The Detroit auto companies were “loaned” over $17 billion by the government, just before the inauguration of Obama, and they are already asking for billions more. This comes as little surprise with the way government has been handing out unearned money.

A key feature of a free society and economy (Capitalism) is holding businesses responsible for their actions, by allowing them to fail when they are unable to meet the demands of consumers with their own resources. Of course the United States do not, nor have they ever, operated under a Capitalist system. By propping up inefficient companies like Chrysler and GM, we are diverting money into wealth destructive activities. Destruction of wealth leads to deterioration of the quality of living.

People are genuinely concerned about the effects of the bankruptcy of the Detroit auto companies. Many fear mass unemployment (which is happening regardless). However, the foreign car companies cannot meet consumer demand alone, and southeast Michigan has a solid workforce and plenty of capital in the form of factories. Some entrepreneur would likely step in, rebuild the Detroit auto industry, and start selling better and more affordable cars. All this could be accomplished by the government doing NOTHING.