Wednesday, November 19, 2008

Thoughts on the Auto Bailout

Strangely enough, I actually agree with Red Stater in that I do not support the auto bailout either.

Although I think his thoughts on the government owning the auto industry and his perspective on an anti-utopian automotive world, I do not think that by bailing out the auto industry, prices on cars will go down or that they will force themselves into producing cheaper, more fuel-efficient cars.

Also, while I disagree with his anti-union position, I don't like the idea of the taxpayer's money being spent to bail out these anti-worker mega-corporations.

I was watching C-Span earlier and they were airing the Senate hearings with the top 3 auto makers.

Not once in their speeches did I hear anything that supported a position that if they were bailed out of the financial situation, they would create more jobs. I did hear, however, talk of more downsizing.

What I think is, if they get this money, they will take it pocket it, close down more factories here in the states, build cheaper factories in third world countries, hire cheap sweat shop style labor in those foreign countries and figure out some way to make a profit that way just so their stock will go up a half a point or so.

So on one thing, Red and I agree. Say no to the bailout. Let me figure their business problems out themselves.


  1. yahoo we agree!!!... sorta.

    seriously otter, unless we can get the union stranglehold off of the big 3 they cannot survive no matter the bailout or bailouts.

    Unions force our auto mfr's to pay an average of about $70/hr while honda and toyota only pay about $37/hr average... in addition the big 3 are forced to pay an average of $2,500 per car in additional benefits that honda and toyota don't pay...

    They can't make a car that competes in price or performance with those handicaps in place that UNIONS have demanded and will NOT back off from.

    The UNION will not negotiate the things required to allow US automakers to compete... thats as plain and simple as it gets.

  2. Don't tell anyone, but I agree too, but not for the same reasons as tater.

    I am tired of rewarding and unwilling to finance companies who are not forward thinking enough to plan for the future and run their companies in to the ground. That includes the banking industry and their mess.

  3. Yeah amazing that we agree on something Red! LOL!!

    However, I think we are just going to have to agree to disagree on the union issue. I think unions are important. Maybe not nearly as important as they were back in the days of 6 day work weeks and 18 hour days but I still think they are important to our country's working people.

    The problem between the unions and the auto makers is that both sides have gotten too greedy. $70/hour to work an assembly line? Okay, that is a little excessive but that is no reason to dissolve the union. But at the same time the auto makers are too greedy too. Remember that the CEO's of these companies are probably making closer to $1000/hour! (I don't really know, I'm just guessing) I think these two institutions need to get together and do some REAL negotiations.

    In any case, NO TO THE BAILOUT!

  4. I'm telling EVERYONE Maria! LOL!!!

    Hey everybody, Maria disagrees with the auto bailout!!! LoL!

    But seriously, I think you are right. Banking institution or auto industry, the people running these companies are responsible for their own messes and they should be held responsible, not the taxpayer's.

    Just another example of corporate welfare.

  5. OK. I have to say one more thing before I set this aside. I find it rather hypocritical that these industries what help with their messes, yet if Congress decided to spend that money to help the American people (not corporations), half (or more) this country would be in an uproar!

  6. amen to that sister!

  7. Look - we just need to give the bailout money to the auto workers and allow them to buy the company and run it themselves. Seriously. It's pretty much that simple. Bypass the CEOs by allowing the workers to own the company, sit on the board, and elect a new competent management team drawn from the ranks of the people who actually build the cars.

  8. I’m with Maria and Otter on this one. Completely blaming the unions is far too simplistic an answer (and way too convenient for those who are anti-union). Are the unions partially to blame? Absolutely, but so are the CEOs and the consumers for continuously buying things like Hummers. I mean seriously…what does ANYONE need with a military grade vehicle? Detroit is now suffering from a pile of crap that they have helped to dig from the really big hole that they find themselves in. Lord knows that I do not want those companies to fail, but they need a serious reality check and restructuring in order to keep up with the Honda’s and Toyota’s of the world. It would also help if the designed some cars that lasted 200,000+ miles (I had an Oldsmobile that died at about 120,000 and it was only four years old).