Question of the Day: $50b Loans for American Jobs?
Ford, GM and Chrysler want $50b worth of low-interest federal loans. At the moment, the loans are specifically restricted to adapting 20-year-old manufacturing plants to build fuel-efficient cars. The money is, in the parlance, “earmarked.” Detroit would like you to believe that the limited use makes the moola a “green” initiative rather than a bailout. But it’s obvious enough (if you think about it) that any money spent re-tooling factories saves The Big 2.8 money that they would have spent re-tooling factories. Which can then be spend on whatever they damn well please. And that brings us to the inconvenient truth that a lot of Detroit’s products, and billions of dollars worth of parts that make their products, don’t come from the U.S.A. In the pre-election shuffle, Barack and friends are making noises that the federal loans will protect American jobs. But aren’t The Big 2.8 complicit in eliminating American manufacturing jobs? And if it’s all about jobs, well, there are roughly 400k Detroit auto workers. Why not just give the workers an option of a $125k buyout apiece, courtesy of Uncle Sam? Or spend the $50b on lowering barriers for other automakers to build in the U.S. Seriously. What’s your idea for a better way to spend this money to create/protect American automaking jobs?
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How is eight years of the Bush administration considered "the last bailout?"
A Japanese company ( Toyota ) and an American company (GM) decided to have a canoe race on the Missouri River. Both teams practiced long and hard to reach their peak performance before the race. On the big day, the Japanese won by a mile. The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action. Their conclusion was the Japanese had 8 people rowing and 1 person steering, while the American team had 8 people steering and 1 person rowing. Feeling a deeper study was in order, American management hired a consulting company and paid them a large amount of money for a second opinion. They advised, of course, that too many people were steering the boat, while not enough people were rowing. Not sure of how to utilize that information, but wanting to prevent another loss to the Japanese, the rowing team's management structure was totally reorganized to 4 steering supervisors, 3 area steering superintendents, and 1 assistant superintendent steering manager. They also implemented a new performance system that would give the 1 person rowing the boat greater incentive to work harder. It was called the 'Rowing Team Quality First Program,' with meetings, dinners, and free pens for the rower.. There was discussion of getting new paddles, canoes, and other equipment, extra vacation days for practices and bonuses. The next year the Japanese won by two miles. Humiliated, the America n management laid off the rower for poor performance, halted development of a new canoe, sold the paddles, and canceled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses and the next year's racing team was out-sourced to India . Sadly, The End. Here's something else to think about: GM has spent the last thirty years moving all its factories out of the US , claiming they can't make money paying American wages. TOYOTA has spent the last thirty years building more than a dozen plants inside the US . The last quarter's results: TOYOTA makes 4 billion in profits while GM racked up 9 billion in losses. GM folks are still scratching their heads. IF THIS WEREN'T TRUE, IT MIGHT BE FUNNY.
I live in Detroit. I work for an automotive supplier. I am not in favor of the bailouts. But they are coming. My plan? Get the EFF out by 2013! Here we go with "Bailout to Nowhere"