UM: Auto Industry

CNSNews.com posts an article about the proposed auto industry bailout. Hart Posen, a UM business school professor, still questions the 1979 bailout of Chrysler: “There is no evidence that, in the long run, having bailed out Chrysler we’ve done anything good for the Michigan economy…My sense is that even with the bailout, one or more of those firms will disappear anyway. There is significant overcapacity in the American automobile industry, and it is typically inevitable when there is significant overcapacity that some of it gets eliminated.” [Source]