Big Three: Too Connected to Fail?

According to data from Opensecrets.Org, over the last ten years, Ford (F), General Motors (GM) and Chrysler have expended $228.4 million in lobbying costs in Washington. 

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But lobbying is not the only influence congress will be under when debating the automakers' bailout. Payback for support given as campaign contributions would also be on the table. Below is a list of campaign contributions from the unions, the automakers themselves, and companies that have done business with the automakers since 1989: 

I do not see how a bailout of the automakers is not a foregone conclusion. Now look at the lobbying expenditures for 2008 for all industries - anyone for political reform? 

Disclosures: None

Comments

[investor88:]

Not a good system whereby businesses lobby and grease law makers. Looks like America is not perfect after all.

2008 Nov 16 07:52 AM

[LikeSoup:]

It’s hard to know what the right thing to do is is but truly the best way to succeed in life as an individual is to identify work you enjoy which enables you to be happy while also being there for your family. LikeSoup.com

2008 Nov 16 08:45 AM

[joyboy:]

Any business has the right to prosper. Any business has the right to fail. This should not be contingent upon we taxpayers to bail industries out due to bad decisions on their part. Let the big three go bankrupt. Let them reorganize. Perhaps then they will sell to the public what they want, and not what they foist upon us. Good autos manufactured years ago could not cut it, such as Packard, Studebaker, Desoto, Kaiser Frazier, Nash, Crosley, Pierce Arrow to name a few. Build a better car and we will buy it. Banks also have a responsibility to make loans to QUALIFIED buyers. No bail out!

2008 Nov 16 02:14 PM

[qw:]

The Big 3 did make the products the public wanted, just not the ones that the Government mandated with CAFE laws. If the US had an energy policy, like the rest of the world, that forced the consumer to chose energy efficient products, like the $4/gal gasoline did, the domestic auto industry would not be in the state it is now. Remember, Toyota and Honda has big trucks and SUVs, not because they are as stupid as the domestics but because the American consumer wanted them, when gasoline was cheap. Joyboy shows ignorance about the industry and knowledge of economics. The big 3 have narrowed the gap and build products of equal or better quality than many asian and european manufacturers and have many products where their fuel economy is is very competitive.
In this environment, the demise of the auto industry will be a disaster, and will push the country into a prolonged "depression".

2008 Nov 16 08:41 PM

[usanowGMelect:]

Good paying jobs are the creation of communities giving big corporations, like GM tax abatements. In return GM pays it's workers well which boosts the communities economy. This works well for the hourly insurance worker, the real estate worker, the school worker and the hospital worker. The whole community prospers. GM pays more taxes back to the Governments of this country than all the foriegn automakers combined. Foriegn automakers send their profits not back into your communities, but back to Japan.

By voting to close GM, you vote against your investment in your own community and to allow foriegn interests to entrench deeper in your back yards. I agree that GM needs to redo their business plan because there are lots of mixed signals and this is why congress is taking their time to sort all this out. But to destroy any community in this country as a lesson to unions and poor management would be like cutting off your nose to spite your face. I don't look at this so much a bailout, but as a loan to help out a nieghbor who's fallen to an unfreindly economy. Hell, we're pumping 10 billion into Iraq every month. Just helping a nieghbor out right? Let's help our own with 2 just months of Iraq compensation.
But demand a business plan, that emphasizes that our communities come before retention bonuses, golden parachutes, foriegn investment and global aspirations. Demand union accountability - stem absenteeism, tighten work restrictions, better review family medical leave abuse, throw out appointed position slackers and eliminate job entitlement attitudes.
In turn we should expect work coming back to our communities, which should energize our economy, which hopefully will return the big three to profitability, and in a year or two create a robust return for the taxpayer.
If we don't start to come together soon, we will surely fall apart.
We just have to put politics aside and demand accountability. Please
save the U.S.A.. Don't ask for it, Don't argue about it. Demand it!

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2008 Nov 16 10:30 PM