Thursday, December 4, 2008

"Too big to fail" a terrible argument

American consumers already voted "no" on a marketplace "bail out" of domestic automakers when they stopped buying their cars at the current price level. Can't imagine how the Big Three think they will endear themselves to consumers by taking their case to politicians to force taxpayers to pay full freight and then some, rather than lowering their prices.

Enter the politicians:

The sales pitch has shifted disappointingly from "our cars are good" to "we are all gonna die if you don't pay what we need to maintain our lifestyles!"

Wouldn't exactly make a very good Super Bowl ad, would it?

The most important thing to remember is the doom and gloom spin isn't even true. There is a place in the economy for domestic-label cars. There is a loyal following for their high-quality products. (Disclosure: my driveway holds GM, Ford, and Honda vehicles.)

The problem is that currently, the price is too high. That's all. So cut the doomsday rhetoric and politicians' song and dance, guys. Lower your prices.

4 comments:

Anonymous said...

You have nailed this one on the head. Remember when hand held calculators were $300.00...now you can get one for $1.50. Now cars have gone from made with metal to mostly plastic and the prices have gone sky high. They could cut the price in 1/2 and still ride in the corporate jets.

David Adams said...

"They could cut the price in 1/2 and still ride in the corporate jets."

Quote of the day. Thanks!

Hempy said...

Your call to "lower prices" is the old capitalist argument that the "wage bill is too high."

Without the American values of justice and fairness, particularly as it pertains to economics, you are as rudderless and impotent as a fart in a windstorm.

David Adams said...

Karl Marx, is that you?!?!