This seems like blackmail to me. "Think of the jobs! Think of the ramifications! Think of the people!" It's like that GNR song Civil War. I really don't think that Axl Rose cares about genocide, hunger, and poverty, just like the owners of these car companies don't care about people. If they did, they wouldn't have been making such shoddy products for so long. I read a paper in my philosophy of law class by John Hospers, who was the first presidential candidate for the Libertarian party. While I do not agree with his views, I found it interesting when he denounced state sponsored "fake" jobs that exist solely for the sake of providing a person a means of sustaining themselves. Millions of Americans work fake jobs in another sense in that they work in superfluous and frivolous industries. If the economy continues to be bad, which I imagine it will be, we're going to see a lot more sub-par and unnecessary companies go away. Manufacturers of 3rd rate potato chips and I-pod accessories are going to be having a hard time!
(The fact that business is America's #1 major is an indication of this problem. Business is all about making money, which is fine, but I imagine it would be better both for the people and for the businesses if there were more innovators and people working to improve and maintain our quality of life, such as teachers, doctors, social workers, etc.)
Bailing out the auto companies seems counter-intuitive. Instead of forcing companies to be innovative, we're going to help out companies who refused to make products that would be best for the people and instead choose to make products that were the best at filling their wallets. Perhaps these companies going under will encourage innovation. Or perhaps these company's resources can be used to encourage innovation. I'd much rather see the money help the people directly instead of keeping these companies in business. Maybe money can be used to create other opportunities for the employees to find both employment and to improve the country, which I know is part of Obama's plan to re-build America's infrastructure.
I find it interesting that so many people were waving the banner of free-market capitalism and competition, but the minute they start losing they begin to abandon their ideologies.