The Nancy Pelosi proposed auto industry bailout must be stopped. It's time for tough love. Sometimes you have say no.
I think the financial bailout package was wrong and should not have been passed. I think it would be better to take a hard hit and get it over with rather than drawing it out and unfairly bailing out this or that business and not others. I think the people who had their hands all over the roots of the financial crisis such as Barney Frank, Chris Dodd, and Nancy Pelosi and a host of others should be held accountable. Read more about how and why they contributed to this crisis here: What Caused the Current Financial Crisis (Part 2).
Now, Pelosi and others want to divert some of the bailout package funds to bail out the big three automakers. This is wrong. Not only are our elected officials, once again, acting like dictators instead of representatives, most people, some 80% did not want the bailout anyway. There are fundamental reasons that the big three need life support. Throwing money at them will not solve those fundamental problems; it will only prolong their eventual bankruptcy.
The big three automakers are being sucked dry by outrageous salaries at the top level and union salaries at the bottom level. How can the board of a company justify paying its top executives millions and millions of dollars when they loose money on every car sold. Executive salaries should be tied to profit and long term profitability, not quarter to quarter.
How can the big three make money when the average union worker makes $75 per hour and a non-union worker averages $25 per hour? How can they be expected to turn a profit when unions require them to pay for full benefits for retired workers? It's not right. Unions had their time and place, but it's over. The unions are bleeding their hosts dry and they are in effect, through their gluttonous and selfish behavior, committing suicide.
What will happen if Pelosi has her way and we bailout the automakers? It will only prolong eventual bankruptcy. It's better for them to go into bankruptcy now and get it over with, break the hold of the unions, and create a business model that is profitable. Either way we'll go through a painful period, so way waste the bailout money and give false hope?
Contact Our Elected Officials
It's time to barrage our elected officials with emails, calls, and letters saying DO NOT BAILOUT ANY MORE INDUSTRIES. DO NOT BAILOUT THE AUTOINDUSTRY.
You can use this web site to contact your elected officials: USA.gov.
We CAN Do It
Look at these two companies. Both are located in the USA. We do have the ability to have an auto industry in this country, but it takes ingenuity and loosing the unions....
These are high-end examples but the technology they're using could be applied to lower priced cars...
Ronn Motor Company:
These guys are making a hydrogen fuel injection sports car called the Scorpion: 450 horsepower! and they're made in Texas using an Acura engine...
Ronn Motor Company
Panoz Auto:
These guys use Ford gasoline engines, but their fabrication processes are amazing and have been copied by other manufacturers... and they're made in GA outside of Atlanta.
Panoz Auto
Until next time,
Fred (aka Recoil)
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Posted by Fred (aka Recoil) on November 13, 2008
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