GM and Chysler Bankruptcies

[Jester]

The way to affect the demand for automobiles would be to reduce the number of miles people need to drive. This can be done by the Government if they 1) required people to live closer to their work, 2) implement a massive transit system, 3) tax gasoline at much higher levels, 4) take over GM to control the quantity of vehicles produced.

One is hopeless, and violates free association. Two is a good idea, but that ship has sailed for most major American cities, and would take quite a lot of effort to reverse. Three is a fantastic idea. Four would be useless, because the US is an open economy and GM is not a monopoly supplier.

-Jester