Tuesday, November 25, 2008

If You're Wall Street, You're Fine; If You're Detroit, You're Screwed

The recent bailout of Citigroup while the automakers are left hanging is a testament to the warped priorities of financial experts both left and right wing. As Robert Reich points out, Citigroup has little real effect on the economy, while the collapse of General Motors and other Big Three automakers could trigger a massive economic collapse. The other major difference is that while a Citigroup collapse would mainly harm Wall Street, the loss of the major automakers would harm the country in general, and the working class in particular.

This is not to say that there should be a no strings attached bailout of the major automakers. At the very least, they should be required to put a real effort into integrating green technology into their cars, and to look into mass production of electric cars. However, it is only common sense that mass employment enterprises should be bailed out before we bail out Wall Street firms. Needed economic stimulus should come before corporate socialism. As Paul Craig Roberts recently pointed out, "A country that doesn't make anything doesn't need a financial sector as there is nothing to finance."

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