RESOLVED: The government bailout of General Motors was fair and appropriate.
The GM bailout was successful mainly because it saved more than 1 million jobs 9. It saved this many jobs because it saved all the industrial workers jobs in Michigan and also it saved all the GM dealership jobs across the US. It helped GM turn around its company because after its 21 month sales decreases it finally had sales increase in 2009. “GM ends up an economic contributor to the U.S. economy,” said Barry Ritholtz, author of “Bailout Nation” and chief executive officer of New York investment research firm FusionIQ. “It’s manufacturing products, it’s creating jobs, it’s buying wholesale parts, it’s doing what an industrial company is supposed to do.” It also saved the American Auto industry. If GM were to fall out and go bankrupt many jobs would be lost and their wouldn’t be another major car company would be able to take GM spot and have such a turn around as they did. (Kamil H.)
Point #1: No guarantee of long-term success
What’s to say it won’t happen again? GM was a victim of bad planning- Got themselves into the situation to begin with; bailout is rewarding bad business. Companies rise and fall with the trends of the economy: if taxpayers just give them more money, they won’t restructure/ rethink during the trough in order to be successful in the future. Bailout just adds to the problem instead of fixing it. Bailout's short term effect takes away from the development of future energy sources - not forward thinking- we are only going to drive gas powered cars for so long before we will eventually run out of gas.
Point #2: GM Bailout was unconstitutional
Government can’t spend taxpayer’s money to take ownership of private institution; GOV's actions violate Commerce Clause (Article I, Section 8, Clause 3), which is designed to balance the power of government, especially that of the federal and state governments. The commerce clause was created to prevent interference by the states, which in Gibbons v. Ogden (1824) Justice William Johnson called “conflict of commercial regulations, destructive to the harmony of the States.” Constitution gives government authority to regulate, not to do absolutely anything to control it and bring together the states as an excuse for overwhelming federal power. And also, just because there is an “emergency” doesn’t justify going against the Constitution in an effort to “make things better.” If every time there is an urgent problem and we disregard the Constitution, it loses its validity - we are neglecting and not respecting the effectiveness and core principles on which our nation is founded. (Brookie H.)