As the nation focuses its attention on the other, more expensive bailout being debated in Washington the Senate passes a $25 billion bailout for American automakers.

The US Senate Saturday approved 25 billion dollars in loan guarantees for the financially strapped US auto industry, intended to spark a wave of automotive innovation.
The loan guarantees were included in a continuing resolution that included funding for the US government and the wars in Iraq and Afghanistan.

President George W. Bush has indicated that he intends to sign the bill.

“We’re very pleased Congress has chosen to act at this critical time,” said Greg Martin, director of communications for General Motors Corp’s Washington office.

I’m certain that General Motors, which was (but presumably is no longer) teetering on the edge of bankruptcy, is very pleased at this news.  But for the average American this has to taste like a bitter topping on top of the already bitter dish that is the financial industry bailout which also seems destined to pass.

Have we forgotten that failure can be as important as success in a free market?  That perhaps GM failing would be a good thing in the long run?  That it might prompt some start-up, or one of the company’s existing competitors, to step up with the sort of innovation that GM has clearly been incapable of?

What incentive does any of America’s corporate giants have these days to engage in good business practices when every time they’re on the verge of failure we taxpayers are forced to bail them out?