My Take on the Automaker Bailout
The proposed bailout of the major three US automakers has been all over the news lately. For those of you who may not know about it, they are proposing to give Ford, GM and Chrysler 25 billion dollars to mitigate cash flow and operational problems. I am strongly against the bailout for reasons that I shall discuss here.
What proponents are arguing is that these three automakers are essentially the entire US auto industry and if they fail there will potentially be 5 million people out of work. They need to realize that this is not the case. If one, some or all of these automakers declare bankruptcy they will be required to restructure and make operational changes under supervision of the courts. Will some people lose their jobs? Yes, however it will not be all 5 million as I can guarantee their operations will continue. Bankruptcy would be a good thing because it will trim up their workforce, make it more efficient, release them from the strong grip of workers’ unions and promote the much needed innovation that they have been severely lacking.
US automakers have been behind the times for quite some time now. Foreign automakers have surpassed them in sales and reputation. The CEOs and executives of our country’s automakers have been too hung up on their pride and the idea that American’s are all about the bigger is better philosophy by producing big, gas guzzling cars instead of investing in new technologies and alternative fuels. If they receive this bailout then it will be looked at as a slap on the hand and they will continue as they always have. If they are allowed to fail (as they should) they will be forced to trim the fat and innovate in order to remain competitive.
Our government should not in any way compromise innovation in our economy and industries by bailing everyone out. First a $700 billion bailout for the financial industry and then a $25 billion bailout for the automakers. Who is next? Where does it stop? I should not be responsible for bailing out poorly managed companies, you shouldn’t be either and neither should the taxpaying American public. Let these companies learn from their mistakes and better themselves. If they are unable to do this, then there is no place for them in the competitive marketplace.
What are your thoughts and opinions on this matter? Please post comments here or email me at james.plotnik@gmail.com.
What proponents are arguing is that these three automakers are essentially the entire US auto industry and if they fail there will potentially be 5 million people out of work. They need to realize that this is not the case. If one, some or all of these automakers declare bankruptcy they will be required to restructure and make operational changes under supervision of the courts. Will some people lose their jobs? Yes, however it will not be all 5 million as I can guarantee their operations will continue. Bankruptcy would be a good thing because it will trim up their workforce, make it more efficient, release them from the strong grip of workers’ unions and promote the much needed innovation that they have been severely lacking.
US automakers have been behind the times for quite some time now. Foreign automakers have surpassed them in sales and reputation. The CEOs and executives of our country’s automakers have been too hung up on their pride and the idea that American’s are all about the bigger is better philosophy by producing big, gas guzzling cars instead of investing in new technologies and alternative fuels. If they receive this bailout then it will be looked at as a slap on the hand and they will continue as they always have. If they are allowed to fail (as they should) they will be forced to trim the fat and innovate in order to remain competitive.
Our government should not in any way compromise innovation in our economy and industries by bailing everyone out. First a $700 billion bailout for the financial industry and then a $25 billion bailout for the automakers. Who is next? Where does it stop? I should not be responsible for bailing out poorly managed companies, you shouldn’t be either and neither should the taxpaying American public. Let these companies learn from their mistakes and better themselves. If they are unable to do this, then there is no place for them in the competitive marketplace.
What are your thoughts and opinions on this matter? Please post comments here or email me at james.plotnik@gmail.com.
posted by James Plotnik at
10:33 PM
0 Comments
Links to this post
