Business article (Auto Bailouts) Essay Example | Topics and Well Written Essays - 500 words

Business article (Auto Bailouts) - Essay Example However, expending some financial assistance using the money coming from the taxpayers does not directly address the main factors why most of these large-scale businesses fail to cope with the challenges that usually arise during economic decline and slow growth. This is the main reason why most of the Americans oppose the idea of auto bailout. Based on a national poll survey, â€Å"six out of 10 Americans oppose using taxpayer money to help the ailing of major U.S. auto companies. (Steinhauser)† Upon analyzing the historical effects of auto bailout in the U.S. auto industry, it is clear that shredding out billions of dollars from the U.S. taxpayers will not solve the declining U.S. economy. Aside from the fact that extending a large portion of collected tax would be unfair to most Americans who will not receive any direct benefits from the auto bailouts (Steinhauser), extending large sum of government funds on U.S.-based automobile companies would only provide the people with temporary solution. Without focusing on the importance of implementing organizational re-engineering and restructuring, there is no way for the automobile companies to survive the financial crisis even if the government provides them with financial assistance. Extending auto bailout to car makers is not a good option since providing them with excessive amount of financial assistance would only impede further improvements in their management and business practices of the local companies. Instead, one of the best solutions that will enable the major automobile companies to survive the global financial crisis is to shoulder the short-term negative consequences of having limited financial resources in order to restore the companies’ long-term viability (Mitchell). Aside from negatively affecting the business practices and management behind the large-scale automobile companies, allowing the U.S. government to grant auto