Big Three Bailouts?

_____

What's in it for US?

I have questions.  Do you?

The 'Big Three' US automotive manufacturers, in order of viability Ford, General Motors, and Chrysler, are asking for a government bailout.

Really?

We -- or, 'we' -- already bailed out several financial institutions.  That was a big deal and very controversial, and now as 'we' slide further into a recession this other shit comes up, much more relevant to someone like ME, a lifelong automotive enthusiast who would like to one day build and sell vehicles of my own design.

Automotive manufacturers are failing, and asking for governmental grants.

To me this is bullshit.  As for the bailouts of other corporations, yeah that's bullshit too -- but it's done and over with already.  Plus, that whole deal is/was beyond my ken.  I don't like math, don't comprehend why anyone thinks credit is a good idea, and the entire phenomenon of the stock market, to me, is an anomaly.  These are people who make money by moving money around, and somehow they failed at it, and somehow it's vitally important to the economy that they don't suffer for their failure -- and you've lost me.

On the other hand we have corporations that produce a tangible product, and are failing.  Okay, that means you're done -- and your corporation is done unless someone else wants to buy it and turn it around, different management, same name.  I understand many Chinese investors would be interested.  Court them, sell, take your money and retire somewhere.  No?

The automotive landscape is littered with failed companies, many of which have been resurrected over and over through buyouts (especially in England, for some reason).  Should it matter how large a corporation is, when it fails?  Shouldn't those involved simply take their licks and move on?

Those at General Motors wanted to buy Chrysler, when Chrysler appeared to be in serious trouble.  What the GM people apparently realized was that they were in trouble too...  I guess there was a slew of conference calls leading to the Big Three's march on Washington...  Buddy, can you spare a dime?

Again I say BULLSHIT.  Are these people capitalists, or socialists?  Maybe they switch back and forth depending upon their situations...

The United States of America is SUPPOSED to be a democratic republic -- yeah and I suppose a certain amount of socialism has crept in, not that socialism in and of itself is necessarily a bad thing, but if we are a democratic socialist republic we should know about it...

...and here's the thing:  If we're going to participate in socialism, THE PEOPLE ought to benefit.

It's a simple concept.  If the People's money is used to bail out a corporation, the People ought to gain a percentage of ownership in that corporation.  Please tell me if you think that doesn't make sense.

Money from taxes goes to the government.  Sure, the government decides what to do with it, but if it's invested in corporations, are we not all then shareholders?  Shouldn't we be?

Look, I'm familiar with the argument.  These particular corporations employ a lot of people, and their suppliers employ exponentially more.  If they go down, a lot of people lose their jobs.  But hey, that's capitalism.  If you're leading a large corporation and you're too stupid to not back your shit up, a lot of people suffer -- and it's on your head.  It's your fault for not having enough foresight, and you should know that you have a lot of apologizing to do for people who have lost their jobs -- unless...

...Unless you can arrange to sell your company to someone who can do a better job of managing it.  This is where the Chinese could come in.  They're ready.  They're willing -- and they just might be able.  It shouldn't matter, as long as they have the money (which they do).  This is business.

But no, they have to fly into D.C. on their private jets and whine.  Boo fucking hoo.

I personally don't give a shit if Ford, General Motors, and Chrysler all go down the tubes.  I don't even give a shit about their employees, who thanks to their union make ridiculous salaries for jobs that don't require that much skill.

That's right, motherfuckers, I once worked in a cardboard box factory for minimum wage.  If anything on an automotive production line is significantly more complicated and requires THAT much more skill, to legitimize those wages...  Point is, automotive workers are overpaid, and that's part of the corporations' problem.

Don't get me started about unions.  On some levels, they are quite useful in getting their workers a fair wage (and benefits, and working conditions) -- but some go too far.

Right now I'm cringing at the idea that, in trying to get my cars built, I'll come up against a union telling me how much my workers ought to earn, and what they can and cannot be expected to do, and so on and so forth.  I've never had employees, but it seems to me they can decide for themselves what they are willing to do for a specific wage.  After all, we live in a completely different age from the one in which unions were initiated.

I have digressed, and gone off on a rant.

Maybe letters to Congress can make a difference -- I don't know -- but seriously the People deserve something in return if their tax money goes to corporations.  A friend of mine said:

"I think every US taxpayer (including the working poor who may or may not file but still sure as hell pay taxes)

should be given the choice of $10,000 in cash, stock options or a new efficient subcompact car.

"I am absolutely serious. Financial crisis solved, auto industry saved, environment helped, millions of new jobs created (as so many people would take the car)...  Hell, think how many people would take the money and use it for education..."

Ask me, the automotive industry in the United States of America has been a dinosaur for decades.  It's continually playing catch-up with imports, with mostly dismal results.  This is a result of complacency.  Apparently there exists a passel of executives who are extremely out-of-touch with the reality of the business of peddling merchandise.  They have failed to provide customers with what they want, with enough of a profit...

The whole point of this post is to suggest that, if our government is to throw money at these corporations, this being taxpayer money -- the taxpayers ought to, if not have a say in it, at least get a percentage.  What's that?  My money is being given to GM?  Do I get some stock?

Seriously.

Phil Smith

December 4, 2008

_____