The Auto Bailout Proposal has Done Nothing but Make Automakers Money Hungry.

Hardly any time at all has passed since President Obama signed the most recent stimulus package into law, and an auto bailout proposal in this package is making waves.

With the signing of the stimulus bill, $787 billion dollars of taxpayers money is ready to dole out, and as you can imagine, a very long line is forming of hopeful recipients.

The automobile industry is first in line, with Chrysler and GM holding their hands out after being hit by some extensive labor costs and recession based losses.

And naturally, this is irritating some people because these companies, recession or otherwise, have already been the lucky recipients of federal loans amounting to billions upon billions of dollars.

$17.4 billion to be exact, between both GM and Chrysler, and GM is hoping for an additional $16.6 billion as it cuts almost 50,000 jobs all across America.

Chrysler on the other hand being a little less greedy, and only asked for $5 billion, and will only have to force 3,000 workers into unemployment.

But many people can’t help but wonder, where is all of the money from their previously funded bailouts going?

Or, an even more obvious question – if taxpayers are footing the bill for the auto bailout proposal, how is this money going to be regenerated if jobs keep getting cut within the industry?

Many Americans do not believe in supporting the auto industry anymore. They will tell you enough is enough, they are a private company, let them figure it out.

Why Won’t the Banks Play a Role?

Do the automobile industries deserve taxpayers dollars? Most private companies will seek funding from a bank or lending institution.

Automobile makers can’t get money from them because they are considered ”risky”. Same goes for private investors.

So, knowing that, these companies want an auto bailout proposal from the government, paid for by the very people they are laying off. Sound fair?

Perhaps this is exactly why America has lost faith in this industry all together.

So the auto industry gets infused with billions more dollars, that seems to just virtually drop into this black hole. And the government knows they aren’t getting it back.

Whats the Opportunity Cost

There is absolutely no reason for the taxpayer to continue paying for the mistakes of bad business.

Especially when said taxpayer is struggling today just to make their own ends meet, or laid off from any one of these companies.

And then we have that little thing called freedom. In terms of the auto makers, the Obama Administration isn’t touching this topic. Neither did Bush, or any of the most recent previous Administration.

They all just quietly turn their heads and inject us with this statist auto bailout, forcing the average American to foot the bill for private companies problems.

At the end of the day, the opportunity cost is too significant to expect taxpayers to take the heat for the auto bailout proposal.

Whether that cost is disguised as taxes, inflation, or stimulus packages, is irrelevant. Put whatever pretty word you want on it.

The average America is still suffering, no matter how tidy the package is.