General Motors Facing Possibility of Bankruptcy

Even if General Motors is forced into bankruptcy protection, it will require at least an additional $40 Billion from the U.S. government in order to do so. At that point, we have to start asking the question of whether it is worth it to keep throwing good money after bad in an attempt to save a company that is clearly incapable of saving itself. And even with bankruptcy protection and massive cash infusions from the federal government, the automaker admits that none of it will help if the global demand for automobiles continues to decline.

A company that is unable to survive in poor economic conditions is not operating in an effective manner. Every company that is successful in the long term must be able to navigate through difficult economic waters. The tech bubble built and burst and there are numerous tech companies that rode out the storm and emerged in great shape, now leading their respective industries. And all of it was done without billions in government loans and aid.

The era of the automotive behemoths may simply be coming to a close. Companies that large and inefficient are essentially operating just like small government bureaucracies, but without the guaranteed influx of tax revenue from millions of over-taxed Americans. In the long run, it's better to let those companies die and be replaced by more efficient and profitable operations that are able to sustain themselves in any economic climate.