Government's justification for bailing out companies like GM is to ostensibly save jobs. Diversification is great for your economic portfolio but it's not so easy for workers. Telling a laid-off auto worker to switch industries is not a very fair thing to do.
It's far easier to move capital around to different industries. Not so easy to transfer your skills between them.
It's far easier to move capital around to different industries. Not so easy to transfer your skills between them.