Simpletruthiness’s Weblog

Big 3 or the Big Nothing

Posted in Politics by simpletruthiness on December 9, 2008

There has been a hot debate over whether or not the government should bail out the big three. What is the other option? How would losing three million relativly well paying jobs help anyone?
What about the knock on effects? People buy cars and the people that make the cars buy stuff, the people who work at the dealerships buy things.The people who provide the goods and services purchased by those people buy more goods and services so forth and so on. We are often tempted to stop the discussion at the first and more recognizable order of consequences.X number of jobs are lost because of a plant closing. But how many jobs are lost or cut back down the street?

A Governor from a state with large Japanese auto presence has been heard to say so what if big three go, I am quite happy with the Japanese manufacturers.Perhaps the big three deserve to go out of business. He doesn’t realize that eventually the ripple will get to other states and hurt the sales of cars made in his state. No man and no industry is an island.

Let us not forget about the banks we put all the money into. Wasn’t one of the reasons we did so was so that people could buy cars ? Yes plenty of cars will still be for sale that is not really the point. There will be millions of fewer consumers able to buy and more still to afraid to do so.

Congress tends to question when it should act and act when it should question they have it ass backwards. Are we just to have a banking system and nothing else? People can get loans just to stare at the paper work and brag about their line of credit and waste it on pointless crap from Sharper Image oh wait didn’t they already go out of business?

Also,how could we be a serious industrial power with a manufacturing base swiftly shrinking down to nothing? We can’t. One of the reasons it was so urgent to save the financial industry is that it makes up FORTY percent of the economy. That is right just swishing money around from one place to another is 40% of the US economy. Wow. It was almost the perfect symbiosis wall street makes the loans main street buys what Detroit sells, then wall street sells derivative based on a package of loans and so for and so on. No wall street goes bust and pulls Detroit down with it.

Save your comments I know that the auto industry has its own issues. Their main problem has been a refusal to change and thwarting all real efforts for more responsible products that it is a whole other post. The fact is their were selling this bad products just fine until recently. I am not going to try an untangle a business model that somehow sells all over the world but still manages to hardly turn a profit.But they were selling because consumers were trading in perfectly good cars for newer ones and now they are deciding to hold on to the one they have.

There is one more thing to consider. The democrats has just started regaining ground in states they have been losing ever since civil rights. Do they want to let auto industry go bust?Of course this is a complex problem with many causes and factors. However, you know in 2012 the Republican candidate will say it was the democratic controlled congress and president(even though he isn’t in office yet) that let the auto industry fail.Can’t you just see the slogans built around this already? This will be a gut shot that the democrats cannot afford after narrowly winning Virginia they can’t turn around and lose Michigan and Ohio or other rust belt states.

They need to save the big three but ask the right questions and get out of them all the things they had been resisting for fifty years. For the good of the nation. The retooling and greening of the auto industry can help the nation and world as a whole and create even more jobs. Perhaps they will even rename their region, I mean who the hell wants to live in the rust belt? Wouldn’t you rather live in the new belt or the green belt?

First things first save the big three.

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