Bailout and unemployment are like bad words in the adult world. I could complain about all the attention the major auto companies are receiving, but I’m not. First it was the financial industry and now the auto industry. What next? I’m beginning to see a trend here. I recall the agricultural industry and the technology industry having problems several years ago but I don’t recall a “bailout” plan for them.
After reading a recent article about the troubled auto industry, I’m a bit concerned on how our government is going to attempt to bail them out. First of all, how did the industry get this way? Did they not have a good business plan in place or was all the executives just thinking about how much money was coming in after raising the prices of the autos they sell? Or did they just focus on production and quantity? I look around the Austin metroplex and I see a lot of car dealerships, almost an excessive amount. Shouldn't there be limits on the amount of dealerships that can be in a zip code.
As our national government decide the fate of the auto makers requesting a bailout, let’s talk about the other bad word, unemployment. Based on recent article information , this has been an unfortunate circumstance for many people. The effects of our declining economy are felt strongly at the “next door” level. I have felt the stress of unemployment and it is not a part of life I would like to repeat. Is the government planning on a bailout of those affected by unemployment?
So, it appears that we have been in several recessions over the last several decades, you would think by now we would have figured it out. I guess not. Maybe we need a new way of thinking. Obama. Take the average low middle class household, like mine. I live in a constant recession. Therefore, I try to manage my family, finances, and job in a manner of trying to ensure we have our basic needs taken care of. Sure, I want to be in a better financial situation, (i.e. one of the reasons I’m back in school), but we live in the now and hope for the future. Obama. We are all part of this big business cycle, but all I hear about is the bailout of the companies and not the consumers, the citizens, the people. Who is going to bail us out? Obama.
I say to the new President elect Mr. Barack Obama, proceed with caution, proceed with strength, proceed with hope, proceed with a new way of thinking and proceed with creating a new government business cycle that we all can be proud of.
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The money is coming from…well, us …a blog response.
In my classmates blog “Where is the money coming from” ryt discusses the major issues she, like many other Americans, have with this excessive “bailout” scenario. No, neither the agriculture nor the tech industry received a bailout when they were suffering all those years ago. Of course neither one of those industries had a crony of their own in the presidential cabinet. Henry Paulson didn’t really have the best interest of this country in mind when he suggested a *gasp* $700 billion bailout for the financial industry. He was thinking of the poor, poor CEO’s of these mutli-million dollar companies who would not be receiving their ludicrous bonuses each year. The auto industry simply followed along on their coat tails. It’s almost like watching children begging for help from their parents, “You gave him that much what about me?” And what about the auto industry? They’re requests are meager in comparison to what Paulson’s buddies were asking for. I mean come on what’s $36 billion in comparison to $700 billion, why it’s chump change. But, of course asking for my and your tax dollars does not mean they have to give up life’s little luxuries like private jets. I mean everyone has one of those, right? How embarrassing that these men had to have this ridiculous blunder pointed out to them by Congress while they sat there with a stone face and asked for money.
I think that the when the financial bailout was agreed on it set a horrible precedent for industries of this country. Because, not only did the financial industry want a hand out they wanted it without any strings attached, meaning no government involvement. The auto industry should have kept up with the times and begun making fuel efficient cars about the same time the overseas auto makers were. But, of course the big money wasn’t in fuel efficient cars it was in huge 4x4 trucks and Hummers. Well, sometimes bad financial decisions lead to bad results, and sometimes that’s just a hard pill one needs to swallow.
I agree that President-elect Obama has his work quite cut out for him. I’ll be the first to admit that I’m a little concerned of the challenges he faces ahead of him. But, I’m also hopeful that with new blood come new ideas and a new start to changing the way this old game is played.
As stated in my your blog we have a problem with the bailouts. Everyone is looking to Obama to solve their problems. Why do these car companies and money investors get special treatment, and when does the throwing money around to fix a problem stop. Every time I turn on the news I hear about Obama's new proposal that will cost us even more money yet he is planning on cutting taxes. Has he forgotten about the deficit? And to answer your question the reason that the car companies are in trouble is because unlike foreign companies we have to worry about unions. In the American car companies you can come right out of high school and make more than $100,000 a year with outstanding benefits. Now I went hunting with some high up business men this weekend, most of whom own their own businesses, and they explained how this could be fixed. First the automotive companies must file for bankruptcy. Then when the bankruptcy judge is determining which contracts the company can retain, he voids the contract with the unions. This then makes the cost of cars go down which makes the price go down, which in turn more people buy the cars, and poof no more problem. We are so caught up in the little guy we have given him too much power. So you can complain about high price of cars and what the government is doing but it is you, the people who want the government to do everything for them, that are creating this problem.
Your right Bailout and unemployment are words that are getting thrown around a lot lately and that is not what citizens wants to hear. I'm afraid you may be right about the first bailout starting an unseemly trend. The auto industry has been have trouble these past years and the earlier bailout created the perfect opportunity for them to try to get a huge government bailout. I don't think there should be a limit on the number of car dealerships but I do believe that if the start sinking they should ride it out for good or bad.
Unemployment is an unfortunate situation for any person and it's definitely not a word one wants to use to describe themselves. I would say that the government will probably try to bailout those who fall into unemployment just based on what I've seen so far. As for Obama I hope he takes this nation into a new and successful direction however he might not. The challenges he faces are overwhelming and frankly, although I'm sure he will try his hardest,I believe there is no quick fix for our nation.
I agree with you on some points, but not all.
First off, I do agree with the comment about the previous recessions. It's kind of like the first snow in New England. Everyone forgets how to drive in the snow. It's almost like they've never seen snow even though it happens every year and it will continue to happen every year until Christ comes. And who knows! Maybe even after that. It's time that the branches put their snow tires on. What worked last time? History is there for a reason. Yes, repeating isn't necessarily good, but learning definitely is.
I do not agree that bailouts are bad. The government did bail us out, however small it was. The economic stimulus package was a mini bailout. It was to help put some money out there to get those pumps pumping again. It's called "priming the pump." Leaders do it all of the time. It a first- stage thing. Economic downturns are a cycle, they keep spiraling downward until there's no where left to fall. By putting money into those employing the future unemployed of America, they are attempting to keep them from being unemployed as best as they can. Yes, it seems silly, but it's actually logical, despite the fact that others were ignored a few years ago. A few years ago we weren't so messed up.
Thirdly, it's prudent to keep in mind that we have a capitalist economy. That means people thrive if they're greedy. Communist economies never work because they depend on not greedy people. Wake up Marx, people are incredibly greedy.
I also don't think all of our problems will be fixed with this one man. We put way too much stock in the president, which is why the founding fathers tried hard to give Congress more power. See how long that lasted? Anyway, I am interested to see what President-elect Obama's plans are (it is comforting to note that he doesn't seem to be wasting time), but I'm more interested to see how Christ will fix all of it when He comes. That's the one Man to count on. Men fail. Men get greedy and corrupt. Christ is incorruptible. I vote for Him.
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