An Auto Bailout Would Damage Free Trade
Matthew Slaughter, Dartmouth College | November 20, 2008
A bailout for the Big Three automotive companies could damage US engagement in the global economy. ++ Foreign investment and job insourcing would take a major hit, costing jobs and devaluing the dollar. ++ By expanding protectionist policies around the globe, the bailout would hinder US multinational businesses, including the Big Three auto-makers. ++ To keep up international competition, the US should not give support failing companies, but rather take care of dislocated workers. ++ In the end, the cost of this bailout would be far larger than the US Treasury can pay.
