- Joined
- Jan 30, 2007
- Messages
- 2,506
Lem wrote:The loss of jobs is concerning. I already have many friends who have become unemployed because their companies just aren't getting enough business and so jobs are being cut. Watching them struggle to get by and get any job is difficult.Berserk wrote:Now I understand the idealistic opposition to an auto industry bailout (I'm right there with you guys, ideally), but if the auto industry collapses we (Michigan, in case you haven't looked at my location before) will be out 500,000 jobs in addition to the steady decline in jobs we've had for the past seven years. We're already tied with Rhode Island for the worst unemployment rate in the country--I'm rather worried about losing the auto industry.
I get this and it is unfortunate that so many people will lose their jobs, but by bailing out the auto industry (or any industry), we encourage companies to continue running their businesses inefficiently and unprofitably. There is no incentive for them to enact major reforms and overhaul their whole business model because they can come to the government whenever they need to be rescued from their own incompetence. It's essentially the same reason that Communism never really works.
Sure, the economy and resulting decrease in auto sales has hurt the industry greatly, but the low-quality product put out by American car companies coupled with the way these companies just hemorrhage money because of the unions is what is really killing the industry. But again, with no real incentive to improve, the American car companies will continue to make shit cars and run their businesses into the ground.
I also think it's a bad idea to keep raising taxes and take more and more of our money in an attempt to stimulate the economy. If I have less money in my pocket because I now have to pay welfare to Michigan auto workers (because this is essentially what the bailout would be) I then will have less money to spend as a consumer - say to buy a new car, for instance - which is exactly what we don't need right now. The best thing that could be done right now is for the government to cut massive amounts of unnecessary spending and to lower taxes so that people will have more money to spend. The auto industry wouldn't need a bailout then because they would be selling cars again. And maybe if they saw foreign car companies selling many more cars than them, they might decide to look inward finally to see why that is and possibly consider something crazy like, I don't know, making good cars and learning how to run a business properly.
Okay, sorry about the major derail. I had to rant for a minute there.