Saturday, November 15, 2008

Bailing out the auto industry...

My Andy Rooney take on this:

I'm concerned about America's infatuation with throwing money at things. Money problems? Throw more money in the pit.

Lets take the auto industry: GM is basically out of business because they are losing billions of dollars every month. Why? Well, I'll tell you why: Because people are not buying their cars and trucks, they're buying other manufacturers stuff. GM has lost market share. It's very simple.

So, what does our government want to do? They want to take YOUR and MY tax money and give it to them to "rescue them." See, I am a capitalist. I believe that companies should rise and fall based on how they do in the free market. There is no need to rescue a company because the market has already decided they are done.

I have made a personal decision to buy Toyota when we purchased our last two family cars. I did this based on research, value, repair history, models available, and price. I chose NOT to give my money to GM, and I don't want the government to make that decision for me.

Lets do a comparison: The ice block delivery business was huge in the early 1900's, and there were many men and women employed in this industry. When the refrigerator was invented in 1911 - these companies started to fail. They lost "billions every month". They employed "thousands of hard working Americans". What if the government decided to rescue them? Throw money at the ice block delivery companies to keep them in business? What would have happened to the refrigerator companies? I'll tell you what: It would have significantly slowed PROGRESS. Innovation and the MARKET decided together that having ice delivered to an ice box wasn't as good as a refrigerator. Simple as that.

GM is an ice delivery company. Let them go if they can't innovate - don't SLOW PROGRESS!

Dear Government, let capitalism reign. Let good companies grow and poor companies shrink. Go ahead and let the bubble burst, it'll hurt for a while but the state of the economy in a few years will be much better than if you just prolonged the inevitable. Think of it like a forest fire, it's devastating when it's happening but in a few seasons you will see fresh, new, healthy growth.

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