Prospect for U.S. auto bailout dims as Senate races clock

Link: http://www.cbc.ca/money/story/2008/11/19/usautos.html?ref=rss

Summary
Currently, automakers are facing a dangerous decline, which would lead them to bankruptcy. The Republican U.S senators, with White house support, provided a last minute plan to give $25 billion US dollars to bail out U.S automakers. If the plan succeeds, then automakers will have enough money to pass before the end of the week. Unfortunately, it is predicted that the bailout would have to wait till the new Barack Obama administration takes over in January. Also, another issue had been brought up about the fact that the government had chosen to bailout banks, but not the automakers. "Barney Frank asked how the government could justify a bailout for banks and insurers,but not the automakers."

Chapter 3 The Role of Government in a Market Economy
This article ties into the chapter of the role of government in a market economy perfectly. As stated in the summary, automakers such as GM, Ford MotorCo., and Chrysler are now in desparate need for a bailout from the government. Keep in mind, these automakers are privately owned, which means that government does not own it. In this type of issue, even though the automakers' company is privately owned, government can intervene when issues get out of hand. Right now, the government is debating whether they should bailout these automakers. If the government does bailout these companies, there would be positive third party affects. Current employees would be able to keep their job and earn a living. It would somewhat avoid anymore declining in economy, but if it fails, many people will be laid off and economy would decline even more.

Reflection
I think that government will bailout these automakers. There are many news ads on this article and everyone is aware of the situation. Public opinions may make an impact on the government's decision. The reason is because if they don't, more people will be laid off, which affects the economy negatively. People would avoid purchasing any goods, due to the lack of income. Also, I agree with Barney Franks's statement. If the government is willing to bailout bank companies, why not GM, Ford Motors, or Chrysler? These are all big companies that make big money. Thus, it would be the best interest for everyone if the government initiates the $25 billion bailout.