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Big 3 Bailout?

BY Collin LawsonSat Nov 15, 2008
This blog is written by a member of our blogging community and expresses that member's views alone.

This Saturday as world leaders from the G20 meet in Washington, the topic du jour is stabilizing the world economy.

Leaders from the United States, France, Argentina, Australia, Brazil, Britain, Canada, China, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Spain, and Turkey have come to DC with their own ideas and agendas for fixing the current crisis that we're in.

The very same global economic problems that's wreaking havoc in the G20 countries, has hit the U.S. equally as hard. Specifically the big 3 domestic auto makers, GM, Ford and Chrysler are on what could be described as financial life support, their current problems exacerbated by the recent credit crunch.

As Congress considers a potential bail out for the big three, the topic also came up among members of the G20 on Saturday. Specifically British Prime Minister Gordon Brown had critical words for bailout proposals supported by President elect Obama.

“Without referring to the companies by name, he warned against calls to save jobs in industries that were facing an irreversible decline in the face of global competition. The right response, he said, would be to say, “We can’t help you keep your old job, but we can help prepare you for your next job.””

While any bailout plan for the big three is a domestic decision, the interdependence of today’s global economy means that its success or failure will have ripple effects around the globe. Therefore, is Mr. Brown stepping beyond his role as British Prime Minister by trying to influence U.S. domestic economic policy or have we entered a new era in global economic cooperation, where this type of talk is warranted?

I guess time will tell.