It appears that United States capitalism is different from typical capitalism.
If your business fails and you are large enough of a company, you can ask the [US] government for money to bail you out. Rather than doing what most other companies in a capitalistic economy will have to do, which is to be original and reorganize the business so it becomes profitable.
Having already set a precedent of bailing out AIG and CitiBank, next week the US government will decide on a bailout package of about USD15B to USD17B, for the three major US auto manufactures: GM, Chrysler and Ford. This is short of what the three companies were asking for, USD34B, to keep them afloat.
The more shocking fact of this story is that the approximate USD17B will only last the three companies until March 2009.
I think for USD17B or USD34B that the auto makers are asking for, the government can use this money to retrain the autoworkers for the future work force. It is not the question of whether United States should have an auto industry, but whether they should maintain status quo.
Do you agree with the US government’s decisions? Please share your comments here.