Research123

The Right Kind of Bailout

In a perfect world that isn't already in crisis because of the Wall Street mess, Shelby woudl be right - let the auto's collapse and trust that the capital markets will fund a new, smaller and nimbler industry. But wait - the capital markets are's working now, so that woudl be an incredibly stupid thing to do woudln't it?

The auto industry needs an industry-wide horoic solution to the non competative legacy beneftis package that keeps dragging them down. Something like the rairoad retirement system that was established early in last century to resolve the legacy rairoad pension system.

The auto industry was THE significant driver in creating the post-WW II midle class. Think of the increase in the number of cars per capita over thr past 50 years and the establishment of the great American surban landscape. For better or worse, auto's were the driver, and the country can't just discard the aging workforce that was at the heart of this process.

Solution: a prepackaged reorganization of the entire industry that begins with a nationalized auto retirement system (income and health insurance), funded over a long future period by profit participation from the new unfettered re-capitalized businesses. Force the UAW to accept a radically restured work environment and wage structure in return for full government guarentees of the auto retirement system.