Boycott Watch  
November 17, 2008
Economic Talking Points:
BW to Bush: Don't Buy GM stock, Buy GM products
    It is a mistake for the U.S. Government to just bailout General Motors. The fact is that giving money to such a company may allow them to keep their doors open for a while, but it does not help the workers keep their job, be it with GM or especially their suppliers. It also does not help the dealers, mechanics or anyone else who rely on the auto industry. Instead, the government, thus our economy and nation, would be better off modernizing the nation's fleet of cars by purchasing 100,000 cars at an average cost of $25,000 each. That would mean spending 10% of the $25B needed to bailout GM, and since GM only builds cars when ordered, that would keep the workers at their jobs, and the industrial supply line working.

    The sale of used cars would also help the economy and give the U.S. a de facto rebate, as people who need reliable transportation will be able to purchase well maintained used cars at a good price and the government would take in revenue from those sales. Business is facilitated by moving money from hand to hand via the exchange of goods and services for money. Giving money to a person to continue what they are currently doing is welfare, and it does not advance their condition. The same applies to a bailout. On the other hand, buying cars creates employment and productivity, thus the best option to help troubled auto makers. And, in the process, the U.S. will obtain some value for its investment.

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