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Originally Posted by DifferentPointofView
This isn't the first time we've had to bail out the big 3, or so my dad said. I think that yes we should bail them out to prevent 30 some odd thousand jobs from being lost, but I think that in the longrun the Automakers should pay the government back for keeping them in business.
The only problem is this is what does this teach our youth? Don't worry if you screw up, because the government will always be there to bail you out?
The big three has a problem with mass producing vehicles and hoping that they'll sell them all at the lots. you loose a lot of money if you don't sell vehicles, especially a large amount and you don't have the money.
Something toyota figured out was don't make more cars than you will sell. Every Toyota that comes out of the factory has been pre-ordered, whether by independent auto dealers, or private orders, and they get already have the cash for every vehicle that rolls out of the factory. So if the dealer doesn't sell the vehicles, Toyota doesn't loose any money. I learned this when my Class took a field trip to the Toyota Plant in Princeton, IN. I also learned about their Andon system that rates them so high in reliabilty. but that's another topic.
Yes, bail them out, because even though the owners of the companies screwed up, its not gonna be them who get penalized, it will be the workers and the people that make the backbone of the Economy like Trikkonceptz that will suffer and get the low end of the bargain. Just penalize the Owners by making them pay back for the bailout. Kinda like a loan. Just ensure the Owners can't cut payroll or jobs to pay for the money back.
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Add a few '0's to that number. The cursory estimate is closer to 3 million.
Remember, it's not just the Big3's employees that lose their jobs. Dealers around the country, and all the companies that produce parts for the big3 vehicles lose work as well, meaning loss of capital, restructuring of companies due to less work, and less income, meaning less room for people to work.
The damage isn't just to the big3, and it's not just to America. What people don't understand is that dropping the big3 will also hurt Japan's economy, China's economy, all the asian countries, basically. Ford has ties/affiliations to UK and European companies, as does GM and Chrysler, so it will also affect them.
The most noticeable effect will be at home, and the most immediate. But it doesn't just stop at our shores. The next time you change your alternator belt, look at the name on the alternator... It's probably Mitsubishi. (Mitsuba is the same.)