my thoughts on the gm situation and i want to know what you think
you know part of me believes that we are on our way not to economic recovery but to a world wide depression that could make the depression of the 1930's seem tame while at the same time i think that we could pull out of this within a year. i would be interested in reading what any of you think because i just don't know.
back to the car companies, gm in particular. here is my take: i think that any company needing tax payer assistance must be held to some standards. (i will get to the banks and insurance companies later) by that thinking, gm must come up with a viable plan to start on the road to recovery. gm has been making bad decisions for a couple of decades by not concentrating on building cars that americans want. they make superior trucks and suvs and i have bought one, a 1993 gmc Z-71 pickemup truck that was, dollar for dollar, one of the best vehicles i have ever owned but trucks really should be for a very limited market; cars are what most people drive. every year, honda and toyota sold more cars than gm, the japanese cars ran better, looked better, got better gas mileage, lasted longer, were better appointed inside and had higher resale value. did gm (or ford or chryler for that fact) look at what was happening and try to bring cars of equal quality and reliability? hyandia (sp) is another prime example; they started, what? 10, 15 years ago? at first their cars were crap but each year they got better and better and better and now their ratings are sky high. if a south korean company can start from scratch and within two decades become not only viable but a leader then why couldn't gm or chrysler? it is not the unions fault that the powers that be in those companies didn't design and build superior cars. ford on the other hand has increased their small car department and the FIT is doing quite well in europe and probably will here as well. the new mustang is a much better car than the mustang of the 90's.
the car makers of america and all the suppliers and dealers make up about 16% of the american work force and account for a huge percentage of gnp. how can we let them fail? also our national security is tied to the car makers, they provide vehicles for the military as well. how can we let them fail?
BUT on the other hand, if a company makes bad decisions year after year, makes bad products year after year, squanders money year after year HOW CAN THEY NOT FAIL? if you or i had a business that did those things we WOULD GO OUT OF BUSINESS AND GOOD RIDDANCE TO US. right? so how can they not fail? should we, the taxpayers, keep pouring money into companies that will continue a proven bad business plan just because the companies are "too big to fail?"
and why was not the same kind of pressure put on the banks and aig? why do we keep throwing money at them when they have cost us much more than the car companies? why are we willing to have thousands of blue collar workers be put on the bread lines when we coddle the bankers and the wall street fat cats. obama makes the head of gm step down but citibank and boa keep rocking along with the same management as before. why is that gander not as good as that goose?
(personally i think, wagner at gm, did something or said something that brought the hammer down on him. flying to the d.c. meetings in his private jet didn't help his cause at all but i think it was something more and he pushed obama and thought he could get away with it but obama has shown he is willing and able to play really hard ball. besides it was a "shot across the bow" for all chief executives of all the companies looking for tax payer money and you can rest assured that they all took notice)
i have no answers. i have questions. i have worries. i have anger. i have concern for my country. i think the american public better start paying really close attention and start getting more and more information. the power still rests with the people as it always has but the people must realize that and use their power. the power of the vote, the power of the protest, the power of unrest.
i always had a certain amount of regret that i was born when i was, i missed the great events that shaped world history. i was a baby during wwII, too old for vietnam, wasn't here for the civil war or the american revolution or the french revolution or wwI or roman empire etc etc, but, sure as shit, i could be here for the fall of america. bummer. especially since i am old and not really ready for the barricades but if it comes to that, well, count me in. i won't be violent and i won't hurt my fellow man but i bet i could come up with some mischief to perform.