The Auto Industry

As time goes by here in Atlanta the stories of layoffs and job closings seem to accumulate. However I know that their are cities that are far more worse off than Atlanta. Take Detroit for example, they were once a bustling city of auto makers, but now in these financially troubling times how can a city that relied so heavily on one industry even break even?

It will be interesting to see how the US government will respond to the pleas of companies like GM and Chrystler. These two American companies employ hundreds of thousands of Americans. However if these companies were to fail, what would happen to all those people and the economies they live in. Obviously if these two companies were to fail, the effects would be felt Nationwide, but places like Detroit where almost the entire economy is based off this one industry, will certainly be detrimental. Should the US government help these companies and possibly prevent them from failing or will they just be throwing tax payer money into an unless money pit? On one hand, you could save thousands of jobs and possibly help to stimulate the economy by allowing those who are employed to have a positive money stream. However the risk of helping these companies that seem to be failing regardless of their numerous attempts to cut costs, seem a bit to great for me to endorse. I am sorry but we are a part of a market system where the strongest companies survive. Even if we do bail out some of these auto companies, if these companies fail at adapting to the current market conditions then they will continue to fail well into the future. I hate that so many people may lose their job, but the management should have been producing products that would have been more suitable for the market. If you were a manager at a company still attempting to sell gas guzzling SUVs, within the past 5 years I have a feeling that the you and the other managers of your company failed to look around and analyze the current market. http://money.cnn.com/2009/02/23/news/companies/federal_auto_options/index.htm?postversion=2009022317