“GM keeps 2.5 million people employed. But automakers, losing $2 billion to $3 billion a month, and their congressional supporters pleaded for a slice of Treasury’s $700 billion rescue package.
This is exactly the point. These people are destroying wealth, since the value of the cars they make is less than the cost of their labor and the capital used.
If they lost their jobs, they would be forced to get jobs that produce wealth instead.
Everyone who OWES more on their home than it is worth are walking away from them, but as soon as you drive off the car lot in a NEW CAR, your car is worth a ton less.....why aren’t people walking away from their car payments??? Oh....yeah....REPO MAN.....he’s lot harder to stave off than the sheriff.