Posted by: thescoundrel | November 20, 2008

To Bail Out US Automakers or Not – That is the Multi Billion Dollar Question


I have been reading about the recent suggested bailout of the US Automaker Corporations Ford, GM and Chrysler that just fell apart in the Senate. There seems to be lots of pros and cons concerning the bailout being tossed around the Internet. A poll on QCOnline seems to be leaning against the idea.  I am not sure if it is/was a good idea or not. If you consider past examples such as the TV/Electronics Industries, once a huge manufacturing base here in the US, government and history has not usually been kind to businesses that fail to stay competitive. Today’s electronics market is made up of items mostly made in Asian countries like Japan, South Korea and China. When US Electronics companies were being battered by foreign imports the US government did not rush to save American Electronic Corporations that either went out of business or was absorbed by foreign companies. There are no major manufacturers of televisions based inside the US that I am familiar with other than Vizio. And I do not even know if they build them here in the US. Curtis Mathis was down to one location in Texas but has recently been bought out with claims that they will become a force in the market again. Yet all the more well-known US Television Manufacturers that built the industry like Philco (1976), Magnavox (1976), Admiral (1979), Sylvania (1983), RCA (1986), GE (1986), Zenith (1999) have all went bankrupt or have been sold off to foreign companies as they became uncompetitive with foreign electronics manufacturers. No one in government saved their companies with bailouts. They were just allowed to become part of American Manufacturing History. I guess my question is why save Ford, Chrysler and GM from their own greed and incompetence when we never lifted a money-filled hand to save any of those companies?

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Responses

  1. Congress wants to save the big 3 for the same reason they bailed out Fannie and Freddie. They know they’re partly responsible for the problem.

  2. Of course they are. But the real responsibility falls at the feet of the Big Three Ownership, Management and workforce. The buck stops with the infrastructure of the three companies. They are responsible for their drunken path they have chosen. It has not been that long since we charged in on our white greenback Horses to save Chrysler. It worked. But now they are caught with their pants down once gain. It is just this time all the Big Three got caught sleeping on the job.

  3. Why lift a finger to save any of the financial companies, either? I think this crisis has pulled back the curtain on the fact that big government and big finance are basically part of the same governing entity.

  4. I have said before I am hot and cold on the bailout. It is a damned if you do – damned if you don’t situation. Money has always pulled the puppet strings of all politicians. In the evolving chapters, each political puppet will duly serve their masters bidding as best as possible or face excommunication from the inner circles of politics.


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