Who cares right? Nah, pretty much wrong. I have a position on this auto bailout of the Detroit 3 automakers (General Motors, Ford, and Chrysler) and I'm pretty much for it.
I have to say, the Senate failing to pass it because of a few Southern Republicans makes me extremely mad that our system allows for such pettiness. AL Senator Shelby, TN Senator Jim Corker and KY Senator Mitch McConnell all were playing political games when they should have realized what the House and the White House were behind. They were behind a plan to allow GM and Chrysler to survive another few months without having to file bankruptcy. They pretty much saved jobs that were on the verge of extinction. They were behind a plan to keep American products from falling to foreign products. However, the three leading Republicans that defeated the bill in the Senate prevented all that to add their own little pettiness.
Some believe it is because they have foreign automakers in their own states, like Honda and Hyundai in Alabama, Toyota in Kentucky and another, which I can't think of right now, in Tennessee, and that may well be, especially since those companies do not use union labor. I think the labor is definitely is the root of the problem, which is an unfair attack on the UAW and other labor unions. One of the tenets of Republicanism is free market all around, and labor unions prevent that because it is an unfair advantage to the workers to get the compensation that they think is just, but the market does not. It's unfortunate that a person who works in the United States Senate gets to decide what people who work for a living make and holds the fate of their company hostage to get what they want.
It's unfortunate that the worker has the become the focal point of the conservative voice on this issue, especially since they only do the job assigned to them for adequate compensation. They didn't run the companies into this mess, they didn't create the mission to create Hummers or other gas guzzlers that eventually hurt the business. That's not up to them. They get just compensation and some health and pension benefits, just like government employees, like Sen. Shelby, albeit a lot less. It is not fair to throw the problem onto their backs to make a point, not in these tough economic times. Not to benefit any other entity or the like.
So here's the thing: If those automakers fail, say hello to even more economic woes. Say hello to HUGE job loss, and not just at the factories of the automakers, but at the dealerships, especially ones with service stations and shops. It's pretty much guaranteed that if GM or Chrysler files for reorganization bankruptcy, nobody is going to buy from them, even if they sell their cars for way less than they're worth, because there is no trust that the car will be taken care of, with respect to warranties and guarantees. The companies are done and liquidation bankruptcy will be their last resort.
There has also been this disconnect with the financial bailout and the auto bailout. Why is one more important than the other? Why is no one caring about those executives or their employees pay scale? Why do automakers have to define exactly what they are going to do with the money when we have no idea what the banks are doing with the money, nor resuming normal lending practices? It doesn't make any sense to treat all these entities so differently when they are all in the same boat.
The bottom line is if the auto bailout fails, even though it's a loan, and not injecting capital into banks like Paulson did with the banks, you can expect huge ripple effects in the entire economy. Think of how much money states get from sales tax revenue on new car sales, and then you'll see why it is important for these automakers to stay around.
One last thing: I'm not sure if Sen. Shelby realizes, but the foreign automakers aren't doing so hot right now either, especially those in Japan, which has been hit hard by this economy. We probably wouldn't know much into it, like if Honda or Toyota are asking their government for money to stay afloat. Those automakers could pack up and leave Alabama if they needed to, and we'd be out of manufacturing of cars for good. We'd have to import all of our cars, and they'd be that much more expensive.
Also, I hear everyone getting all butt-hurt about the government using our tax money for these bailouts. What do you think they use to pay for other normal government programs, like defense or education? You don't hear everyone crying about that. Once you give it up, it's no longer yours. Just some food for thought.
