Bailing Out the Auto Makers
Thank you Conservatives for the absolute mess you have made of this country for the past 30 years. Now it’s time for the enlightened Americans to sweep together the scraps you have left of our environment, our economy, our government, our country, and piece back together what we can. I’m glad America is finally opening her eyes to the absolute failure of the Conservative agenda for the wealthy. Are there enough scraps to save our auto industry?
700 Billion Dollars! That’s what we were told the Conservative Mistake cleanup would cost. Now we’re hearing that we may need another 26 billion just for the auto makers. Many question whether this is a good investment of our children’s tax dollars (since they’ll be paying this off long after we’re gone).
If we think America needs an automobile industry, then of course we need to find a way to save it, and I, for one, think we need an auto industry. But, our auto industry has been in trouble for decades. In fact, the auto industry management all claim that the problem is the United Auto Workers Union (UAW). The owners say they’re paying their people too much money but they’re not willing to take home any less.
Looking back a few decades, we can see that the auto industry in America was in trouble, back in the 70s. That was the time our auto industry was sitting on their laurels and delivering the same old thing over and over while innovation in other countries was leaping ahead. Around that same time, the UAW was gaining enough support that they negotiated living wages for the workers.
Industry management had to pay their people more but didn’t want to share the wealth so this pushed all the cost of the UAW raises off to the consumer. Inferior cars at a higher price and they were headed for trouble.
They’ve been in trouble since and America even had to bail them out before. If they can’t manage the car companies, then they should retire, but they won’t as long as there’s money in it.
The solution is to use the $25B to buy controlling shares in the companies and give or loan those shares to the workers. Let the workers decide as obviously the management doesn’t know how to make decisions.
Of course, this also means addressing the failures known as the Free Trade Agreements and we need to reevaluate our tariff policies.