Wednesday, November 12, 2008

No to the Auto Bailout

Don't bail out the automakers, I urge on "Marketplace" today:

Time was when General Motors alone ranked among the largest employers in the United States.

Today, UPS employs almost four times as many people as the two big U.S. companies, Ford and GM, combined. While the Big Two decline, Toyota USA, Nissan USA, BMW, KIA are all expanding — and not asking for any bailout.

The Big Two remain important employers. Their troubles are felt up and down the manufacturing supply chain. But of course that is true for every industry.

Last week, the stock of Las Vegas Sands Corporation collapsed. Bankruptcy seems a real possibility. Indeed, the whole casino gambling industry in Nevada is facing the worst crisis in at least a generation, maybe ever. Casino gambling directly employs more people than the domestic automobile industry. Add in the supply chain for both industries, and casinos still employ almost half as many people as the automobile sector.

So what about a bailout for the casino industry? Ridiculous! Right? But why right?

11/12 09:10 PM