Billions More to General Motors

General Motors has now demanded six billion instead of three to keep afloat. In Canada, people have to sign their families away to get money for their profitable businesses but General Motors is getting money again that they have been losing continuously so far. The company has continually been building bad cars since the seventies, so why continue subsidizing their effort. Smaller cars are competing with Japanese cars in Europe so why not have the same initiative in the US. In other words, their plants should be finally closed so that they build more efficient cars instead of making a losing product.

On this side of the border it makes no sense in subsidizing money to the company whose profits would go to the US if they do recover. Chances are that they won’t because there have been no real changes until now and we should learn from the fact that the company has only been burning cash so far. The money that this government wants to offer should be divided among its citizens so that the economy can be stimulated at the small business level, entrepreneurial level rather than giving it to a dinosaur that is wallowing around in a mud pit. I am also against the fact that no money would return to Canada if the economic plan to give the money succeeds.

General Motors’ own auditors are expressing doubts that their industry will survive. It could have competed with the Japanese, now it is too late and the money the company wants has now increased two fold to six billion. Definitely some small businesses could give a viable plan to increase business success.This would do much better than the old car company that continues to bleed no matter how much its gets in transfusions.

There has to be a shift in the way business is done in the US. Should we be continuing to give money to a company with no collateral? Of the two scenarios in losing General Motors or losing the company and six billion, I would prefer to lose just the company and have the money invested in businesses with viable plans. General Motors has no collateral and we would only be throwing our money away to a bleeding scourge.