Should the US Taxpayer Bail Out the US Automobile Industry Term Paper

Should the US Taxpayer Bail Out the US Automobile Industry - Term Paper Example Besides there exist questionable approaches and elements within the framework of most of the top US automakers, which if supported by a bailout, stand to persist. The fact is that the American automakers seek money from the US taxpayers to retain their status quo, rather then for embarking upon an ambitious program to weed out the inefficiencies and lacunas existing within their setup (Gattuso and Loris 1). The politicians prefer to justify such emergency measures by citing the massive losses incurred by the US automakers. Off course their exists ample truth in such claims. In October, the sales of GM fell by 45 percent (Gattuso and Loris 1). The Chrysler and Ford also reported respective plummeting of sales by 34.9 and 30.2 percent (Gattuso and Loris 1). The automakers ascribe this drastic drop in sales to the existing credit crunch. Still, one can not deny the reality that the US automakers did take many shoddy decisions before the credit crunch that unleashed the current crisis (Gattuso and Loris).