Question: Isn't the Auto Bailout Un-American?


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Answer #1:

This is happening because american car companies cannot make cars as well as asia or europe. This is a fact and this is why all 3 are going down at the same time. Not just GM but Ford and Chrysler also. They need to rethink their entire business if they are going to survive.

Answer #2:

None of these bailouts would be necessary if the liberals in congress would confess that they promoted the idea of making loans to people who couldn't afford the payments (Community Redevelopment Act) and from that seed of stupidity, all sorts of bad loans resulted, paper based on these bad loans, insurance on the paper, etc. until it basically ruined the financial system.

Barney Frank and Christopher Dodd, and several others should be in handcuffs, and prosecuted for fraud, misrepresentation, malfeasance, lying to the public, and abusing their power.

But now that the Dems have control of congress, the real source of the problems will never be investigated, so we all suffer.

Regarding the auto companies, many US companies make trucks and larger vehicles used in commerce (Ford 250, Chrysler vans, Ford vans, GM trucks) and they ruin the cafe standards (mileage requirements put there by our wonderful liberal congresspeople who think they can legislate MPG with the stroke of a pen and resulting law).

Foreign companies make smaller vehicles in the main, so can meet MPG requirements easier, and they don't cater to the many small businesspeople who need trucks, vans, specialty vehicles to do their work.

The problems were also created by unions that demand full medical, high pay, and large retirement packages.

Right now, there are 4 or 5 retired auto workers for every 1 working person in the auto industry, and this is bankrupting the system. As fewer people are in the labor force, and more retire, the entire system is going to collapse. The auto industry is just the beginning of more failures to come as we recognize that all the promises made over the years have no funding to pay for the promises, so bankruptcy (reorganization) will result.

The younger generation will soon find out that all the wonderful promises of folks like Obama are simply too expensive, and there is no money, even taxing the rich who invest in job creating companies can't fix the financial problems.

Life has been great, now we face the reality that faces all countries with stupid leaders who tax and spend their way into bankruptcy, as our liberal representatives have done.

But it gets them votes, and that's their only concern.

PS: National Defense is not the problem, although the dems would have you believe it's our biggest expense. it's not. Further, national defense is non-negotiable, so those who look to lowering military and defense budgets are simply hoping everyone else in the world will sit back and be nice. It's just not that way. But all the social welfare programs are negotiable, but nobody wants to reduce them, so they are the ones that are taking us down as a nation.

What's un-american is asking your fellow citizens to pay for your problems. It's always "what the government owes me" and remember, the government means "other taxpayers with brain-dead representatives who don't know anything about creating products, jobs, or delivering a standard of living."

America was founded by people who took risks, and didn't blame others for their failures.

Answer #3:

Why haven't the union leaders cut their own pay, staffs & benefits, they convinced the workers to.

The problem with bankrupting the Big 3 isn't just the horror of what will happen to the company & the unions, it is the reality of what will happen to their suppliers.

For the past 10 years, the unions & Big 3 have decided to off shore over 50% of their suppliers to China & other third world countries. This loss of millions of good jobs is what set the current crisis in motion.

When one of the Big 3 go bankrupt, and they will, it is going to completely wipe out the remaining suppliers.

And that is millions more jobs, gone overnight. Then those job losses will continue down the line all the way to every single other company in the country.

Because our government and the "experts" refuse to see what off shoring has done to our country and our futures, this recession is going to be long and painful.

And, I truly believe, will be known as the true "Great Depression".

All other downturns offered one thing, jobs to go back to. Our jobs are not coming back--ever.

Good luck to us all.

Answer #4:

Where did you get 2 million from? They make closer to 45 or 50 million.

There are 3,500 "workers" in the job banks program that are earning 100% of their salary plus benefits after being laid off. They show up at the jobs bank and play cards all day. They have the option to collect only 85% of their pay plus benefits if they choose to stay home and not go to the jobs bank each day.

In any case, I agree that the industry should be able to get out of this themselves by building what sells, but they have to shed the outdated unions and their outrageous agreements.

The CEOs should cut the fat. They need to hire cheaper labor and and build what sells.

All that said, government LOANs will probably go forward. There are too many employees, dealerships, taxes, vendors, etc. at risk. Letting the industry fail or flounder would be bad for the country.

I hate bail outs, but I would hate to see all the industry associated with automotive factories die out.


By the way, have you seen the huge gleaming UAW office building?!?!?!

The auto industry is not only paying their employees to much, they are paying for the entire UAW and all of it's costs. Trim the fat!!!

Answer #5:

Believe it or not, the CEOs wallet and the company are the same. This is because when they become CEOs, they are required to invest a certain amount of their personal money in the company so that their personal goals and the goals of the company are the same.

CEOs salary are that high because if they don't they will lose the quality leadership and the company would be in worse shape than what they are now.

Yes, I don't think we should bail out the automakers. There's no reason why all 3 have to continue to exist. Let 1 or 2 of them close their doors. However, the problem is all of the automakers suppliers and their suppliers. They will also get hurt. It is a fine line since there are alot more at stake then just the three automakers.

Answer #6:

I agree with you. And yes. It is un-American. America is built on free enterprise. If you or I were to go buy a big house and decided that we wanted to keep all the money that we made for ourselves and not pay the mortgage, do you think they would come bail us out when the bank seized our home? No. And they shouldn't either. The CEO's need to come off some of that money and use it to keep their company alive.

Answer #7:

I agree with DrT. Congress need stop trying to design cars and do what they do best very little. The Constitution says that congress is responsible for the funding of the military

Answer #8:

Beg 3 sealed their fate by shamelessly begging for handouts on the same day we learn 533,000 Americans were layed off in one month!

It ain't worth $34B to preserve 100K jobs. That's $340,000 per job saved. Not worth it.

Answer #9:

this bailout is 'shock and awe'

it's such a huge robbery, that most Americans cant comprehend it

so far, it's about $100,000 from every family of four

Answer #10:

Whats funny is the $700 Billion the banks got for their foolish mistakes with no questions asked. both parties made mistakes to get where they are.
The banks effect Wall st and the Autos hurt the "main st", a better question is why are the big 3 getting grilled and not the banks? Especially when you compare $700 billion to $35billion!





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