Here's this morning's Marketplace commentary.
It comes as no surprise that some people in Michigan didn't like it much. It bears emphasizing that the failure of the iconic American auto firms would be very very far from the demise of the American auto industry. As I mention in the piece, they make Toyota Camrys in Kentucky. Honda, Nissan, Toyota, and other carmakers have major production lines all around the U.S. “MOPAR or no car” has never been further from the truth, and what's bad for GM is probably good for carmaking in America.
I think my general point is important, so here it is:
The alternative to creative destruction is not stable prosperity. Propping up yesteryear's winners leads to stagnation at best, plain old uncreative destruction at worst. The best defense is often no defense.
I believe this year's season of bailouts is creating conditions that seriously threaten the dynamism of the American economy and the future of American prosperity. If “too big to fail” comes to dominate our thinking, we will fail big.