Automakers Bailout

My intention is not to turn this into a **** red vs. blue debate. So, let's not go there, k?

Anyway - how do you feel about the dems pushing for a government-backed bailout?

I say - **** the dems (hey, I vote democratic, FWIW) and let the big three figure it out for themselves. They've seen it coming for a long time... Let it be what it is, and maybe some good will come of it.

Sure, jobs will be lost, general chaos will ensue, but that what economic downturns are all about. I don't think it's our governments duty to fix their problems - they don't have real money to do it anyway.

I don't agree with it, but I think it needs to be done. They are the backbone of this country.

I say no. While I feel really bad for all teh employees. The only reason they are asking for a bail is because they saw the gov do it for the banks. So now there are two companies. THen more. Then 5. 9. Etc.

Businesses should be survival of the fittest. That is when businesses that are doing things correctly and smartly survive like they should. And ones that are run poorly die. And then give more good businesses a chance to get in there.

there would be way to many people out of job sending us farther into depression, they have been bailed out before it will happen again. They are more of an image of the US than anything and they wont let that just die. Unlike honda, nissan, and toyota they didnt change with the times instead they built huge cars and trucks that nobody wanted while everyone else changed with the flow and survived. Its kinda **** if they do **** if they dont.

justinwebb wrote:

Unlike honda, nissan, and toyota they didnt change with the times instead they built huge cars and trucks that nobody wanted while everyone else changed with the flow and survived. Its kinda **** if they do **** if they dont.

And that is exactly why I think they should not be bailed. They were dumb as **** to do exactly that.

Sorry.

On one hand I say let all the weak companies fall.... Depression is almost a natural way to clean up the economy.

On the other hand I see how many jobs are at stake. I live in STL and we just closed 2 Chrysler plants (dodge ram/caravan) in the last year and 3 years ago closed a huge ford plant that made the explorer. I work at a union store (grocery not automaker) and I feel bad for thousands of people who lost there jobs, there told to buy American all there lives and Chrysler closes there plants while they just built a new state of the art one in Canada, while the one in America sits idle with no plans to become active... I find that extremely shady.

I say only bail out the companies that will keep the jobs in the US. If they want a hand out while there constantly taking all our jobs across the border I say **** em, let em ask whatever country there in for help... see how they do then.

Wait, is this the same bailout they did like a month ago?

All companies who export jobs fail.

Microsoft to begin with.

There should be a much higher penalty to american buisnesses who take away jobs to overseas.

I'm against it. Everyone will be dependent on the government bailing them out if they don't suceed. It's not the governments responsibility. It's the businesses.

If the Big 3 fail, wouldn't the "foreign" cars take over the factories and the employees?

Also, if you look at some of the stats, many Hondas and Toyotas employ US workers to build the cars, but many US companies hire Mexican and Canadian workers to build the cars...

this is really a lose-lose for the government, theyre damned if they do and damned if they dont. the auto industry is no doubt a large part of our economy and job force. we need them. BUT the government doesnt need any more bills to pay. its a very lousy situation. i'm honestly 50/50 on it.

coolbam wrote:

All companies who export jobs fail. Microsoft to begin with. There should be a much higher penalty to american buisnesses who take away jobs to overseas.

That's a good idea, further increase the production cost of the vehilces so there's less profit margin and auto market goes further into debt.

If you penalize them for building overseas, you place a direct tax on them. They will in turn either make less profit (not likely) or pass on that extra cost to you the consumer by raising prices (more likely). The increased prices causes people to choose the alternative (foreign vehicles) because they are cheaper and better. Either way, the auto company will lose money and go further into debt.

If they do keep the jobs here, they are forced to pay higher wages to the workers which still results in increased production cost. This cost either eats into there profit margin or is passed along to the consumer. The result is the same, less profit and more debt for the Big 3.

So by "penalizing" them, you would only be driving them out of businees sooner. Errr, I should say, you would only be forcing the government bailout sooner.

Maybe America should lower their business tax then they won't have to worry about people exporting jobs where they only have to pay 4% business tax.

My solution:

Ban the purchase of foreign cars and make people buy American for a couple years til they bounce back

^ f that

An interesting perspective from folks living near a Honda plant in OH:

http://www.cnn.com/2008/US/11/20/honda.town/index.html