Mitt Romney, in the New York Times:
"It is not wrong to ask for government help, but the automakers should come up with a win-win proposition. I believe the federal government should invest substantially more in basic research — on new energy sources, fuel-economy technology, materials science and the like — that will ultimately benefit the automotive industry, along with many others. I believe Washington should raise energy research spending to $20 billion a year, from the $4 billion that is spent today. The research could be done at universities, at research labs and even through public-private collaboration. The federal government should also rectify the embedded tax penalties that favor foreign carmakers.
But don’t ask Washington to give shareholders and bondholders a free pass — they bet on management and they lost."
Read the whole thing here: "Let Detroit Go Bankrupt"
The "bailout" mentality of Washington needs to stop now. Reagan noted twenty years ago that entitlements were out of control and deficit-exploding tendencies threatened to enslave generations of American workers under a tax burden that would cripple innovation. He also gave us some advice: "Government is not the solution to our problems. Government IS the problem."
Back to basics time, ladies and gentlemen. Capitalism 101-- make a bad bet, lose your shirt. Work hard, save money-- live happy.
