Maybe we Little Folk aren't so dumb

The first thought I had when I heard about GM and Chrysler's promised austerity measures -- including closing plants and cutting jobs, being implemented to prove their worthiness for a bailout, was that we were supporting some strange things in tight times. I mean, what good is GM to us if it's not employing people (and preferably more people)? Anyway, I find it reassuring to see and economic expert raise essentially the same question.

I’m not arguing against an auto bailout. But it ought to be focused on helping American auto workers rather than helping global auto companies headquartered in America. Why pay the Big Three billions of taxpayer dollars to stay afloat when, even after being bailed out, they cut tens of thousands of American jobs, slash wages, and shrink their American operations into small fractions of what they used to be?

Of course, the counter-argument is that if GM folds, many more jobs would be lost than if it just slims down, but still. I think it's easy to forget that what we need is more employment and better wages here at home, not just improvements in the stock prices of some high-profile companies. The latter may help retirement accounts, but only the former will break the feedback loop that is making our economy run more and more feebly.

(via Talking Points Memo)