Comments on: Who Should Pay For Fuel Efficient Car Plants – Big 3 or the Federal Government?

By: Dr. Paul A. Curto

Dr. Paul A. Curto — Wed, 17 Sep 2008 21:51:43 +0000

As to the lost jobs at the “big 3″ which are now much less big, thus lower case, I say that they can be given jobs in the new alternative energy industry instead. The money that was intended for bailouts would instead go to building a sustainable industry in wind, geothermal, solar, ocean, and biomass production.

Who knows, maybe we’ll build those “ultimate cars” that I dreamed about. Detroit management never had that much savvy. I’m sure that it’s workers do, though.

By: Dr. Paul A. Curto

Dr. Paul A. Curto — Wed, 17 Sep 2008 19:20:01 +0000

We should let all entities which fail to adapt and to invest in a future that includes the well being of America become the victim of its own ineptitude.

This applies to all the Wall Street bailouts, which if memory serves, only bails out the hedge fund investors and foreign banks, not the mortgage holders that were screwed by these thieves.

I am against bailouts unless they serve the public interest. To me, that would be the United Way or the Red Cross.

By: Kyle Varner

Kyle Varner — Tue, 16 Sep 2008 19:37:19 +0000

It may seem on the surface like it would be bad for the big three to fail, but if they are not able to efficiently compete, the cost of subsidizing their continued operation would be far higher than their continued fall. The only way for the federal government to give these guys a low interest loan is for the federal government to print the money out of thin air. That will drive the dollar lower and rob every one of us of spending power.

If they are not able to maintain a profitable business on their own, their employment of workers represents a misallocation of resources, which, in the end, is actually bad for the economy and results in a net loss in jobs (because other sectors of the economy which are profitable do not grow as quickly due to the burden of the unprofitable auto manufacturers).

The only thing that can come out of this sort of deal is lots of folks losing a lot of money.

One more thing: if we can get cheaper cars from overseas, why pay more for them to be built here? That would diminish the quality of life of everyone who buys such a car. If we’re buying American cars just because they’re American, we’re just handing auto workers welfare checks for the difference between their wages and the prevailing wage wherever the cars can be made cheaper.

This whole game will benefit a few people at the expense of everyone else.

By: Evan

Evan — Tue, 16 Sep 2008 12:17:09 +0000

They could use the money to re-train workers for viable and sustainable industries.

They could provide the money in return for shares. Why shouldn’t tax payers invest instead of just giving money?

They could work with the communities to find local viable alternatives.

There are other options.

By: Car Tim

Car Tim — Mon, 15 Sep 2008 22:03:26 +0000

GM has 263,000 employees, Ford has 246,000, and Chrysler has 72,000 employees.

That’s a total of 581,000 employees without even thinking about all the suppliers that can go under too.

Are they too big to fail from this perspective? Maybe the economy needs to find these people jobs that have a net contribution to the economy, if the car business is not profitable anymore.

By: fuel additive

fuel additive — Mon, 15 Sep 2008 20:58:55 +0000

It really is one of those issues where you can clearly see both sides of it. But it seems like we have also become a country where you shouldn’t be allowed to fail. If a company makes bad decisions, shouldn’t they have to figure it out? It really is a hard thing to decide on.

By: Brutus

Brutus — Mon, 15 Sep 2008 12:30:50 +0000

The strength of the country was built on capitalist endeavors not supported by the central government. Intervention in the markets always hurts in the long run. The bailout of Fannie and Freddie will cost taxpayers dearly in the out years while the benefits will be short term.

The automakers are not caught unaware. They have known since the 1970′s that fuel efficient vehicles would be a must for the future. What we have now is the result of their own poor planning. Allow the markets to operate without intervention and we will see stronger businesses and a stronger economy.