GM Bankruptcy Deception

The misinformation defending the huge bailout is that 2.5 million direct and indirect jobs will be lost. That is absurd!

The net purchase of vehicles is not going to change - besides cyclical change. The change will be where (and who) will build the cars. It is completely ridiculous to presume that anywhere near 2.5 million jobs will be lost and never return leaving people starving. Unemployment in a location dependent on one industry is going to be chaotic. Yes people will have to relocate or find new careers.

Production assets, brands, engineering talent, management talent, production line experience, and resources would be (re)allocated to more efficient producers and/or producers with better product mixes. Will there be dislocation, certainly, but that has been going on since the 70's in the auto industry. Places like Michigan and Ohio have watched this industry decline around them for 30 years. Yet they have not adapted there policies or re-tooled there economic policies.

All of the "lost" jobs will not occur in one geographic location either. It will be spread around from Canada to Michigan to California. Bankruptcy protection or liquidation will result in assets being purchased for more productive uses or even alternative uses. The woes of the American manufacturers is the direct result of poor management and stifling labor contracts. Nothing more.