If you had a gangrenous foot, you would have it amputated.
Sure, it’s justifiable to be reluctant. It’s justifiable to be completely scared out of your mind. After all, what else would you have but fear invading your every thought while you are laying there your hospital bed wondering how you’re going to cope with your new disability.
If it were me, I would be probably be whining like a little girl and hiding my fear behind ridiculous jokes like I just wasted $400 on a new treadmil.
However, if this really was you, and you watched as that tiny infection at the tips of your toes quickly spread to your leg, you would obviously be worried about more than just your foot. You would be immediately focused on your ability to survive at all.
Losing a foot isn’t as bad as dying. Is it?
The Big Three Automakers Should be Allowed to Fall into Bankruptcy
I hope you’re not offended by my analogy, but in some respects, the Big Three automakers are a festering, gangrenous segment of the U.S. economy. If they wish to regain their former glory, they must first consolidate and then retrofit their product pipeline if they truly want to compete against the more popular (BMW) and more economically appealing (Honda) automakers.
Don’t get me wrong, I’m completely against putting anyone out of a job, but when a private company that is non-vital to our national economy goes to Congress begging for risky loans using fear mongering as their best argument, I tend to blow my stack.
My reasons for denying GM, Ford, and Chrysler their requested bailout, and for allowing them to go bankrupt are:
- Natural Selection / Darwinism – private businesses that are non-vital to our national well being should not receive taxpayer money just to stay afloat.
- The Precedent – If Congress gives bailout loans to anyone who employs large number of Americans, every business with a piss poor balance sheet and needing a handout will be knocking at the proverbial door. Not to mention, that TARP will be an acronym we will hear for the next 10 years on a daily basis.
- Risk on Investment – the proposed “bridge loan” is only meant to stave off possible bankruptcy. In all likelihood, the money given to the Big Three will never be repaid even if they get it. I would rather invest in the Las Vegas timeshare market than buy any type of investment related to GM or Ford.
- Sunken Costs – My fear is we are about to let good [taxpayer] money chase bad ideas. I could justify any number of ways how the Big Three have hurt the U.S. economy for the last three decades, but with this proposed bridge loan, we’re simply throwing new money at an archaic business model that needs to go the way of the Dodo bird.
- Arrogance – bad decisions are rampant among Detroit’s elite management teams and now the inevitable is upon them, they expect handouts. Sorry guys! Try flying coach next time you come begging for money instead of flying to Washington D.C. in your private Lear jet.
- Fairness – try telling some Average Joe working for a U.S. based Honda manufacturing facility that his tax dollars are going to bailout his competition. If anyone can justify this, I would be shocked.
- Saturation – In the U.S., we have just over 1 car for every 1 person over the legal driving age. With an impending recession on the way, and the cost of high gasoline always lurking over the horizon, it’s justifiable to suggest that we have far too many cars roaming the streets. Cutting production would boost prices, eventually helping the automakers.
- The Future – President-Elect Obama likely has a workable Green Energy, or “Green Collar” initiative just waiting to be unveiled after he officially takes office. Big Three CEOs are pushing Congress for immediate loans now, and it’s not unbelievable to suggest he would want to annex a small amount of this labor force to convert to green collar jobs.
I’ve long agreed that the trickle down effects of letting the U.S. automakers go bankrupt will reach far and wide, but it’s no reason to loan out taxpayer money with the very real possibility that we won’t be getting paid back.
My suggestion (to be fair I heard this on CNN) would be having each company submit a business plan stating why their company should be allowed to continue functioning. Whomever comes in last place with their business plan gets the boot, is forced into bankruptcy procedings and is salvaged for parts if needed. This way, we retain at least two major U.S. based automakers, Detroit get’s to save face (small but acceptable amounts), and we have a new available workforce to train as Green Collar workers.
* * * * *
SUBSCRIBE: If you enjoyed this article, please sign up for new article alerts by RSS feed or Email.