Ramses II

The Truth About Bailouts

The flippant description of the "depleted coffers" of our national automotive industry is something to which we should all take exception.

Our government so easily hands out hundreds of billions of USD to banks, insurance companies and others who basically push money around with a few keystrokes and skim a percentage - without a written "business plan" or any other apparent accountability or transparency.

Meanwhile, the backbone of our nation's ability to manufacture real products of our own is maligned and attacked for requesting assistance during a crisis that the banking and commodities (oil) sector CREATED!

I'll agree that the automotive industry has it's weaknesses and management issues. However, if you paid attention to the presentation and hard facts that the CEOs provided you would see that the Big 3 were on the path to turning their industry around prior to the economic (almost now) collapse. They are slow-moving and slow to react, however it is difficult to lay all blame in their laps given the incredibly manipulated prices of oil / gasoline (supply-and-demand, my ass!) along with unaccounted for military and reconstruction spending paid for by borrowing against our currency..do I really need to go on?

Millions of middle class people depend upon their employment - and PAY TAXES ON - their earnings through the auto industry. Not to mention small, medium and large business in all 50 states. These people buy products, homes, etc - think this might be a problem if this were removed from the economy? How much in taxes do you think this might add up to? Less or more than $25 billion??

But all of this is really not the most important point: the automotive industry is the backbone of our ability to manufacture our own goods domestically. We have already been "exporting" our manufacturing knowledge at an alarming rate; it is difficult to find qualified tool and die makers or skilled machinists in the US anymore - at least, not in the way you could 20 years ago. The loss of the domestic auto industry would put the final touches on the death of mfg in our country. How's that for a national security issue? Perhaps the Chinese could help supply us if ever we do end up in another major war; they already make our soldiers' uniforms for us, so why not?

So let's see: loss of ability to make actual products (as opposed to the "imaginary" money created in the financial sector that we are so keen to bail out - not loans as the Big 3 are asking for, but hand-outs), loss of middle class salary, which is the primary class for spending and buying in America.

Even if it were justified to let these companies fall into bankruptcy, this IS NOT the time for it. Haven't we set ourselves up well enough for economic depression??

Sure. Great idea. Just let the American auto industry tank. Then sit back and watch the world laugh...