GM loses $9.6 billion - Let's give them more money?

I see on money.cnn.com that General Motors lost almost $10 billion in the 4th quarter. Now they've got their hand out asking for more money.

I keep talking about General Motors because as of last year they had 252,000 employees according Time Magazine, and they were bleeding money all year.

You would think that this company would do massive lay offs and plant closures to shed a ton of its costs.

WE FOUGHT AGAINST SOCIALISM IN THE WAR
Growing up in the 60's and 70's I remember a little talk about how we hated Russia's communism, and how we fought in World War's to fight against socialism.

The U.S. and Canada have prided themselves for being free market countries. These days it doesn't seem like it.

1) General Motors is getting social assistance for people to make $40/hour
2) General Motors is still hemorraghing money
3) Where's the incentive to innovate?

1) General Motors is getting social assistance for people to make $40/hour
It's not like we're helping starving people who are going to the food bank.
General Motors employees are making alot of money relative to other workers.

In trying to tighten its belt in the last decade, Canada's federal government has tightened its belt with Employment insurance, & social assistance. People didn't like the added restrictions and cost cutting but they learned to live with it.

Now the government is handing over public money, without much thought, to a company who is paying its employees several times more than minimum wage.

2) General Motors is still hemorrhaging money
General Motors seems to be incapable of cost cutting to a point where they're profitable. Because of their extensive contracts, they're unable to lay off people and close plants. I'm not sure what the reasons are, however, the company is still losing money.

I understand why General Motors would be reluctant to lay off alot of their staff. It's because it costs them so much money to recruit and train people. That's understood.

However, the problem is... they need to shed alot of costs right now. $9.6 billion in the fourth quarter. That's $3.2 billion per month at least that they would need to shed before they started making money.

3) Where's the incentive to innovate?
Necessity is the mother of invention. That's been a strong rule that we've lived by as a country. When the chips are down, or there is a strong need, we get to work and innovate.

Having General Motors receive money like they are is just delaying the problems.

If General Motors and Chrysler declared bankruptcy, that would focus their minds on actual cost cutting and innovation. The amount of pain suffered would be enough to motivate them to do what it takes to make the company profitable again.

I like General Motors.. They make good cars. I am pretty loyal to their brand. They're just not getting the point right now. They need to declare bankruptcy, shed their costs, get motivated again to start making money.

If we keep bailing out this company, it's going to be a socialistic company. I definitely won't buy a car from a company that's owned by the Federal Government!!

Let's talk about this