Couple of thoughts on this.
1. Didn't we bail Chrysler out in the 80's? When they got back on their feet they tried to screw the govt out of the rest of the deal they made with them. And now they are asking for another handout?
2. Don't the big 3 employees that are unionized have the ability to decertify the union? They act like it's not their fault that the union exists. The union only exists because you allow it to. The results are consistent with the hypothesis that successful union decertifications increase firm valuation and unsuccessful ones reduce firm valuation.
3. There is an economic theory called Comparative Advantage. It refers to the ability of a person or a country to produce a particular good at a lower opportunity cost than another country. It goes on to imply that if we are only producing cars that are of equal quality with foreign car makers but our cost is higher then we should stop making cars and let the foreign car companies make the cars. They are obviously more efficient at it. I would hate to see these companies disappear but it is just not good business.
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