Hot of the presses a car factory in the UK is close to closing. I love how we think the UK still has a car industry, and we now have the go to phrase we need government support.
Car companies are making less money and don’t need such output from their respective factories. These business are too big even for the good times, getting money off the government can only help for so long. They will still loose money and still lay-off or even close the factory. Business are categorically not big enough to fail, and if the companies or unions associated with those companies believe that all there prayers are answered with a handout. They should be forced to close.
We are already as a nation up to the neck in debt, yet we seem content to believe what the government says and continue borrowing and spending as if money is going out of fashion. Business isn’t a business if it isn’t making money from its products and ultimately it ends in failure.
Look at the US auto-industry, GM has announced that it is going to cut 50,000 jobs and needs at least $12 billion to keep going. The first round of bailout money was meant to put a stop to this and ultimately the business is so big and loosing money from so many outlets, the company as a whole is un-viable. A bank wouldn’t lend to GM in the good times under those conditions so why should a Government under the same ultimatum.