MellowGuy

How To Save the Big 3 Automakers

There are many factors that have and are destroying manufacturing in North America. A value-added tax to replace part of the current corporate taxes would reduce the subsidy to foreign manufacturers. A reasonable health care system would reduce health care costs for current and retired employees. If the value-added tax were to be extended to oil, manufacturers would have a more predictable market for vehicles with lower fuel consumption.

The switch to defined contribution pensions, such as 401ks will help since the companies won't be gambling away all of their obligations to employees.

Companies that are in financial trouble shouldn't be paying dividends.