Wait, Why Are We Bailing Out GM And Letting Them Ship Jobs Overseas? (GM)

Joe Weisenthal from Clusterstocks writes:

This is one of those stories that makes us feel stupid, like, maybe we’re not getting something.

But at the risk of exposing our ignorance, we have to ask: What the hell? Why on earth are we bailing out GM (GM) only to see them embark on a plan that will involve more importation from low-labor countries? What on earth could be the purpose of that. No, seriously, why?

NYT: The administration, however, appears to accept the proposition that to return to profitability as quickly as possible, G.M. must import a significant percentage of cars from its plants in low-wage countries, like Mexico and China, or low-cost countries, like Japan.

So wait. The Japanese transplants can profitably make cars in the south, but GM has to import from Mexico, China or even Japan? Japan, really?

And isn’t this immediately waiving the white flag on Obama’s desire to see the re-emergence of a strong, manufacturing-based middle class?

Seriously, someone needs to explain why it’s cheaper to build cars in Mexico and China, with all the political risk (not to mention the cost of shipping) than it is to make cars in Detroit — WHERE PEOPLE CURRENTLY DON’T HAVE JOBS!

Is GM really saying: Yes, we know you don’t have work, and you’d probably work for $3 an hour, but we’re still going to Mexico, because it’s cheaper down there?

And what was the point of bailing out GM again? It’s not to maintain jobs?

We’re speechless. Seriously.

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