"That means we're going to have to figure out how to put the pressure in the same way a bankruptcy court would... but do so in a way that allows them to keep their factory doors open," Said the president elect.
'The 2008 winner of the Nobel economics prize Paul Krugman said he doubted the US car sector would survive, but that it was worth supporting it in the short term. "In the end these companies will probably disappear," the economics professor at Princeton University said.'
Restructuring of the auto-industry? does this mean that the U.S economy is possibly turning into a transition economy due to the current recession.
2 comments:
I wonder why Paul Krugman would say help them now, but expect them to fail in the future. Something like that doesn't make sense to me coming from an economist. A politician maybe, because you want your constituents to keep their jobs but not an economist.
Well I've posted a blog previously titled "A British Lesson a Bail Out" and it gave the example of a large Bristish Auto maker being bailed out and fialed soon afterward. It is possible that Krugman thinks that maybe during better economic times, people will be able to handle the bankruptcy of the big 3 better when there are more jobs around.
Post a Comment