It looks like Congress is likely to pass a bail out for the Detroit 3. I'm not sure that is what we should do, but I also don't feel I have enough economic training to make a truly informed decision. I doubt many typical Americans do. What I do believe is that we should not repeat our mistake with the banking industry. We cannot just hand the auto makers a free check to do with what they will. We should not have done that with the banks. We gave them the money with the intention that they would release lending, but that has not happened. Bastards, one and all. If we are going to pass a Detroit 3 bail out then we must:
- Make them repay it.
- Require them to invest heavily in energy-efficient alternatives.
- Kill outrageous CEO pay stubs and bonuses.
- Require a real business model that will compete globally. (related to #2)
- Have oversight and ability to retract money for noncompliance.