Should the states support the car industry?

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State finance

The past week the car industry has been taking up a lot of space in the news. The industry is suffering from the financial situation, not selling any cars. The spokesmen of the industry have been saying the the governments must take action as they have done in relation to the banking industry. I not really sure wether I like this idea?

The US

Most obviously the American car industry is in big trouble, as this is the greatest producer of car in the world. But Opel in Germany are also having problems. Opel has asked the German government to grant money to keep the factory from closing.

What will the industry take along in the fall?

A very good argument for granting the industry some state fonds is that thousands will loose their job, which will make the financial situation even whorse. All the industries suppling the car industry will also suffer great losses. In Germany some cities only existe because a car factory is placed nearby. 

What should the conclusion be then?

Objectivly I am against supporting private companies, who at some point have made lots of money and who should have been able to keep some of this for bad times. On the other hand, I feel terrible for all the people who will loss their job if nothing is done. Has anyone got the answer to this problem?

Written by admin

november 23rd, 2008 at 8:55 pm

Posted in business

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