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Market forces at work

Market forces at work

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GM needs another $5billion if they're going to survive.


Now, I'm not an economics expert, but isn't this just market forces at work? If there's dropping demand for what GM is selling, then how will more money help?

For a country that prides itself on being Capitalist and a free market economy, America does a fair bit of subsidizing of items that cannot compete in a free market.
  • I think the first assumption is that GM can survive and become viable, and I personally think that's reasonable. It's possible the american car plants _can't_ become viable, but the company as a whole - they can.

    Nationalising is an interesting idea - i'm not sure how well it works in the context of a multinational company that probably owns dozens of foreign companies... I quite like the idea of nationalising then re-privatising them, since it's a reasonably effective punishment of the dicks in charge of the company ;)

    I actually don't believe in propping up ailing industries that are not somehow essential to society. The market for cars will happily be filled by the japanese and the europeans, all those american GM workers could go and do something else. Of course - with a largeish unemployment problem at the moment, maybe the aim is simply to keep them off the streets, and try and keep the crime rate from spiking.
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