No More Bailouts
Today's Wall Street Journal had a very interesting article about the big three and their scramble to get their hands on some of the federal bailout money. The author quoted facts and statistics from the last 25 years of losses posted by Detroit manufacturers.
Did you know that the former chief executive of GM, Roger Smith wanted to divest the companies auto manufacturing in the early 1980's? He was already trying to invest heavily into information technology and satellite communications. He knew the auto industry was in trouble at that time, why can't the rest of the world see it now?
The two worst US companies for investment of their capital in the last 25 years are General Motors and Ford. They have squandered billions of dollars, overpaid top management that had no long term plan, and continued to cave to the escalating demands of their union workers until they are crushed under the burden of too little cash and expenses that are overwhelming. Now they want you and I to pick up the tab.
This week we have seen the union bosses and the management of the Big Three join in an unabashed attempt to win the favor of the government to get handouts that will be wasted just as sure as the other hundreds of billions have been. In interviews on major networks they continue to spin the current situation as a bad set of circumstances. They see no correlation between their mismanagement and the devastation they are leaving in the homes of thousands of workers.
The freebies need to end, and they need to end now. The auto industry will go on, but it may need to go on without General Motors, Ford, and Chrysler. The American love affair with the automobile isn't over, we just need a new dance partner. The tax payers cannot afford to subsidize any more companies that are mismanaged by greed and by lack of vision for the future. Other companies will come along and buy these. The pain will be real, but it will be bearable. Using taxpayer money to buy these companies out will only delay the inevitable demise of the industry as an American tradition. I say, let it happen now.
Did you know that the former chief executive of GM, Roger Smith wanted to divest the companies auto manufacturing in the early 1980's? He was already trying to invest heavily into information technology and satellite communications. He knew the auto industry was in trouble at that time, why can't the rest of the world see it now?
Why should we save the auto industry today?
They are an out of date model, in need of an overhaul. Let them go.
The two worst US companies for investment of their capital in the last 25 years are General Motors and Ford. They have squandered billions of dollars, overpaid top management that had no long term plan, and continued to cave to the escalating demands of their union workers until they are crushed under the burden of too little cash and expenses that are overwhelming. Now they want you and I to pick up the tab.
This week we have seen the union bosses and the management of the Big Three join in an unabashed attempt to win the favor of the government to get handouts that will be wasted just as sure as the other hundreds of billions have been. In interviews on major networks they continue to spin the current situation as a bad set of circumstances. They see no correlation between their mismanagement and the devastation they are leaving in the homes of thousands of workers.
The freebies need to end, and they need to end now. The auto industry will go on, but it may need to go on without General Motors, Ford, and Chrysler. The American love affair with the automobile isn't over, we just need a new dance partner. The tax payers cannot afford to subsidize any more companies that are mismanaged by greed and by lack of vision for the future. Other companies will come along and buy these. The pain will be real, but it will be bearable. Using taxpayer money to buy these companies out will only delay the inevitable demise of the industry as an American tradition. I say, let it happen now.
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