Stop the Bailouts!

No one can argue that many segments of our economy are suffering. We as a nation need to figure out a way to put the country back on its collective feet. What we don’t need is another industry bailout. We are throwing our financial future away as a nation by continually bailing out bad companies that did a poor job of managing itself. We now have a $700 billion dollar bailout package in place that we have financed through loans from foreign governments. The Treasury Department this week said that now they are not going to follow through with the original plan they had in place. How are we supposed to trust our government with more of our money?

 

We cannot afford to bailout another industry, especially the auto industry. Their failure is not a result of the poor economy. The American auto industry has been failing for years and the bailout will only prolong the inevitable, not help the industry turn around. The auto industry’s biggest problem is that because of the costs of doing business they simply cannot afford to stay in business. The legacy cost along with the ridiculously high labor cost and associated costs in dealing labor unions put a big strain on the American Auto Industry’s ability to compete against foreign automakers.

 

Another problem is that Michigan is one of the worst states to do business in. In fact it is ranked 49^th in the United States as business friendly. That is a problem that must be addressed at the state level. Michigan must look at ways to help all business including the auto industry within the state. Things such as lowering taxes for business, doing away with regulations that are not business friendly, and even lowering income taxes so that Michigan citizens can consume more would help.

 

Lastly lets not forget the CEO’s of the Big Three. They have failed in creating a business model that works. They have not put their company in a position to succeed in any market. They must do a better job in controlling cost and restoring confidence in their products for consumers. These CEO’s must be willing to take drastic steps including moving out of Detroit if necessary. The leadership must step-up to the plate or no matter how much money the government gives them it will not be enough for them to succeed.

 

Enough is enough, now even cities are trying to get a cut of the pie. We simply cannot afford as a nation to bailout every industry that is in trouble. While I was against bailing out the banks and financial sector, I feel that with the way the government forced banks to make bad loans, it was something that needed to be done. The situation with the auto industry is different. The industry while it is suffering more because of the bad economy, they brought on the situation themselves. Both management and the unions need to take a look in mirror and put their own egos and greed aside and do what is best.

 

We must demand that the industry work this out from the inside. The state of Michigan must also get involved to improve the business environment as a whole. Yes that could mean consolidation and or the collapse of one or more of the Big Three automakers. Just like the airline industry it must recognize that times have changed and that it cannot be business as usual any longer. Until such time that the auto industry and the state of Michigan makes real changes in its business model, I am vehemently opposed to any bail for the industry. I ask that everyone write, call, and e-mail your Congressman, and Senator, and demand that no more money be wasted on bailing out failing companies.