Why doesn't the government give more money to the automotive companies?!?!?
Forget AIG, help general motors and all the other big automotive companies. If AIG goes under, then everyone can just switch insurance companies. I'm not saying to leave it behind, but most of the money being rushed to the largest insurance agency in the world could be helping car makers which would be far more beneficial. If the car industries go down, nearly 3 million jobs would be lost. That is another depression. So why?
- Anonymous1 decade agoFavorite Answer
If their problems were mainly due to the current economic climate I would agree with you. But they aren't.
The big three automakers have been failing for many years because of gross mismanagement and failure to plan for the future. Even now they are still trying to defeat efforts to make their cars more fuel efficient. They stupidly keep making cars people don't want to buy.
We should help them, but to get any help I would demand that the big three must:
-Drastically cut back on expenses; i.e. immediately drop production on their losing models.
-Slash exec pay/perks (I seem to remember that Lee Iacocca took a token salary of $1 until Chrysler improved.)
-Rewrite the UAW contract.
FYI - AIG is an immense Insurance company far bigger than the big three automakers put together.
If AIG sank the ramifications would be as great, or greater, than a big three failure.
- 1 decade ago
AIG is more than insurance both are needed. But you're right that is a lot of jobs but if they save them and people still don't buy American it's just putting off the inevitable. All I drive and own is GM cars. What can they do to become more competitive in the Auto industry. Maybe they can give the customers a kickback for buying GM if they bail them out
- 1 decade ago
If you had a business that you mismanaged, should the Government give you money? Doubt it.
How can they change the rules of the game? Capitalism is the reason for most of the troubles in America, not saying that I am against it but rather pointing out a fact.
It is not fair to say to poor people "oh well" when they request help, and then turn around and give money to Big Business. Granted, not everyone in the industry in getting rich, and the UAW is not at fault for unionizing labor because labor only factors in to 10% of the car price.
These companies were mismanaged for many years. They sold overpriced cars that nobody wanted to drive or could afford to fuel and maintain. The free market system allowed the Asian auto makers to setup shop in the south, selling their cheaper cars to many Americans. They use labor that is not union because they went to a part of the country where people didn't have work.
So if you sold something that was way overpriced and nobody wanted it, should the Government come bail out your store at the mall?
I have heard them say "too big to fail". That only implies that you can be small and fail. Whatever happened to rules?
- johninjcLv 61 decade ago
They will vote on giving some money to the automakers. The reason that it will not work long term is because the automakers are not making automobiles that people are buying. Something needs to be done but giving them money will only allow them to survive until the money runs out if they do not start selling more automoblies. With the economy like it is people who are going to buy new cars will probably buy smaller imports that get better mileage. We have to realize that we can not just give everyone money to run the economy. First of all we are $10 trillion dollars in debt. The government is in no finatial shape to be helping anyone.
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- Ed FLv 61 decade ago
Domestic auto makers have failed on their own, not as the insurance companies that suffered losses due to the actions of others.
Domestic auto makes and the unions need to get realistic as a
US car has $2,000 in benefits in each car while imports have around $500.
If we throw money at them we will just be buying time until they need more.
- Anonymous1 decade ago
GM was talking about buying out Chrysler....but, now they are broke?
They hurried up and had to vote on the bank bail out but, instead of loaning money some banks are buying out the smaller banks?
I need foreclosure help and when the government gives me the money to buy my house instead I buy another house then rent it out...if I did that I'd go to jail. I wouldn't be commended because I stopped a foreclosure of another home. That's the crap the media is trying to sell.
- 4 years ago
It's a question whose answers can be questioned,no matter what answers are.A state can' be expected to fund 100% higher education due to various valid reasons,where as it can't stop throwing money at companies due to political and economic reasons.Yes, it's short sighted but a compulsion all the same.
- westsidaLv 41 decade ago
I thought the govt was already planning to give a bunch of money to the auto industry, esp. Ford and GM.
- 1 decade ago
They need to learn how to make a car that gets good gas mileage at a reasonable price. Instead they want to keep making gas guzzlers that sell for $50,000 dollars.
- LoftyDogLv 41 decade ago
Because it's unpopular with the taxpayers. Why should they bail out the big three, the reason they're not doing well is mostly their own fault. Many taxpayers don't want it so lawmakers are weary to support it.