Over at Takimag, Chronicles contributing editor Tom Piatak has a thought-provoking piece on the proposal to extend $25 to $50 billion in government-backed loans to the Big Three automakers. Among other points completely ignored by those who reflexively shout “Let them die!” whenever the American auto industry is mentioned are, as Tom notes, that as many as three million U.S. jobs may be lost; that the “tax loss from such a catastrophe would be over $150 billion over three years”; and that over 850,000 retirees receive pensions and health benefits from the Big Three–and taxpayers are on the hook for at least some of that cost through the Pension Benefit Guaranty Corporation.
In other words, the extension of $25 to $50 billion in loans may be the cheapest way out of this mess. Predictably, though, the same people who declared that we had to bail out Wall Street have drawn the line at Midwestern Main Streets.
Tom’s thoughtful, reasoned, and fact-filled post drew a response from Richard Spencer, modestly titled “A Modest Proposal.”