Tuesday, November 18, 2008

Save my life, I'm going down for the last time.

What to do? What to do?

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.


A Young American said...

If our government bails out the auto industry, where will the bailing out stop? What about airlines? They've never been aided! Circuit City? Shouldn't they be helped?

Matt @ The Church of No People said...

Tony - have you noticed how everyone was so urgent to get the $700 bil bailout passed right now because it was an emergency? That has been weeks ago, and although the money hasn't been distributed, the world has not ended. The big 3 are sounding the end of the world alarm too. "They can't wait until January! We have to bail them out now, or face a catastrophe!"

I like to stay politically ambivilant at my church and on my blog, but I can't resist commenting when someone else is speaking my language.

Thanks for the encouragement. I'm not ambitious enough to post every day, but I feel pretty good about getting 3, sometimes 4 posts a week in. I get a slow trickle of comments, so I like to let the posts stay up top for a couple of days anyway rather than bury them right away.

Deena said...

Thanks so much for this post! Refreshing to know I'm not the only one who thinks like this...

People (and companies) don't realize we need to live within our means.

Chris Denning said...

I was encouraged this week by a short article in our small town paper. Apparently the locally owned banks would not accept any bailout money, though they were highly pressured to do so. They were keen enough to notice the strings attached and all the implications therein. Thankfully, there are some business people with integrity.

scottmurdock said...

I'm already tired of people blaming "greedy" corporate execs for the failure of the big 3. a large share of the responsibility for the collapse of the US auto industry lies heavily on the shoulders of the UAW. I know it would not be workable and the supremes would not let such restrictions stand, but any "bailout should only be provided with one caveat;that the auto industry only operate as an open shop, with no trade unions representing employees.the dark old days when labor unions were neccessary to help workers avoid exploitation by corrupt and uncaring ownership are long past. my 2c.