Recent news has shown that once again, the American people are right & our elected representatives are wrong. The multi-trillion dollar bailout of our financial system has done nothing to alleviate or correct the underlying problems facing our economy & now the financial institutions are calling out for further cash injections. All the while they are using taxpayer's money with little or no transparency or accountability.Next on the table is a bailout for the US auto industry. What next? Surely the airlines deserve some relief? What about the credit card companies, hotel chains and home builders? The list is endless. During the good years many US companies grew lazy. They built high risk accounting schemes, signed unworkable labor agreements, produced substandard products & paid their executives fat bonuses. These times are gone & it is not the job of the US taxpayer to wipe their noses, pat their bottoms & send them back out to play again.
The auto industry does not have the management structure or R&D pipeline to make our investment sensible. They are years away from producing the type of vehicles already available from Asian plants. They ignored long term trends in the energy markets for short term, easy credit fueled profits. I see no reason why they would be able to compete any more effectively with our money than without.
Update : Apparently CBS agrees with me.
1 comment:
I agree with you with perhaps one caveat. One of the arguments I've heard is that letting the big 3 fail would tank so many jobs and symbiotic industries that it might push us further into the brink. But, heard that one before, right?
I could see Obama using this as an opportunity. Something like this:
"Ok, GM, Ford, Chrysler. You've been very short sighted, irresponsible and downright naughty. So, if we are to help you out, we need some iron clad agreements, (as well as future tax payer repayment dividends) on retooling for green cars, buses, and other possibilities, with a 'Put a man on the moon/Manhattan Project' priority on it. You retooled super quickly for WWII. Why not now? Otherwise, no dice."
Just a thought.
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