Bankruptcy will be better than bailout both for Big 3 and American consumer

These points come from Don Weil, however, I've mentioned particularly the need for change in the auto industry going back to the 1970s. Ohio's economy is closely tied to the auto industry, as is my son's job, so I do have mixed emotions on the bailout, however, for the country and the global economy, a bailout is much worse than a bankruptcy. Overpaid unions, overpaid CEOs. Head-in-the-sand industry. Over regulated already with Congress trying to run the business and push cars no one wants. And who was it that allowed the loophole on gasoline efficiency so that light trucks became the rage? Congress, of course. Lame duck Bush will do nothing, although he'll get the blame either way; Obama will wait so he can be savior, and it will definitely be called a success no matter what the results. Even if we stay in a recession or fall into a depression that lasts over a decade like we did with FDR who grew it to massive proportions, Obama will be lauded and praised at least until Americans wake up a few generations from now. My generation won't live long enough to have history sort it out, and our "free press" will certain be no help, if it even survives

• If the companies go into bankruptcy and come out stronger, the industry will employ about the same amount of people. If not, foreign auto makers will produce more cars in the U.S. and pick up many of these workers.
• A prepackaged bankruptcy could actually leave the major auto makers in better shape than they were prior to the financial crisis. Since the mid-1990s, the Big Three made most of their money on gas guzzling SUVs and trucks. That simply won’t cut it anymore. Bankruptcy will force the auto makers to quicken their shift to smaller cars.
• bankruptcy would give the Big Three an opportunity to rework their labor contracts, cutting compensation, and to jettison incompetent executives.
• Plenty of companies have emerged stronger from bankruptcy. Nearly all the major airlines have gone through that process and came out stronger than when they entered.
• The Big Three have had so many opportunities to change their practices since the first oil crisis of the early 1970s, yet they have been reluctant to budge. GM still has eight brands of cars, even though critics have pointed out for years that’s probably about seven too many.
• this current "bailout" bears no resemblance to the rescue of Chrysler in 1980. In 1980, Congress passed, and President Carter signed, a law giving a U.S. government guarantee of a private $1.5 billion loan to Chrysler. Not one dollar of taxpayer funds was ever used in the deal. Chrysler also had a clear plan to make a comeback and the loan was relatively small.

Dan Weil - Dec 8 at Newsmax
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For explanation of how UAW labor costs compare with other workers, see Heritage.