Saturday, December 13, 2008

Auto Bailout

Its nice to see the Republican party is still out of touch with the majority of Americans. The southern Republican senators lead the way to kill the bailout of the auto industry with help from some Democrats. Was this an attempt to bust the union, keep the automakers based in the south happy or were they voting based on their constituents? It boggles the mind that the states that primarily went for McCain in the election are now the states that are leading the way in voting down the auto bailout. Some leaders just do not get it. A majority of Americans, by a small number, are in favor for the bailout so you would think are esteemed leaders would listen to what we have to say.

It is rather simple to me. If the Chrysler and GM file for bankruptcy there will be massive layoffs amongst these two companies and all of the industries that support them. Somewhere around 4 or 5 percent of all jobs are auto related. Big number my friends and if we start to see Detroit go under we will see unemployment zoom to 10% and we will be in a depression.

Bankruptcy will cause dealers to fail and will also put many retired auto workers in dire straits as they will not be getting anymore money from these companies and they will dumped onto the public dole.

While the bailout may not be the best answer it is better than bankruptcy because it will allow Detroit to have a more orderly reconstruction of their business.

Of course the banks that have received all billions of dollars could step up to the plate and offer to help the Big Three by offering lines of credit.

1 comment:

Anonymous said...

I'm beginning to smell one huge conspiracy in this auto bailout. I feel the domestic automakers and the foreign marks may be collaborating to either break or severly weaken the unions before Obama takes office.

I'm beginning to think we are being jived!