Does this seem about right for the auto industry bailout?
In most pro sports, the losing-est team of the last season has the first picks from the next years' draft so as to stimulate a balanced competition between a variety of teams - there are also spending caps so as to also not overload one or two teams, otherwise within a couple years it'd obviously be simple to have one or two teams that just dominate the entire NFL for instance, and then continue to dominate, because those teams would most likely have the most perpetual revenue - then suddenly people lose interest in watching two teams dominate the entire sport - wane from boredom, from real competition
it seems that's basically what the auto industry has been over the past 50 years or so - electric cars have been designed and built for decades, cars have been built to run on ethanol since, well since Ford built his Model T because that's what he built it to specifically run on..
but by and large, in terms of government funding, contracts and tax breaks, the "Big Three" have utterly dominated - squashing the true viability of any competition in the market
now, that they're hitting a major "losing streak" how can it be considered fair to grant them even a larger advantage now that alternatives have begun having viability by their own ingenuity, creativity, and demand
the comparison to me seems quite valid
and the idea of a handout to them seems laughable - like giving the Patriots a $100 million handout and top draft picks because they didn't have a three-peat in 2006
and then if a bailout goes through -- shouldn't we taxpayers each get stock certificates?
I fail to see how giving out "corporate welfare" to an obviously failed business concept will "provide jobs" - it's only providing handouts
- Anonymous1 decade agoFavorite Answer
I couldn't agree with you more--espicially on the issue of stock certificates to ALL TAXPAYING Americans!!! And you're right about "the Big Three" automakers successfully creating lines of ethanol fuel and electric powered cars--and keeping their secrets locked away for decades; they made cozy bedfellows with American Big Oil.
And you know what they say about bedding the Devil........
I doubt "the Big Three" are anywhere near critical financial straits, given their gleeful years of receiving juicy mega-billion dollar Government grants. Once the successful mass sale of electric cars and trucks hits showrooms---"the Big Three" stand to make behemoth profits beyond their wildest dreams; so they should spare the woeful pitch they'll quickly pay back the "bailout loan".. get up off their azzes and mass sell electric cars.
If there's any faults existent within "the Big Three", I see 4 reasons:
1) They grew too big, too fast---and got too greedy. They carried on for years like they were indestructible gods---hiring too many employees and spending way too much on equipment overhead.
2) They allowed total deregulation of their auto dealerships--who were equally spend reckless, greedy----and unscrupulous, rife with deceptive retail pratices. Dealerships gave "sales incentives" to their dealers--who got very busy scamming customers and hiring mechanics who had a "how much you got, boyahhh??" idealology when it came to per hour labor fees and overpriced part fees.
Who'd ever thought their greatest auto sales / service enemies would be those plentiful "pre-owned" car sales lots with fair sales / service pratices??? Who says nice guys don't finish first???
3) Bad overseas investments made. Dealerships inter-networked with their "Big Three" headquarters and together, they made some dumb overseas investment decisions that left them ripped clean off. And the lesson there kids is: Automakers should not dabble in banking.
4) The automakers are held as weak hostages to their American Big Oil bedfellows. Bad things can happen to your corporation IF you hint at mass sales production of alternative vehicles and electric powered vehicles; these vehicles pose serious threats to Big Oil profits.
I'm sure any one or all these reasons are being worked by "Big Three" lobbyists as "plea pitches" to Congress for bailout loan approval. But given their Republican domination of the auto market, it could be a slim chance they will get their juicy bailout $$$$.
And even if they were to get it, their woeful problems will still be there---evolving to grow larger and worse. They'll be better off defying Big Oil and mass selling electric and ethanol powered vehicles.....and they better get it done on the ASAP.
- Anonymous1 decade ago
I propose To Let the GM employees decide the fate of our nation in this way: Since government has already decided to dump 850 billion dollars into "the economy" to revive it. I say that every GM employee should line up and mark one of two boxes.
Choice number 1-bailout GM, some banks and lose the rest some where.
Choice number 2-give everyone in the United States a suit case with 2 million tax free dollars in it. However the employees decide to go we'll go with em. As the 850 billion dollars bailout goes, the two million dollar suitcases only get us to about 620 billion. I like the suitcase idea, I think the GM employees will too.
- Anonymous1 decade ago
Say, unlike your anology of the Patriots, are you forgetting that there are millions of people that will lose their jobs. Besides unlike wall street for the benefit of rich stockholders, this is not a bailout, but instead a loan to the car industry. So helping out wall street is OK and helping out main street is not? Any ideas on how we can put 3 million people to work real quick? Forget about football!!
- 1 decade ago
That's fine. This country will just lose 10 billion jobs and no longer make automobiles. That will be great for our economy.
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- VIOLATED..!Lv 41 decade ago
i just had Lunch at my Favorite Local Sports-bar today~!Source(s): me!