End The Bailouts
American Auto Industry: “Can we please have $25 billion in tax payer money to stay in business?”
Congress: “If we give you the money what are you going to do differently to ensure that you don’t end up in this situation again?”
AAI: “Umm… This time we’re going to do it with your money instead of our own.”
And scene.
“We have little evidence this $25 billion will do anything to promote long term success,” said Michael Enzi (R-Wyo.) “I’m pretty sure if you took this bill to your banker and asked for $25,000, he’d send you back to do more work.”
I do believe that there will be a significant amount of economic turmoil if the big three collapsed, but handing them free money to continue failed business practices is not an acceptable solution.
This country is at a crossroads in our future of long term energy solutions, and the auto industry will play a key role in that process. This is and always has been a very industrious and ingenious nation. We have an opportunity to make a giant leap forward in terms of sustainable energy. I say if the auto industry wants my money, then they need to demonstrate to me how they can help in this.
“Their board rooms in my view have been devoid of vision,” said Sen. Chris Dodd (D-CT), chairman of the Senate Banking, Housing and Urban Affairs Committee, in opening remarks at a hearing attended by the executives of the nation’s Big Three automakers. “The Big Three turned a blind eye to opportunities. They have promoted and often driven the demand of inefficient, gas guzzling vehicles, and dismissed the threat of global warming.”
I don’t want to get off on an environmental tangent, but the days of gas eating vehicles are fading. If you want the money, present me with a business plan that helps this country and not just yourself.
4 Responses to The Big 3 Bailout – A Play in One Act.
Leave a Reply
Start Producing Wealth- Identity Theft Victim Harassed By Creditors
- Equifax Coupon Code 2012 – Complete, ID Patrol, 3-In-1
- Identity Theft In Restaurants On The Rise
- What Does Equifax Do? A Brief History
- LifeLock Promo Code 2012 – Save 17% at LifeLock.com
- LifeLock Coupon Code 2012 – Save Money at LifeLock.com
- Identity Theft In Restaurants – A Not So Nice Meal
- How Much Does Equifax Know About Me?
- Compare Equifax ID Patrol and Equifax Complete
- Feather Falls Casino Identity Thieves Arrested
- Identity Theft Articles
- Wiping Your Hard Drive Clean - Great Identity Theft Protection
- Using A Shredder To Protect Your Identity
- Identity Theft Of Deceased Persons - An Awful Crime
- Single-use Credit Card Numbers Should Be Used More Often
- Things To Look For In Identity Fraud Protection Services
- What To Do When You Lose Your Wallet
- How To Avoid Identity Theft In Your Business
- What to Do If You Lose Your Social Security Card
- History Of Equifax - Company Owns Your Secrets
- How To Prevent Identity Theft From Happening
- Office Walker
- A Treadmill Desk Walk Through Terre Haute, Indiana
- Virtual Walk Past Farmersburg, Indiana – Treadmill Day 38
- 31 Days Using a Treadmill Desk – Status Report
- How To Start A Weight Loss Program (No Treadmill Needed)
- The Treadmill Desk Revolution Is Spreading – Day 24
- My Vacation (From Treadmill Desk Blogging)
- Using a Treadmill Desk – Day 18
- Treadmill Desk Workstation, Loving It – Day 14
- Walking Barefoot On Treadmill Experiment
- Treadmill Work Station Experience – Day 9 and Happy Halloween!
Some things to read or watch on our request for funds to support our automotive industry:
Bob Nardelli’s Senate/House written testimony at http://blog.chryslerllc.com/blog.do?id=537&p=entry
Mark Phelan’s article, “6 myths about the Detroit 3,†in the Detroit Free Press at http://www.freep.com/apps/pbcs.dll/article?AID=2008811170379
and a Chrysler video “Straight Talk About Assistance†at http://www.youtube.com/watch?v=uPODSNAbkOU
Thanks. Patti, Chrysler
Patti,
I have read Mr. Nardelli’s written statement, and found no specific examples as to how your company will act differently in the future if we the American people do give you a loan. The sales gap between US and foreign made vehicles is shrinking. This has little to do with the economic climate and more to do with poor business practices. Now auto sales being down across the board does have to do with the current economic conditions, but we have no evidence that these conditions will improve in the immediate future. If we give your company the money, how is it that you are going to ensure success during these hard financial times. If you don’t have the leadership and foresight to weather the storm, maybe your company needs to step aside so a new company can rise. I don’t want to see your company fail. I want all of the US auto makers thrive, but if you can’t figure out a way to do that on your own then why should we bail you out?
There are two factors that have caused the current situation with the auto industries. One- The economic downturn has lowered car sales. Two – Americans don’t have a sense of pride in “buying american” anymore. There used to be a sense of pride in goods manufactured in america, but now many Americans are willing to screw over our national economy to save a buck. Heck, some will argue thats the “American Way.” (Also, Clinton F’ed them over with NAFTA but I’m not going to go into that.)
I firmly believe that this economy hasn’t seen hurt yet. If the auto industries are allowed to go bankrupt, the economic recession will turn into a harsh depression almost immediately. It’s not just the 2 million jobs that will be lost in the short term, and all of the parts suppliers, dealerships, and contractors. There will be a residual effect bigger than anyone imagines.
I live in the Detroit and I know it will hit home particularly harshly in this already battered region but it will also effect other areas of the country as well. I was in the Upper Peninsula hunting last week, and we overheard some locals lamenting on how the auto companies should just go under. They didn’t believe it would have much effect on their community, but I differ. How many tourists like us would still go up north and spend hundreds of dollars at bars and resteraunts and gas stations in the upper if they didn’t have a job? How much more is their state income tax going to have to rise to offset the initial unemployment of thousands of auto workers?
It is bad news for our economy as a whole if these companies go under. People probably spend more on their car every year than anything else (except their house) Simple macro economics tells us that any money spent on an imported product gets subtracted off of our Gross Dimestic Product because money is ultimately leaving the country. If you buy a $2.00 Heineken, a majority of that two dollars gets subtracted off of our GDP even if it’s bottled here. In the same way, if you buy a honda, nissan or mazda, a majority of the amount gets subtracted off our G.D.P. even if it’s assembled here. That’s a lot more money when we’re talking about a CAR as opposed to a beer or CD player etc. The auto comanies and economy could be doing much better if a majority of Americans had bought american vehicles in the last 10 years.
The auto industry has been a core manufacturing area of the United States for the past century, and its one of the few left that produces a tangible product. I think it’s important that we remember this, and the disadvantage we as a country will be put at without these companies. I agree with reforming or even abolishing the unions, but it is important that America continues to produce our own vehicles now and in the future.
Bankruptcy is not a viable solution. It won’t work with this industry like it has the Airlines. I just woke up this morning to hear of another Bailout to Citigroup which puts the U.S. Taxpayer on the line for another potential $320 Billion? Is $25 Billion too much to ask for something so vital?
$25 billion is too much to ask if you don’t tell me how you are going to spend this money differently then you did your own money. And for the record no one here thinks the banks deserve any of the money they have received so far. By your logic I would be well within my rights to say, “Hey, Congress, my family depends on me to be able to provide for them, but times are tough right now. Please give me $500,000 to continue living.” I’m not lying. I am the provider for my family and we really do need financial help. Plus $500,000 is nothing compared to the $25 billion the auto industry is asking for.
That is the problem with that line of thinking. A lot of people need help. Asking for less money than someone else doesn’t make it anymore right.
I too live in Michigan and I hope the auto industry does not fail. It would be devastating if that happened, but if these companies want my hard earned tax dollars you need to tell me what you are specifically going to do with it. I have only owned cars produced in America, specifically GM my whole life. I like that my vehicles are made locally, but I will not fault anyone else for buying foreign. If someone buys a Honda made in Ohio, I say fantastic. Those workers at the Ohio plant need their jobs as much as the people working at the Ford plant in Michigan.
I hate to say it, but this really is the most self centered country some times. The world has transitioned to a global economy. If we all purchased nothing but made in the USA products it would be great, but foreign countries are not stupid. If we don’t buy their stuff, they won’t buy ours. And then we will be in serious trouble.
There is such thing as a happy balance. We can get there, but we are not close right now, and hand blank checks to these companies (banks, auto, or any other industries) without some sort of proper business strategies in place will hurt us far more than we can imagine.