Even With a Bailout, Automakers Would Still Be Running on Fumes

Economic Theory to Change

Nothing will change until DEMAND side economics replaces the SUPPLY side economic theory popular for the past 25 years. Demand side economics is a good excuse to pour money into the top of the pyramid to the well heeled -- and it produces lots of stuff to buy. But, people don't have enough money (even by maximizing credit to their eyeballs) to buy the stuff. This is what happened during the last depression in the thirties. Car companies just happen to be the first of the big manufacturers to get completely clobbered. This necessary industry receives a stingy little $14 billion from the gov., while banks and insurers that produce mostly pieces of paper and debt problems get an unlimited supply of trillions. This will change as the bread lines form.

Kosmo of MO @ Dec 21, 2008 11:20:43 AM

Bottom line is we failed

What is going on now is the result of all of our actions in this country, and they have resulted in FAILURE, with a big F! Will thinking the same way as the past and doing the same things help us out of it? I doubt it. The big problem is that we run the country or were running the country from ideology versus fact, that has to stop.

Our system is only as good as the people who are running it and the people that vote for them. If our economy sucks, its because we suck, stop blaming everyone else and try to fix it. If we are the greatest nation on earth then lets start setting an example and stop pointing fingers. There are plenty of nations out there with successful economies and great standards of living, how about we take a lesson from them instead of trying to reinvent the wheel, make the wheel better.

Lastly, if we as a people are too weak to remove those in power who are obviously incompetent, then we deserve what we get. Remember that for the rich, they are not going to have to worry about making the mortgage payments, or feeding their kids. They are going to fight change as much as they can because this is the system that got them rich in the first place.

Jimbo of ID @ Dec 20, 2008 02:56:00 AM

Phony American my a$$, I will stand by an American made car when the manufacturer stands by them.

My last two trucks were a chevrolet and before that a ford, all of them had major problems that were experienced by literally thousands of owners, and of course no recalls were issued.

There's currently class action lawsuits over two of those problems, but nothing will ever come of it, their high powered attorneys will tie those cases up for years.

I consider myself to be a red, white, and blue blooded American, and always try to buy American made products.

But I will NEVER buy another American made vehicle.

Dean of FL @ Dec 20, 2008 00:02:29 AM

I'm a phony American. Sorry, I just needed a good car.

Ryan of AR @ Dec 13, 2008 15:05:29 PM

The American Power

The people who say that a new world order is to arise are truly wrong, the US stood after the great Depression as the strongest world power and it can do it again. The American people are not ready to lie over and just leave our greatness without a fight. We should help the auto industry; Japan and Germany help out their auto industries why can’t we. I truly believe that the Americans who buy the Japanese and German car are phony Americans. Stand by the USA products and help them out of this problem so we can stand high in the sky. I believe that each nation controls its path, if the American leave the super power post that it is because they just stood around and let the other nations to pass them up. Fight for USA.

Kevin of TX @ Dec 12, 2008 17:13:05 PM

GM Bailout - Don't do it

Let the Automakers fend for themselves. The same bad managemnet and arrogence that got them in this mess will be the same reason the bailout money would be misspent.

I think the bailout money would be better spent on the education and financing the families of workers who lose their job until they get another job or get a degree.

Andy of WI @ Dec 11, 2008 20:35:29 PM

BANKS YES, AUTOS NO?

In a few short days, the government came up with $700B and appointed 2 men to dole it out very rapidly, all to save banks that made atrocious loan decisions. Yet a $14B lifeline to protect hundreds of thousands of jobs is unthinkable?

The American auto industry needs to downsize and consolidate many brands and models. Let's at least do it in an organized fashion and not just let them die.

Michael of AL @ Dec 11, 2008 13:09:20 PM

FUTILE AUTO BAILOUTS

If the US is to avoid further destruction to it's economy, decisions must be made with the head not the heart, intellect not emotions.

The US has become uncompetitive as an auto maker, vehicles at a lower price and higher quality can now be produced by Japan, Germany etcetera.

Instead of temporarily keeping people in work by burning $billions in the dying US auto industry, it would be wiser to retrain personnel by using a fraction of these monies. After analyzing the potential skills of personnel, blossoming industries such as the alternative energy sector and elements of hi-tech among others which would be fruitful for the economy.

Let us not kid ourselves and truly wake up; we are in the early stages of a Second Great Depression. We need to invest our resources of manpower and monies with a view to seven to ten years time when a new world order in terms of industry, finance and economics will arise from the ashes. It is imperative we address our future not our past immediately before China, even India and Brazil etcetera overtake us as economic powers. No one is saying this is easy to implement, on the contrary and with new legislation required, but it is a necessity.

It's more difficult than flogging a dead horse, which is what the US auto industry is becoming. We need to be bold, wise and honest with ourselves. The Presidential Election is over, Obama has the magnetism to convince the unions and the citizens that this is the correct and only course.

GLOBAL1ADVISORY of NY @ Dec 11, 2008 04:57:06 AM