Declan McCullagh has written a great article, Rewarding Failure: Why Stop With Big 3?, supporting the $25 billion bail-out of the failing auto-makers in Detroit.
I could not have said it better myself.
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5 comments:
What a silly, uneducated argument. The car industry represents the pinnacle of the entire economy. It employs the most people at the highest wages, manufactures the second most expensive product that a majority of people buy (the first being homes), and is the strongest pillar of the Fordist philosophy: pay your workers enough to afford what they produce. A failure in this sector would be a psychological blunder that would threaten the very core of the economy, and call into the question Fordist regime.
A bail-out is the responsible thing to do, if it is done right. Chrysler was bailed out in 1983 as a result of the previous engergy crisis, and did well as a company up until the last couple of years. A bail-out would give the big 3 the chance to nagivate away from their cheap-oil automobiles/SUV strategy to a fuel efficient strategy. This will be much better than the depression that would result if the entire system were to come crashing down because some right-wing moralists think it is best to let economic fortune (rising oil prices) destroy the entire economy.
"What a silly, uneducated argument. The car industry represents the pinnacle of the entire economy. It employs the most people at the highest wages, manufactures the second most expensive product that a majority of people buy (the first being homes), and is the strongest pillar of the Fordist philosophy: pay your workers enough to afford what they produce. A failure in this sector would be a psychological blunder that would threaten the very core of the economy, and call into the question Fordist regime."
Wrong. Foreign car companies are building cars in the south and are not going out of business. These plants are not unionized, and the workers still make a decent wage. . .and will also still have jobs in 6 months, unlike the unionized workers in Michigan. Also, the big 3 are no longer the pinnacle of the american economy. They do not even come close to employing the most people, and if employing the most people at the highest wages is the name of the game, then maybe all business should pay their workers millions of dollars until they all go bankrupt too.
"bail-out is the responsible thing to do"
Bailing out a failing company is irresponsible and immoral. If these companies went bankrupt they are not going to dissapear, others will buy up the valuable portions and the unions would need to renegotiate contracts with the new owners.
" A bail-out would give the big 3 the chance to nagivate away from their cheap-oil automobiles/SUV strategy to a fuel efficient strategy."
Why not just keep buying japanese cars since they've already figured out how to do it, make money doing it and employ thousands of people in the southern states?
"This will be much better than the depression that would result if the entire system were to come crashing down because some right-wing moralists think it is best to let economic fortune (rising oil prices) destroy the entire economy."
Depression is coming anyway. Oil prices have tanked. And these companies are not going to stop shipping jobs overseas anyway.
W"rong. Foreign car companies are building cars in the south and are not going out of business. These plants are not unionized, and the workers still make a decent wage."
Yes, because they made fuel-efficient cars BEFORE the oil crisis.
".and will also still have jobs in 6 months, unlike the unionized workers in Michigan."
Only because they are lucky that Japanese culture tends toward gas efficient cars. If they were producing gas guzzlers before the oil crisis they would be in the same mess.
"Also, the big 3 are no longer the pinnacle of the american economy. They do not even come close to employing the most people, and if employing the most people at the highest wages is the name of the game,"
The pinnacle is always the smallest, Josh. I didnt say they employed the most. I said their wages represent the pinnacle. All other wages compete for those positions, hence driving up the average wage at the bottom.
"Bailing out a failing company is irresponsible and immoral."
Not if the alternative is depression. Then it is moral and responsible.
"If these companies went bankrupt they are not going to dissapear, others will buy up the valuable portions and the unions would need to renegotiate contracts with the new owners."
So you think so. So you think so.
"Why not just keep buying japanese cars since they've already figured out how to do it, make money doing it and employ thousands of people in the southern states?"
Because people like supporting their next door neighbors. It's called economic charity. I.E. not being a dick.
"Depression is coming anyway. Oil prices have tanked. And these companies are not going to stop shipping jobs overseas anyway."
Then revolution might be a coming too...
The liberals represent the wing of the American capitalist class that is in favor of social programs to stop revolution. This is why they have been given reign for 2008.
Schiff can ramble on "sane economies" all he wants, but when it gets really bad, like 6773 1990 dollars for a yearly income for a family in 1920, revolution becomes a real possiblity. And I dont mean a leninist revolution, with an organized vanguard class leading the way. I mean a spontaneous revolt by the working class.
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