I'm sure it would come as no surprise to any who read my blog...I'm a free market kinda guy. Businesses are created and collapse daily in our country. We're capitalist...it's what we do!
Our big, fat government has stepped in and attempted to save not only insurance companies and investment banks in recent days but is currently working on a rescue for troubled mortgage holders. People, mind you, who took on mortgages they couldn't afford or wouldn't qualify to receive in a less covetous economic environment.
Up next? Detroit. The Big Three. The Heart of America. Today, the heads of Ford, Chrysler and GM go to Capitol Hill with hat in hand. Begging for help from the taxpayers because 'if we fail, America fails!' Baloney!
If the American auto industry fails, they have themselves to blame. Listening to talk radio on the way to work this morning, I heard caller after caller crying about Fair Trade Agreements and America First campaigns. As a nation, we need to step up and realize what made us great in the first place. It sure didn't happen because we whined for the world to buy what we made...absolutely not. We became a superpower and leader in the world markets by applying the fundamental principles of economics in a free economy. Make the best products the world wants for the best price...and they will buy them...and want more.
Detroit is in trouble because they have failed to realize and adjust to the global economy we all now live and work. Honda, Toyota and Nissan have all made moves to the U.S. and made them profitable because they build cars people want. The Big Three have become complacent and less innovative since nearly collapsing in the early 1980's. Unions have ignored the need for leaner, more productive work forces and focused on grabbing more and more of the profit share. Fundamentally, companies that don't adjust to market forces in the right directions fail...that's the way the free market works.
I personally work for a company dependent on the auto industry...it's what we do. If Detroit fails, will our company? Maybe, maybe not. We have constantly studied and updated our business plan to address the situation if the American auto industry does go under. That's all that we control in the situation. But from what I've seen from my perspective in dealing with Detroit...I'm amazed they've made it this long.
A short-term loan from American taxpayers will not fix Detroit. No, it will only delay the inevitable until their path is changed. A path that only Detroit can change. It won't be easy. It won't be quick. But if capitalism is to continue to thrive, businesses can't depend on the government to save them in tough times...that's the true path to socialism.