Paul Krugman: Automakers Should Be Rescued Video

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"If this was 1999, and we had 4% unemployment, I'd say let it fail, let the bankruptcy do its work, but this is not a good time to be having a really major industry turn belly-up." --- Professor Paul Krugman, Nobel Laureate, on automakers bailout.

Despite how we feel about these idiotic auto exec's, this is something that needs to be done in a timely fashion. Too bad there's no satisfaction in firing a lame duck Hank Paulson.

Author: d1595; Uploaded: Nov 20, 2008; Duration: 6:2; Views: 7144' favoriteCount='12

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annarboriter: So let's think this through. If this is a bad time for the big 3 to declare bankruptcy, when will be a good time? The US auto industry has been shooting itself in the collective foot with its collective mindset and not it wants the state to collectivize them. I seem to recall some people in positions of power and influence extolling the virtues of unfettered capitalism and a free market when rank and file workers were losing their jobs in the 80s.

dirckson: It's simple: the coming administration buy the car companies, kick out old managers (who still want to spent the bailout money on a HUGE factory in Russia, to make SUV's), tel new management to retool to make cars using the tech from Teslamotors to build the cars of the future.

gomergilligan: $30-40an hour to make crap! Let these 3 go under - yeah people will suffer, and like the old Soviet Union, it'll get worse before it gets better _but they and WE will survive. We need to re-structure ENTIRELY the US automakers - not more of the same shit.

dave777blaster: Krugman is a nut he flip flops all the time.

stanleythughes: Krugman does flip flop. First he blames Greenspan for market intervention then he turns around and call for intervention in the auto market

underfoil: dirckson: ya that would be a great idea. But spending public money on private companies is SOCIALISM. Let failed companies fail and let new companies emerge to replace them.

musicnovaDJnova: I don't agree with most of what he said however I do agree when he said: "These are not good guys ... They are IDIOTS"

lordgaladedrid: Let them fail - this is the free market working. More bailouts = prolonging the pain. All these so called professionals have no concept of a REAL monetary policy. and what is going to happen in a couple months? - NOTHING.

ferrozm: I can't believe this dick head won the nobel

pig5689: Not a dime, not one red cent. They'd just use it to supplement their own bonuses. These greedy sissys haven't worked one hard day in thier lives. I'd take a hard-working, poorly educated but honest and caring leader who worked his way up from the ground floor anytime. It's obscene the millions in bonus and salaries these dummies have been paid! Let the hourly autoworkers take them out to a back alley and whip their asses. Besides, all the cash in the world couldn't save GM, Ford or Chrysler.

cannuckistan: Have you all lost your minds?? Krugman's right: it's the timing. If the capital markets were working properly then bankruptcy could be allowed to restructure the industry. If each auto job support just 3 others, then that would almost immediately impact 6 million workers. These people won't be able to find any jobs until new industries emerge, so the government one way or another will have to support them.

abbypt1: 30 to 60 dollars an hour. Let them go bankrupt.The upper mgt has the money to bail them out. Frankly I don't feel the tax payers should have to do this.

user197a: This video proves that Krugman is a moron.

d1595: I'm astonished at how much we've detached ourselves from the reality when we said let them go bankrupt or let them go hungry as though that had nothing to do with us. Like it or not, the fact is that you and I are all in this together, and we could become one of them when this recession turns into a severe deflationary recession. And, it'd be a long time before we get through it. The Great Depression lasted over a decade. This is a difficult forum for this type of discussion.... Anyway.

EasyEs: Another argument for De regulation. How on Earth the idea of de-regulation got equated with monopolies and companies becoming to big to fail astounds me and Krugman needs to take some of the blame here. Europe is a prime example of this where competition is shut out and the government panics with tax payers money when things start to go south.

stanleythughes: Krugman said to George Will that during the depression companies had excess capacity so they would not invest. Of course he failed to consider investment to reduce costs. So doesn't the same thing apply now. If we use Krugman's previous logic the auto industry does not need any money

phoenix8765: "12 guys out of those millions" he says but its those 12 guys who control everything.

librophile: Congress should heavily fund the "TESLA MOTORS CORPORATION" in California who now produces the best electric car on the planet. (250 miles range on 1 charge / 0 to 60 mph in 3.9 seconds / Fully recharged in 3.5 hours!!) With substantial funding that corporation could become the NEW DETROIT, place millions of Americans to work produce less costly family cars in the IMMEDIATE future. This GREEN corporation is who needs help...not GREEDY DETROIT AUTOMAKERS!! Obama knows this. (Jan 20.09)

librophile: Last year the Democrats tried to pass a sound Energy Bill requiring Automakers to produce Fuel Efficient Cars...55 mpg by 2020. Powerful Autos-Lobbyists the Republicans opposed the bill. Bush vetoed the bill. The Republicans refused to give the Democrats the addt'l 9 votes to overturned that veto. The Dems had to compromise at 35 mpg by year 2020!! Japan already makes hybrid-cars at 55 mpg in 2008!! So Americans bought JAPANESE CARS. I don't blame them. Now Detroit wants bailout!!

roscoe85cj: LOL.. its all about these greedy pampered pricks (the UAW auto workers) who refuse to give any concessions on their $40/hour blue collar jobs and 95% pensions who bankrupted their companies .. let them rot, I'll never buy another american-made auto now that I understand the profits only go to supporting these spoiled brats and their elitist "entitlements".

madamswe: Dude, pension is not an "entitlement," it's an entitlement. They paid for it. Ask the people formerly at Enron how they enjoy their pensions that they didn't get. They probably felt pretty entitled too; unfortunately, Mr. Lay felt more entitled.

KyndestKid: This man knows what is going on!! He's predicted everything that's happening right now. If we listen to him we can save our country from a depression that will make the 30's look like a picnic. Government is the spender of last resort. If the government doesn't step in soon with some major stimulus... the economy will collapse!! My educated guess is that we'll need $800-900 billion next year to keep this economy from collapsing. Thanks trickle down economics(Republican's) for ruining my country

marsinpisces: oh, come on. wages account for 10% of production costs. on a side note, krugman is SO effing hot, even considering that goofy candy-cane tie.

milkgodnl: I would certainly defer to dr. Krugman, however, I would like to hear someone dispel the argument that a bridge loan to the american auto industry wouldn't be better spent investing in the U.S. operations of the Japanese and Korean automakers.

TadRapidly: He's basically right. The Bank bailout was just criminals feeding their fellow criminals with OUR money so THAT was just, well, CRIMINAL. GM, perhaps, deserves a break if anyone does because of the potential economic horror-show if they don't get it. Those poor people in Michigan have been getting shafted long enough by GM.

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