k45

Why We Need Higher Gas Prices

What we need is more stability in energy prices instead of the wild gyrations that inflict heavy damage on our economy and individuals.

I pity the folks who believed gas was going to $6 and $8 a gallon and went out and traded in the existing vehicle (at a low trade in price) for an overpriced "efficient" vehicle. They wasted money AND energy (how much energy went into producing the new vehicle?)

All these wild variations are doing is driving people to make bad decisions. Our economy would be much better off if we set a reasonable price for gas, such as $2.50 a gallon (with perhaps a 8 or 10% per year increase) and added tax when it was lower and used that same tax money to rebate prices when it went higher. THEN people and corporations could make intelligent long term decisions.

Of course such a sensible plan will never be done because too many of our politicians and their friends make money from the gyrations.

Big Two Bailout: Likelihood of Success Is Slim

The article is right on target. Detroit cannot survive with the current (and mid term) demand for cars. Rebates and incentives already sold the next couple of year's demand for cars.

Instead of a bailout to keep Detroit in business, the gov't money should go to retraining workers and finding new industries to profitably utilize the empty facilities.

The Case for Making Bigger Cars

Detroit management is poor. What would be a LOT worse would be Washington managing the auto industry!

Detroit does not need to produce vehicles that they cannot sell.

There is a lot wrong with Detroit, but even more wrong with Washington.

But the base problem is there is too little demand. Detroit along with the foreign manufacturers have "sold forward" several years of demand with rebates and low cost financing. Too few people need to buy cars now and for the next few years. Keeping Detroit at current production will be throwing good money after bad.

Instead of using tax money to support Detroit, we should take the money and 1) provide retraining for the employees; 2) find new industries to take over the idle auto plants and provide new, needed products.

How Not to Bail Out Detroit

If Detroit is going to survive, they have to build cars that BUYERS want, not what government wants them to sell.

The biggest problem today (besides retiree costs) is overcapacity. There is NO MARKET for additional cars. Detroit already "sold forward" the next couple of years of demand with their rebates and low cost financing. Detroit already cannibalized their future sales. Subsidizing purchases will just stretch out the pain. Detroit needs to downsize. Yes, it will be painful, but dragging it out longer will only hurt Detroit and the nation even longer.

Instead of plans to keep the plants producing unneeded automobiles, put our tax money to work retraining laid off employees AND FIND NEW INDUSTRIES to occupy the empty plants.