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Tuesday, November 18, 2008

Anyone?

I have really mixed emotions about the proposed Big 3 bailout.

On the one hand, I want companies to reap what they sow, and I wish we'd let AIG follow that path as well. Can it really be capitalism if we only let the big winners win big, and never lose big? Anyway, those car companies ignored the reality of shrinking oil supplies for decades, blinding themselves to reality, so why should we have to pay for them?

However, that's not to say that I don't recognize that the people who will suffer are the employees, the line workers, the factory men and women, many of whom work for the same company their dad did, or does. The executives will be FINE. Detroit has already been hit so hard, I can't imagine how much worse it would get. I remember my friend Heather's stories about Flint before her family moved to Houston in the 80's.

How bad is this thing going to get, anyway?

2 comments:

Agent X said...

Wow - I see you are reaching deeper for your NaBloPoMo posts. And here I am just posting dog pics!

I think the problem is that if we don't bail them out we do have a large already depressed area/mass of workers that will further bring the economy down. As well as if the big 3 fail, there will be a domino effect that will pull a bunch of other companies and business down that supply parts, and provide distribution for the goods and services.

Having said that I too am tired of every industry sticking out their hand in need when they didn't pay attention to their business or change the business model when they should have. I think that any help given to the auto industry needs to be tied to specific plans to reinvent their business model - including retooling for more fuel efficient cars, etc.

I also think that any bailout needs to suspend uppermanagment bonuses until the money can be paid back. This includes golden parachutes, stock, etc.

Krispy said...

Did we bailout the airlines after 9/11? How many of them went under?

I'm against the idea of a bailout here. If they had been plugging money into R&D and moving truly forward with what consumers wanted rather than shoving money to lobbyists to keep things just the way they are, they'd be better off. Let them go Chapter 11 and reorg. at the least.