ABC Ponders Bailing Out More Troubled Industries -- Like the Media!
The taxpayers have already bailed out lenders and insurers, and theyâ€™re about to rescue automakers, so why not try to save other industries that have been run into the ground? That was the attitude of ABCâ€™s â€śWorld News with Charles Gibsonâ€ť on Nov. 11.
ABC correspondent Chris Bury weighed the good and the bad of the proposed auto bailout â€“ aimed at helping General Motors (NYSE: GM) with as much as $75 billion in taxpayer money. The segment featured an industry group representative and a business journalist.
â€śI believe in creative destruction,â€ť Farzad said. â€śOut of the ashes of an industry in ruins, something else will emerge.â€ť
David Cole, director of the Center for Automotive Research, said the auto companies were too big to fail and the damage to the economy would be too great if they did.
â€śThe cost of keeping the industry going is a lot less than the cost of failure,â€ť Cole said.
â€śThe bailout could cost taxpayers up to $75 billion, but letting a big automaker fail could cost the American economy $175 billion in lost income and taxes the first year alone,â€ť Bury said, citing statistics from the pro-bailout Center for Automotive Research.
â€śThose tumbling dominos â€“ from dealers to parts makers to ad agencies â€“ employ more than 2 million Americans,â€ť Bury said of the businesses impacted should GM be allowed to fail. But once the precedent is set, many industries could make a case for a bailout, including part of the news media. â€śIf weâ€™re bailing out autos, why not
Farzad explained the
Cole, who represents the car industryâ€™s failing members, didnâ€™t want to focus on responsibility for bad business practices. â€śRegardless of who is to blame, forgetting about that, whatâ€™s in the best interests of our economy?â€ť he asked. â€śWhatâ€™s going to cost less for you and me as taxpayers?â€ť
â€śCapitalism is brutal,â€ť Farzad said. â€śAnd these shifts that happen once every or twice every generation are never friendly. But ultimately the government has a decision to make.â€ť