Auto Industry Bail Out Fails

Friday, December 12, 2008
News came this morning that the proposed auto sector bailout has failed to pass in the US Senate. Part of me is just a teensy tiny bit happy. This whole situation baffles me and perhaps one of you good folks out there can explain it to me. Why is the government coming to the rescue of these multi-billion dollar companies who got themselves into trouble through refusing to make changes to compete competitively with foreign carmakers, gave us gas-guzzlers they told us we needed rather than the smaller, more energy effecient cars we wanted and REALLY need, and paid their CEO's and other executives outrageous sums of money even when their sales continued to plummet? These aren't government owned companies. Why are they more deserving than the thousands of mom and pop shops that have had to close? Where was the help for them? Or help for the hundreds of thousands of folks who've lost their homes? You don't see the the government running to help those people with handouts of money. Perhaps if they had shown up on Capitol Hill after flying in on a private jet, they would have at least had their voices heard.

I understand that the three major automakers employ a large number of people and throwing that amount of people out of work will have some serious repurcussions but I just don't see bailing out the auto industry as the answer. What is that going to solve? Why not ask the CEO's to give back some of their massive millions? Or perhaps the answer is to have the government take over the the auto industry in America entirely. I don't know. Perhaps the world needs another depression in order to make massive changes to the way things work. I just don't know. One thing I do know though, tossing money at a problem doesn't make it go away. It just delays the inevitable.


Dr. Monkey Von Monkerstein said...

The reason why our government is helping these companies is because so many jobs and businesses are interrelated with the auto industry. The automotive aftermarket supply and repair business is huge. Gas and oil markets would also crash if not for the auto makers, plus you have insurance and banks that depend on the money they get from borrowers and car owners. It's not my favorite industry but right now we can't let it fail. However what we can do in the USA is adopt a health insurance system like you have in Canada and that would take a huge burden off the auto companies if they did not have to pay health insurance premiums for their employees.

If the car companies do get some loans from Congress then they need to be forced once again to make electric cars and to phase out the use of gas and oil. They have been a huge part of the problem when it comes to our changing climate and they must be made to atone for their greed and mistakes.

The Fraze said...

I would say, if you're a huge fan of the genre and go so far as to watch b-movies and, lets say, sci-fi originals, you'll think Day the earth stood still is amazing - but if you didn't care much for War of the Worlds, i'd avoid it - because they're very similar.

I did like it, enjoyed a few parts - but it was disappointing.

mister anchovy said...

Dr. Monkey's comments resonate with me here in Ontario where a lot of jobs depend on those companies. No doubt they blew the mission and it's sad and it makes me a little angry.

If we bail them out, we need to have some control of what they do with the dough and what they do with the companies.

SME said...

Don't get me wrong, I feel for the families who rely on the auto industry for their suppers. But if these carmakers really want to stay on top, they need to simply make better cars that more people will want to buy. Better mileage, better parts, better service. Why keep these guys afloat so they can continue pumping out gas-guzzling behemoths?

harpervalley said...

you are perfectly right, of course....the government loves the auto industry as it's dinasaured charity. it's not just the fall out that would affect many components of the economy but the VOTES ....the auto industry represents the blue collar vote, it spills into many other industries that are similar and if,gawd damn it, the government will bail out 'detroit iron' then that , to the people, means the government cares about them all. such hog wash.

it's the r&d sectors of the industry that need the loans to produce alternative transportation that doesn't rely on oil.....the switch over to the electric car has been too slow in coming because the government, auto industry and Jane and joe doe haven't wanted it to come.

yet what better opportunity to create greener jobs, greener transportation?

if only they could all break out of their terydactyl shells.

Barbara Bruederlin said...

I actually see both sides of the argument on this one. Typical Libra.

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