Honda's home grown plants are doing fine. Why would you expect the big three to fail when the other plants are still profitable?
No, a bail out fixes nothing. If they can't compete before, why would they be able to compete after?
There is a massive difference between a bail out and the 'incentives' you are referring too, unless they changed how incentives work.
Here's how it works in most states. If you bring your company to our state, we will give you a tax abatement, or a tax exemption for the next 5 or 10 years. In other words, we will not tax you for that time frame.
A bail out, confiscates money from tax payers (us), and gives out big checks to the companies.
In one situation they are simply not taxing something that was never there to tax before. The other they are taxing the hell out of us to give to them.
Not being taxed, is not remotely like being subsidized. If your taxes are reduced, are you being subsidized by government allowing you to keep the money you rightfully earned? If so, then everyone in the entire nation is subsidized because all of them are allowed to keep some amount of money, right? The only one not subsidized would be those paying a 100% tax rate.
Bush gave you a tax cut in 2001. Do you consider yourself subsidized now?
They are not on the public dole, unless they are getting money doled out from public funds.
BTW, it is true what you say that when the incentives run out, when taxes increase, they tend to move to a new location where they can get lower taxes. That happened here in my area recently. A large company had their HQ my suburb. When that abatement ran out, they got one in down town Columbus. When that run out, they moved to a nearby suburb.
They had three locations in roughly 30 year time frame. Undoubtedly, if the other suburb doesn't lower taxes, or extend the abatement, they'll move again.
Of course this is the cause and effect of taxes. The point that should be learned is that lower taxes allow and attract business. High taxes have the opposite effect.
I agree. We are socializing our selves into third world status, while prior 3rd world countries, are capitalizing themselves into first world status.
While former soviets, chinese and Indians are adopting American capitalist systems and ascending, we're adopting soviet, Chi-com, India style socialism, and failing.
