Thursday, November 13, 2008

Saving Big Auto

We seem to have a sudden need to save everything. In our rush to save the world, are we dooming our own society? The land of the free is becoming less free with every passing bailout proposal. Freedom to both succeed and fail seems to be no longer allowed once you get to a curtain size. Capitalism has been reserved for small business only. Or to be more Blunt, small businesses are the only businesses that are allowed to fail. Once you get to be as big as a national bank or a national auto maker, the American tax payer now becomes responsible for keeping you in business. CEOs no longer have to worry about making good or bad decisions because no matter what, the government will step in and save the day on the backs of its people.
I don't know how much available money you have in your budget but I don't recall setting asside billions of dollars for corperate bailouts. If I get in too deep, who will bail me out?
The comical side of this is watching the Democrats try and deal with this. Their liberal philosophies get in the way of their political constituansies. How do you get behind saving the big auto makers when....
autos cause global warming.
Auto makers are corperate robber barons of the people.
Saving big business will save the republicans
Auto Industry supports Big Oil
Yet how do you not.........
Auto Workers Union got you elected
Where are you going to get all those tax dollars you claim you need.

The plain and simple truth is the unions have fleeced the auto makers and they can no longer compete in a world market. Until they can get out from under these contracts they will continue to lose money and fail. Chapter 11 is the answer to the problem. A simple reorganization will restore cash flow and return the auto makers back to the business of making cars. The union workers will have to decide if having a job and a future is important.
Yes, I realize that millions of Americans will take a pay cut and probably have major finacial challenges. They will still have a job and millions of people beyond them who supply all those parts that make up the cars will have jobs as well. Most of them won't take a pay cut only suffer a benifit cut on future pensions and such. Close to one third of the labor costs to the industry falls into this catagory. We can save the many and get our econemy rolling again as well as be able to price American goods comperable to their foreign competition.
The American auto industry has come a long way in making quality cars that can compete in the market place. They can surely accell if some of the finacial burdens can be lifted.

Congress may be looking at the wrong type of bailout for the auto makers.

No On Taxpayer Bailout of Auto Industry, Say Free Market Economists

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Anonymous Perri Nelson said...

If the automakers see bankruptcy as an unacceptable loss of their ability to control their own destiny, what do they expect to see out of the money they're begging congress for?

The notion of an "Auto Czar" as proposed by the President Elect looks to be yet another extension of the socialist agenda. You know the one -- the part where the government takes over the means of production...

And people think we aren't a Socialist nation...

5:34 PM, November 13, 2008  

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