Random Thoughts Automakers Debate

This week our Congress will debate what to do with the automakers; and probably in the spirit of partisanship rhetoric. The following are random thoughts about the possible government loan/bailout of the U.S. automakers. No order, just random and sometimes conflicting thoughts.

  • As an organization, the Big 3 don’t deserve it; and the UAW is totally innocent.
  • I bet the UAW lobby is heavily involved in the proposal.
  • Loss of worker hurts the money flow for both workers and their communities.
  • For every 1 assembly worker, there are 7.5 workers on the supply chain who are also impacted.
  • The government shouldn’t get involved because the natural free market is cleansing the industry into a new equilibrium.
  • Within the past 4 months, GM retirees covered by Medicare and Medicaid received notice that their health insurance is no more; but GM will compensate them an extra allowance per month for the insurance they need to find on their own.
  • I wonder if legislators from non-auto industry regions and those from auto-industry regions would change their tune if their situations were reversed. Ah yes  – aren’t they quite the pathetic bunch.
  • Roll the dice and let them rot; but use the government funds to stimulate jobs in alternative energy sectors and rebuilding the national infrastructure.
  • Let them first go into Chapter 11 bankruptcy protection, streamline, reorganize, and force the UAW’s hand – then consider the loan.
  • Available credit it tight, even for Chapter 11 organizations – and no credit would lead them into Chapter 7 liquidation.
  • Speaking of the credit crunch, with lending to consumers tight, car purchases are naturally down.
  • If market forces cause the U.S. automakers to a new equilibrium, won’t less competition and more demand on those remaining raise prices?
  • If you don’t believe the board of directors and executives of the Big 3 are clueless, read their news releases.
  • Any loan/bailout needs conditions limiting executive compensation and use of the funds.
  • It’s an investment of good money with a low chance of a positive return.
  • After the auto industry, who’s next in line?
  • Any government intervention must be bipartisan as both demanding Democrats and stonewalling Republicans are unacceptable.
  • Although the public is against bailout/loans, I believe this situation is more complicated than the public realizes.
  • If no bailout, how long will it take the public to complain that the government should have done something?
  • A Cincinnati Enquirer columnist’s title says a lot: GM -automakers bailout is another lemon – but frighteningly, it’s the only ride we’ve got.

One thought on “Random Thoughts Automakers Debate

  1. Pingback: On GM « A Frank Angle

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