Economics – Wayne Marr

Auto Industry: 11-10-08 Allow General Motors To Fail

November 10, 2008 · Leave a Comment

Read here.

Today’s price of $3.39 per share is lowest share price for GM since Dec. 2, 1946, when it hit $3, according to the Center for Research in Security Prices at the University of Chicago. The price is adjusted for splits and other changes.

I understand why General Motors wants to be bailed out. But what is the economic logic. Politically, the argument is easy – we bailed out AIG for $150 billion. But should the government pick winners and losers. Had we done this in the 1900s, we might easily have “Horse and Buggy” manufacturing plants in existence.

Categories: Economics
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