Auto Industry: Too Big To Fail, Too Big To Be Privately Owned

Richard Wolff, American Economist well-known for his work on Marxian economics, economic methodology and class analysis, Yale University Ph.D. in Economics, and Professor at The New School University in New York City, talks with Real News CEO Paul Jay about the reform needed to pull the United States out of economic crisis.

“If we say something is too important to let it die, too big to fail, then we’re saying it’s so important to the society as a whole, but if it’s that important, it can’t be in the hands of a few people in the first place. If you’re too big to fail, your too big to be in private hands.” He goes on to suggest that if there is chaos in the US economy, the rest of the world will have chaos as well. “We have an unknown situation, the outcome of which could be very bad, we actually have a vision of that already, Mexico, it’s a society in free fall.”

Real News Network – May 2, 2009

Too big to fail, too big to be privately owned

Auto industry affects the whole society, it’s too significant for private ownership


Skip to comment form

    • Edger on May 3, 2009 at 6:29 pm

    and enforce social responsibility of CEO’s and Directors and Management, or train it into them in the educational system in the first place, the it seems we are somehow going to have to get past the reflexive knee-jerk defense of capitalism and labelling that considering any other way of structuring the economy is evil “socialism”.

    Or the entire ship is not just going to sink, but go right down the drain.

    Think fast. We’ve got until about 5:00 o’clock to figure out a solution, I figure.

    This is not a test… there will be no second chances…  everybody run to the stern and think hard.

  1. what’s good for General Motors is good for the USA.  Too bad GM never saw the light about the need for energy efficient, or even reliable – cars.

    Certainly society needs for our government to be able to regulate one of our biggest energy use, global warming producing industries.  For the common good.

  2. That sounds a lot like a monopoly. The last time I checked, the only completely legal Monopoly is the board game.

    Why are we not talking about breaking up these huge outfits like AIG and GM? Let the component parts thrive or fail on their own. If there is a need for another GM-type company, the market should allow it to rise.

    • dkmich on May 4, 2009 at 11:49 am

    I predict they are going to build tiny, tinker toy cars that are energy efficient and that nobody wants.   If someone wants a cheap small car, they are all over the market.  What people can’t find are deals on SUVs and mid size sedans, fuel efficient or not.

    Until somebody builds an industrial and energy policy for this country, Obama is wasting our money.  What he and his car czar don’t know about cars is greater than what he doesn’t know about banks.  

    Obama has surrounded himself with all of the wrong people.  I am sorry I voted for him, and I won’t make the same mistake twice.    

Comments have been disabled.