Why not bail out the auto industry?

[JonS99]

We have been bailing out individuals for years, isn't this just an extension of what we have been doing as we convert over into Socialism? At least when we bail out GM the economy sees a benefit as opposed to when spend billions a year on different welfare programs..

 

[Colleen27]

I'm wondering the same thing. We can bailout AIG so they can continue their luxury reteats, but we can't bail out GM so that people can keep their jobs and homes? Doesn't make a lick of sense to me.

 

[freckles and boo]

Where does it stop? Can we just keep printing money?

 

[Golf4food]

For the record the auto companies are asking for a loan, not a free bailout.

If the American auto industry fails the entire economy will likely collapse as a result of the problems it would cause - it isn't just one or two towns in Michigan that would be impacted - there are companies all over the US that are directly and indirectly tied to the auto industry (parts, insurance, aftermarket accessories, loan underwriters are banks and credit unions, repair shops, etc.) Millions of people will lose jobs all over the US, not just in Michigan.

 

[CapeCodTenor]

For the record the auto companies are asking for a loan, not a free bailout.

If the American auto industry fails the entire economy will likely collapse as a result of the problems it would cause - it isn't just one or two towns in Michigan that would be impacted - there are companies all over the US that are directly and indirectly tied to the auto industry (parts, insurance, aftermarket accessories, loan underwriters are banks and credit unions, repair shops, etc.) Millions of people will lose jobs all over the US, not just in Michigan.

I hate having to bailout large corporations, but I'd have to agree with the above.

 

[All American]

Where does it stop? Can we just keep printing money?

 

[jodifla]

For the record the auto companies are asking for a loan, not a free bailout.

If the American auto industry fails the entire economy will likely collapse as a result of the problems it would cause - it isn't just one or two towns in Michigan that would be impacted - there are companies all over the US that are directly and indirectly tied to the auto industry (parts, insurance, aftermarket accessories, loan underwriters are banks and credit unions, repair shops, etc.) Millions of people will lose jobs all over the US, not just in Michigan.

Yep! It would likely launch the Great Depression, Part II.

Again, another reason the auto companies can't fail is Homeland Security. We can't lose all that manufacturing capacity in case of war.

 

[jodifla]

We have been bailing out individuals for years, isn't this just an extension of what we have been doing as we convert over into Socialism? At least when we bail out GM the economy sees a benefit as opposed to when spend billions a year on different welfare programs..

I'll say the reason most don't want to bail out the auto industry is that it appears they just don't learn unless they have a proverbial gun to their heads.

They aren't lean and mean.....they are lumbering hulks who find it very difficult to change directions to stay competitive.

 

[CapeCodTenor]

Yep! It would likely launch the Great Depression, Part II.

Again, another reason the auto companies can't fail is Homeland Security. We can't lose all that manufacturing capacity in case of war.

This scares me anyways. Just think of all the manufacturing jobs that have left this country for cheaper labor else where? If we lose the auto manufacturers, then we'd be screwed if we ever had to mobilize like we did during WWI and WWII. I don't consider myself a conspiracy theorist, but I do think of things like this.

 

[GeorgeG]

Should we just bail out GM, Ford and Chrysler or should it include Toyota, who has plants here in the US?

The Detroit-based auto industry brought on their own woes by failing to compete with companies like Toyota. Unions probably play a big role in the problem, but you can't blame the inferior engineering on unions. Make a better car and sell it at a decent price and people will buy it!

Some years back, one of my sister-in-laws married a Ford mechanic and spread the word to by Fords because her new husband could fix them when something broke. My answer was that I'll stick with Toyota and not need a mechanic for anything but oil changes.

I kinda feel the same way about banks. I don't think we should be bailing them out for screwing up. The those who did it right take them over!

 

[Colleen27]

Where does it stop? Can we just keep printing money?

Personally, I think it should be done in he ways that most benefit the American citizenry. The estimates of the consequences if just ONE of the Big 3 were to fail range from 1.5 to 2.5 million jobs lost. AIG et al were bailed out to avoid a much smaller impact, yet Washington resists helping our automakers... It just goes to show it is all about who you know!

 

[JimB.]

Just a point - whether one agrees or disagrees with the "auto bail out" (if there is one), this is not a gift or free money.

It is a loan package to be repaid to the taxpayers of the USA & is not without precedent.

Lockheed, Chrysler, Penn Central to name a few. Some made the taxpayers LOTS of money. Others - not so good.

or should it include Toyota,

Nope. 1.) Not an American company. 2.) They don't need the money

I kinda feel the same way about banks. I don't think we should be bailing them out for screwing up. The those who did it right take them over!

But, if the government was not, they would most likely fail & the taxpayer would be on the hook for their assets anyway ( i.e., the FDIC) and would have no way to possibly stand a chance of redress. At least this way, there is a (false) hope that the taxpayers may actually be made whole........

 

[Not so Dumbo]

If the auto-industry fails, then I mean it when I say:

The last one out of Michigan....... remember to turn off the lights.