“Let Detroit Go Bankrupt” – NYTimes.com

Op-Ed Contributor – Let Detroit Go Bankrupt – NYTimes.com.

This article by Mitt Romney was published back in mid November. He provides his perspective on the “Big 3” bailout. As a very successful businessman, his opinion is worth something.

I’ll post a few good quotes from the article.

“Detroit needs a turnaround, not a check.”

“Retiree benefits must be reduced so that the total burden per auto for domestic makers is not higher than that of foreign producers. That extra burden is estimated to be more than $2,000 per car.”

“Companies in the 21st century cannot perpetuate the destructive labor relations of the 20th.”

“Investments must be made for the future. No more focus on quarterly earnings or the kind of short-term stock appreciation that means quick riches for executives with options. Manage with an eye on cash flow, balance sheets and long-term appreciation.”

“Starving research and development is like eating the seed corn.”

“I believe the federal government should invest substantially more in basic research — on new energy sources, fuel-economy technology, materials science and the like — that will ultimately benefit the automotive industry, along with many others. I believe Washington should raise energy research spending to $20 billion a year, from the $4 billion that is spent today.”

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