Swedish auto-maker SAAB has allegedly ‘run out of money,’ and cannot afford to pay its workers. The Swedish government has essentially said SAAB will have to figure its way out of the financial mess by itself- no government bailout is foreseen.
That move is being met with anger by some, primarily in the U.S., who ask if the auto giant is “too big to fail,” and question the Swedish government’s apparent refusal to intervene.
While this is an unfortunate reality for the company, and creates an uncomfortable (to say the least) situation for the 3,700 employees who will be directly affected if SAAB fails- not to mention the thousands employed by SAAB in some fashion or another worldwide- the government is not acting in the wrong with their supposed decision.
The concepts of a ‘bailout’ or that any company can become ‘too big to fail’ are purely American idealism. No company, brand, entity, etc. can be afforded that luxury. No organization, political or otherwise, should be able to rest on the idea that there will be a ‘safety net’ to make up for poor decisions, or that the government will somehow step in and make things all better when faced with bankruptcy- at the hands of taxpaying citizens, no less!
U.S. lawmakers agreed to ‘bailout’ schedules and loan terms for banks, auto-makers and other groups under the guise that the entire economy would fail had this preventative action not been taken. Of course, no one, even those initially opposed to the bailouts, was willing to conduct the experiment in failure, and, as the livelihoods of millions of Americans hung in the balance, probably with good reason.
On the other hand, the expense with which the bailouts were delivered, even after many of these loans have been paid back in full, have taken a toll, monetarily and otherwise, on the American people, and will continue to do so for likely many years to come.
In this regard, perhaps the Swedish government’s supposed lack of intervention as it pertains to a possible SAAB bankruptcy is the best thing it could do for the embattled company and its citizens in general.
Instead of forcing taxpayers to ‘get companies off the hook,’ perhaps this experience will be a good lesson for the auto-giant in their future business ventures, should their company or executives be lucky enough to find themselves in a money-making situation in the future.
You can only rob Peter to pay Paul so many times, before Peter begins to lash out.
by Selenium Washe; Gaseoustania Tonight