Sunday, November 23, 2008

Financial Bailout

Everybody I have talked to seems to be screaming "no" to the automotive bailout. This comes on top of the massive financial bailout of the mortgage crisis. There is an astounding discrepancy between the view of ordinary Americans and Washington leadership. These bailouts are alleviating any responsibility from the irresponsible banking processes - highly leveraged mortgages. At the root of the crisis is the desire for Americans to live beyond their means - cars, houses, property are not rights - not entitlements - but fruits of long hard work.

The democrats and president elect seem to be most in favor of the massive bailout of the big three auto companies - being bound to the unions - The taxpayer will pay a frighteningly high burden to very temporarily sustain the auto companies. The billions of dollars poured into auto companies from tax payers does nothing to address competitiveness and the root causes of the trouble facing the economy. The ingenuity and inventiveness of engineers and American labor ought to have free reign. Cars made in the East are produced from essentially slave labor. Eastern cars makers are pumping out high quality cars for cheap. There is little chance for American auto companies to stay competitive with the slave-labor produced cars from the Asia. To compete I would put those in the the American prison system into automotive factories to exploit our own free labor. American auto workers would maintain their positions, taking more specialized jobs to bodly compete with a higher product.

1 comment:

  1. On the one hand, I think the bailout is essential if we want to see auto companies in America, specifically in Michigan. When they suffer, we suffer in Michigan, and our economy is terrible. On the other hand, you're precisely right that the root of the problem is prodigal living. I have a friend who I visit often when I come to michigan, but I am astounded at what they buy. This year, I found a new washer & dryer, a new car, a new giant plasma TV & sound system, new video game things, etc. All at a time when their father almost was losing his job. I wonder how much they have saved for the future?

    I would guess that Michigan is one of the leaders in this prodigal living that goes beyond their means. There is no entitlement, whether you have a union or not. In this new economy you might not be able to have a house and a cottage, snowmobiles, jetskis, 2 cars and a truck anymore. Credit cards are not free money. Somehow, our view of life and finances needs to change. Some situations call for borrowing, no doubt about it. Student loans are investments in the future. House & car loans also, for these big purchases of necessities. But TVs, video game systems, speakers, extra cars, appliances etc? We must live within our means. "You might not always get what you want when you want it."

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