That’s part of the key sentence in Megan McArdle’s latest post on the Motor City Meltdown. It’s painful, but true, that for each one of us, in our special world, nothing lasts forever. No matter how we wish it might be so. It’s time to quit throwing our good money after bad decisions, and I think we all would agree that there hasn’t been a good decision made in Detroit, or worse, in Washington, regarding the automakers in decades.
As Ms. McArdle so aptly writes:
But whatever your feeling about government intervention in the economy,
or the correct level of income inequality, I think there’s one thing we
can all agree on: for the world to get better, things that don’t work
have to fail. We cannot keep alive every company, every car and every
job that someone once liked, because that way lies stagnation and
death. Places where production decisions are made based on how much
labor they can consume, rather than how much value they can produce,
make everyone in society worse off in the long run.
It’s time for GM, Ford, and Chrysler to die so that they can be reborn. Maybe the next iteration will be more competitive and therefore more profitable. Think of it as Karma.