Stebben84 wrote:Why? Do you need a large company to fail in order for start-ups to occur. There is still money out there. And as someone else said, a start-up is not going to come in a shwooosh, make a better car. That takes time. They've had years and years to be a start-up and they still can start up. I think that is a moot point for this debate.
It is absolutely not a moot point. While a new company can
start up in the presence of a state-subsidized oligopoly, they are at a competitive disadvantage (because they are not subsidized).
Crockett made an excellent point earlier when suggesting that the start-ups might not even make cars - they might make something else entirely. Maybe those engineers and factory-line employees would be better off long-term working in whatever new industry develops after GM closes shop. Those "good-paying American jobs" in the auto industry only existed on their own terms for just a few decades - they had by no means achieved a stasis in the American economic/jobs picture.
If the start-up has nothing to do with making cars, then how are they competing against this oligopoly? There is government money to be had for these start-ups. There are tax breaks for new businesses, federal grants, and federal loans. I don't see how starting a solar panel business is going to be impacted by GM getting government money. Especially if you don't think this start-up should be subsidized at all.
My grandparents and many other people's parents have actually worked at these jobs their entire lives and did well. Times are changing, sure, but to say that these jobs achieved no stasis in the American economic picture is short sited. Plus many people don't stay with one job for their entire lives either.
You also go on to say that these employees would be better off in the "long term" start-up jobs. First off, I don't think there is any shortage of people looking for work right now. Also, these start-up companies are often very risky and don't always make it. You think that is a more stable job. These statements have no reality based in them.
In the end, I think the GM story is on the road to achieving it's goals of keeping many, many people out of work. Let's not forget some towns are based off of these companies and the job loss gets spread beyond the factory. I don't really know what is truly a success story cause if in 20 years GM fails, people will say it wasn't a success. All I can say is that, in my opinion, it helped during a crappy economic time.