The Obama administration's auto task force, which took five weeks to form after the inauguration despite the crisis, is reported to be set to recommend that GM and Chrysler get more aid and not be placed in bankruptcy. The task force has been scrambling to do its work, given its late start, and three of its members specialize in climate change - which means they bring an ideological commitment to having the auto makers build cars that are unprofitable because people don't want to buy them.
How comforting.
The economically rationale approach is for GM and Chrysler to file for bankruptcy, with Chrysler probably closing shop and GM shrinking in size - with bankruptcy tools making this possible.
But because this is about preserving union jobs at a key Democrat supporter, the UAW, and using the government's power to force the auto makers to make green cars when consumers don't want them, politics is trumping economics.
And we, and our children, will all be poorer because of it.
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