Will our government bail out the Big Three or not? On one hand, I think that the automakers should be bailed out, but on the other, I think that those workers could get jobs for foreign automakers with plants in the US. It is a very sticky issue because there are so many things to take into account. I think that the government should bail out at least GM and Ford. I think this because Chrysler pretty much started going bankrupt at the beginning of last year. The reason the auto companies should get the bailout money is because it would hurt the economy badly. There are estimates that if the auto companies failed that it would cost the economy over three million jobs. That includes the workers who manufacture the cars and for the workers who manufacture the parts that get put into the cars.
On the other hand, every auto company, foreign and domestic, have had huge chunks taken out of their sales. The reason that companies like Toyota are not complaining is that they have U.S. manufacturing plants in places where unions cannot form and be a thorn in the side of the automakers. The good news is, since the dollar is terrible, this is attracting foreign automakers into the country because they can produce their cars cheaper. If the Big Three go down, then there will be a decrease in the number of cars produced, so the foreign automakers will step in, and everyone who lost their jobs could easily find work doing the exact same thing that they did before.
There is also something else that I have noticed. GM and Chrysler say that they will certainly fail if the do not get any money. But Ford is the only one that said that they foresee themselves becoming highly profitable in a few short years. This means that the only company that could repay the $32 billion that they government gives them would be Ford. You do not lend money to someone who is not confident that they will be profitable. GM and Chrysler need to show that they can make a profit and are making changes to get there.
Whatever happens, there will be winners and losers. Either the auto companies win and the government loses, or both win, or both sides lose. It is a very confusing time to be an American because their are so many things that would go wrong no matter what decision is made.
Saturday, December 6, 2008
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2 comments:
Trent Liljestrand posts the question “Should we bail them out?” and I have filtered this in my head as well. I was totally blown away when I found out that such a large amount of rescue money was only going to be divided among three top dog car dealers. Two out of the three have stated they cannot promise a loan payback in a reasonable timeframe or at all for that matter. Ford is confident they will profit in the next few years and have no problem returning the favor.
What in the world is going on? We are designating bailout funds for foreclosure prevention, or shall I say foreclosure prolongment? Now we are loaning funds to salvage car dealerships and manufacturers? What’s next?
I agree with Trent that this issue has both pros and cons in relation to our economy, mass production, jobs, etc. Either way there is going to be a significant impact. One possible impact that is most likely is the companies being sold to foreign corporations and run on U.S. soil. Another impact could be that more vehicles would be produced in larger quantities, turning profit and retailed cheaper.
My opinion is that we are supposed to be united and one under God. If the monies are available and U.S. Companies are pleading for help, give it to them. Was our goal to succeed or plunder? The United States Government should, by all means, do anything in their power to aid in the success of our country. Either way we win some and we lose some. So are we going to continue to help others while we suffer, or are we going to start helping each other with issues on hand and rising here, at home?
“It is a very confusing time to be an American because their are so many things that would go wrong no matter what decision is made”, says Trent. You said it, couldn’t have done it better myself. Damned if we do and damned if we don’t. Time to pull together and bail one another out is here. We are all neighbors and it’s time we start acting like it and lending a hand to someone in need. Personally I love my mustang and I want Ford to succeed, they are one of the largest car manufacturers across the nation that we have. Love them or leave them. People need to stop being so bitter and realize that these issues are very critical to their future and the future of our children. Peace, Love and Happiness! Vote! Let your voice be heard! Great job Trent!!
First of all, how much in debt are we already? Somewhere in the ballpark of $10.6 trillion.... You know that that averages over $34,000 per person.... I can't even imagine that much money. Our government just spends and spends. How are we going to pay this off? Can the US as a whole go bankrupt? Can we keep affording to bail everyone out? Or better yet, should we?
Keeping this in mind I honestly have no problems with bail outs, but only if they are thought through. We are in a recession. So, what do people do: they stop spending. Which makes it worse. Which means no one is buying new cars. Especially expensive gas guzzlers. Now we have three big car manufacturers (GM, Ford, and Chrysler) asking for about $34 billion in loans to get the to...wait for it...2010. That's it?!?! So, basically if the market stays the same all that money will be wasted come 2010.
Instead of bailing out all these CEO's and big businesses how about we do something more unorthodox? For instance, why don't we give each family earning under half a million a year $50,000? You can change around the numbers if you want, but keep the principal the same. Give the people who are suffering the money. What does this do? It adds zeros to people's bank accounts which in turn gives them more money to spend. "Spend on what?" you might ask? How about a new car?
The US has the biggest difference in wealth distribution. I am sick and tired of seeing a very small percentage with all the wealth living a lap of luxury while there are so many people without food or shelter. Stop bailing everybody out. Give it to the people who need it most.
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