General Motors and Chysler hired bankruptcy lawyers recently to help work out their own solution as big government bailout hopes waned.
With defeat of the bailout bill Thursday, the Detroit situation becomes analogous to the one in Frankfort. State agencies have been predicting widespread death and destruction should they be forced to make do with less taxpayer money.
Might be interesting to see the political fallout if part of the auto industry survives sans bailout. Same goes for Frankfort.
Friday, December 12, 2008
Would car maker survival be big gov disaster?
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2 comments:
If Chrysler and GM can save their selves without a handout it will prove that they could have done it to begin with instead of begging for money the government doesn't have. Why should these companies be treated any different than the small town companies that have closed their doors on a daily basis leaving hundreds without jobs? Just because the Big Three are giants in the business world, doesn't make them any better than the little mom-n-pop shops all over the country. Big Three learn to rescue yourselves, sell your jets, fly like normal folk. Cut salaries for top management(you know you can afford to live on a little less)and convince the unions to renegotiate their contracts. These few suggestions alone should save your companies a very large amount of money.
If American manufacturers go down, then America's national security will be at the mercy of foreign manufacturers.
Can Toyota, Honda, Subaru, Volvo be counted on to produce American military hardware?
Our manufacturing base continues to be destroyed by Reaganomics--voodoo economics--practiced with gusto by Bush I and Bush II and their Republican, conservative economics. Consequently, our national security is being compromised.
It was Republican senators McConnell, Corker and Shelby who led the charge to destroy America's manufacturing base and workforce.
Alexander Hamilton wrote in his 1791 "Report to Congress on Manufactures":
"In countries where there is great private wealth, much may be effected by the voluntary contributions of patriotic individuals; but in a community situated like that of the United States, the public purse must supply the deficiency of private resource. In what can it be so useful, as in prompting and improving the efforts of industry?"
Congress should make a loan to US auto makers. Let the Republican Party be known as the party that's willing to compromise American national security in defense of foreign manufacturers.
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