obligations in the short term. But as this highly pessimistic study shows, by 2011 most of the people who lose their jobs will find employment elsewhere. That’s the way the market works.
A bailout for Detroit will only keep in place an unsustainable cost structure, as Mitt indicates in the attached.