Source: NPR's On Point
As lawmakers appear to be finalizing a bailout package for the automobile industry, experts disagree over the prudence of this bailout. On NPR’s On Point, David Rothkopf argued that the government should stick to what it has historically done best—regulating and adjusting incentives to guide industry—rather than attempting to invest in and manage the auto industry. He emphasized the fact that the government is not good at managing companies, and the current panicky atmosphere should not fool us into making another hasty mistake like the Wall Street bailout.
Moreover, giving the government a significant stake in the auto industry might create conflicts of interest with the energy reform goals of the next administration. The government’s ownership stake could make it slower to embrace a system-wide shift in energy policy and regulation, which would be a mistake in an era when this type of change is vital for protecting our climate, our national security, and our economic stability.