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While you're correct that it's not the role of the government to bail out private companies, it is the role of the government to work for the people, which includes measures to protect their jobs. The government is issuing a loan to help sustain the economy, because of the size of the shockwave that would occur should the big three fall under.
I think the point that he was making is that Honda, Toyota, etc. haven't been producing cars in the US as long as we have, and to be perfectly honest really up until the late 80s or early 90s, nobody really foresaw Honda, Toyota, etc. becoming as popular as they have in the US, and therefore you can't really blame the big three for holding onto that business model. Once that was done, they had binding contracts that they couldn't just leave to pay for things like healthcare and pensions, which are things that Honda and Toyota don't have to worry about with US employees, because they haven't been operating here anywhere near as long, and the mentality as far as jobs and unions go was completely different when they did start operating here, then when GM was signing contracts in the 70s to insure that their employees would have pensions and healthcare packages, which if they hadn't given their employees, they wouldn't be here today. GM has done everything within it's power to reduce those costs, but they can't just make the go away now. Even if we say they were a mistake then, which I personally don't believe they were, GM can't just say "Oh, by the way, we're going to ignore this contract and get rid of your pension. Peace out."
You can't blame this on the business model, because it's not GM's business model, it's America's business model circa 20 years ago that companies like GM are still locked in to.
And, on the subject of it not being the role of government to bail out private companies, I highly suggest you contact some senators and ask why it is they gave grants, not loans, grants to foreign companies to open plants in their states, but now are balking at saving our own companies. They threw free money to foreign industry, and now refuse to loan it to our own. Our automakers actually benefit the American economy, foreign automakers do far less to benefit our economy.
As far as protectionism goes, I think the point was that if Japan isn't going to let us do business in their country and expand into that market, then why should we let them come over here and try to dominate ours? If I let you park your car in my driveway all the time, I'd expect that when mine gets paved you'd let me park mine in yours.
(I think I kept the tone of this pretty impersonal and not political, but if not please just point it out. I don't mean to offend, and quite honestly you make very valid points, and good-spirited debate like this is a great thing, IMO.) (Also, post pics of the 'vette. :-D)
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