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To Boost Detroit, Help Taxpayers Get Behind Wheel

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The Tampa Tribune

Published: November 15, 2008

It is tempting to give General Motors the emergency federal cash it says it needs to stay in business. Jobs would be saved, at least for a while.

Taxpayers might even get repaid. But federal bailouts are getting out of hand at a time almost everyone is hurting.

There isn't enough government money to fuel everything that's slowing down. If GM gets help, Ford and Chrysler will want help too. And what about the public sector? The mayors of Philadelphia, Atlanta and Phoenix are asking for huge loans from the pot of federal bailout money.

If they get help, why not Tampa? Why not Florida?

The federal government, in agreeing to help banks and finance companies, has confused both taxpayers and business leaders. No one seems sure what the plan is, who has been helped or whether the aid has done any good.

One option for GM is reorganization through bankruptcy, which would force market discipline on the unions and top management. The company says bankruptcy would hurt business, but we doubt customers would notice. People don't mind flying on airlines that are in bankruptcy.

If Congress does decide to help GM, the rescue shouldn't be in the form of a big check. One alternative would be to grant GM a generous contract to build police cars for cities and counties. The guaranteed sales would help restore investor confidence, and local governments buying the reduced-price cars could pass the savings on to local taxpayers.

Another option is to help the American public buy more GM products. It goes against the grain in a free-market economy, but so does a direct bailout.

Congress could offer a $2,000 rebate. It could be in the coupon form, printed in newspapers. Our industry could use some help, too.

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