The case for the auto industry bailout has been presented on several occasions as a way to help the economy from collapsing since too many people depend on the health of that industry.
The problem with this argument is that bailing out the auto industry does not guarantee its success in the future at all.
Regardless of how costly it would be to let the companies fail now, it’s preferable to what their failing business model could cost at a later time.
Unfortunately, the reason government is usually not desired in running businesses is that profit maximization and public policy require different actions.
