Its survival of the fittest people

So, there has been a lot of discussion about the 700 billion the government is (or isn't) going to give the failing banks but what hasn't been making the news (at least not nearly as much) is a 25 billion check that congress is issuing to the big 3 car companies in Detroit. There has been no contention of this in the media and people that I have mentioned it to haven't even known about it. Read about it here... http://www.autoblog.com/2008/10/01/big-three-pass-credit-check-government-loans-approved/

Now, when I stared this Web-Log I said I wasn't going to discuss the economy on the whole but I can't be quiet about this S*.

Why would the government even entertain the notion of helping a company that has failed. The big 3 auto-makers in Detroit Ford, GM, and Chrysler (none of which are truly an (American company I'll rant about that tomorrow) need to have the Darwin effect applied to them. They shifted the majority of their effort to building huge trucks & SUVs. Now, I realize that Americans have wanted to buy these gas guzzlers (despite all of the signs and warnings there have been in the past 20 years both of the detriment to the environment and the fact that gas is going to get expensive) but rather then making new trucks and SUVs along side of there smaller cars they allowed themselves to basically ignore the car market and now they are suffering for it. They are scrambling to build cars and losing money on all their trucks. But the thing is, they put themselves in this position by shifting all of their production lines. Not only that, but all of their trucks are getting bigger and bigger, remember the size of the original Ford Escape? compare it to one now you'll see what I mean.

I think businesses like these should be allowed to fail. In the short run a bunch of people will lose their jobs (which sucks) however, unemployment and welfare for these people would probably be cheaper for the government then any of the buyouts. But, in the long run one of two things will happen, another business will fill the void left and the founders of the new one will learn from the mistakes of the one that failed. Or two, the world will realize that the particular void left doesn't really need to be filled and we will move on.

The government is giving money because they argue that millions of jobs will be lost, but I have heard all sorts of politicians claiming that small businesses keep the American economy rolling. Yet, hundreds of small businesses, restaurants and stores go out of business every day and the government doesn't do a thing to help them. Is it lobbyists or what?

However, I am just yelling into the void, the government is going to do what it wants to do there is no real stopping it, they are going to represent us the American people by doing what's in THEIR best interests (great system we have huh?). However, if they are going to continue helping Airlines, Car Companies and Banks can I suggest one little addition to these bailout proposals. Specify that current management is all fired. I know it seems harsh at first but when you think about these people have been given enormous amounts of money (an executives yearly salary is probably more then I will make in my lifetime) to run a successful business that has been around for years, decades even, into the ground. Allowing them to keep their position not only rewards poor management it encourages more of the same.