Oh my. Sean is not happy with me. Michael is not happy with me. I am not entirely happy with me.
We had the, “Should the government give loans to the car industry?” talk a few minutes ago. “If GM doesn’t get the money it will go bankrupt. Who’s going to buy cars from a bankrupt company?” said Sean. “And they have to keep making the Corvette!” said Michael. “Nowhere in the Constitution does it say the job of government is to float loans to car companies,” said I.
A brouhaha ensued. I will not recount the gory details here, but suffice it to say my boys are not speaking to me.
No one wants to see GM, Ford or Chrysler go out of business, least of all someone whose husband works for one of them. It would be devastating for the country’s economy and the personal economy of nearly everyone I know. Millions of people would be out of a job and the ripple effect would be felt far beyond Detroit. And there is a humongous part of me that wants to see Congress give the loans to the Big Three because I don't want to see the once-mighty GM file for Chapter 11.
But when I unemotionally (and believe me, that’s a trick) look at the issue there is no way I could support the loans. I don’t think Congress should have given the loans to Chrysler in the 80’s, I don’t think they should have passed the $700 billion bailout last month for Wall Street, and I don’t think they ought to do it for my husband’s beloved industry. What in the world is Congress doing messing around in private businesses? Like they’ve ever solved anything or done anything with great efficiency…
If the loans go through one way I’ll soothe myself is knowing that Congress is partly to blame for GM’s demise. Their complete lack of gumption to do anything about Japan’s manipulation of the yen, the passage of onerous laws (CAFE standards, anyone?) and a refusal to address the corporate tax rate have done little to help the domestic auto industry.
The bottom line, though, is the government has defined roles and giving money to companies on the brink of bankruptcy isn’t one of them. I know that view won’t win me many friends at GM, but it might make America a better country for my children.
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Michael Barone's wrote an interesting piece about this yesterday.
Theoretically, I agree with you. But as long as the government is going to bail out all the other companies, the car industy might as well get a piece of it too. However, if they don't, would there be a chance you'd move back here??!!!!
ReplyDeleteHi friend!
ReplyDeleteI know; I'm all torn up about it. Theoretically I think it's a bad move but if they're handing out money, give some to GM!
Amy asked the same thing about moving back. She said she was okay with GM going under if it meant we got to move back to Georgia!
What!!!! TREASON!!!!! Christy! How could you! Amy! How could you!!! We need you! We need your southern sensibilities! I'll not hear of it. lalalalalalalalalalalalalalal - I can't hear you - lalalalalalalalalalalalalalal
ReplyDeleteTHERE.
Thanks for the fun comment, Anonymous (like I don't know who wrote that!). You know we love you, too!
ReplyDeleteI just forgot to put MG - I'm shocked that you would know that such an infantile comment would come from me.(!) hehe
ReplyDeleteI have reservations too, Christy, even though I am praying for a bail out...since my family's next meal depends on it. If we get the bail out, how long do we last then? A bailout doesn't guarantee that the economy turns around and people will start buying cars again. It also opens the door for more bailouts...companies, municipalities, etc. to want/expect a bailout. With that said, I do really feel that the fall of the auto industry would so negatively impact this nation's economy that we may not recover...from the loss of tax revenue (GM & individuals), $'s into the economy, the nation's GNP and GDP #'s, unemployement, and etc. These are such difficult times.
ReplyDeleteMary L,
ReplyDeleteYou know I completely agree with you, as my next meal also depends on the success of GM. It is such a catch-22.
The decline of GM will not send a ripple through the economy – it will be more like a tsunami.
It’s a good time to remember who holds the world, including GM, in His hands.
Maybe the best idea is to let GM declare bankruptcy, and completely overhaul ALL of their union contracts. GM currently spends over $2,500 per car sold on health care, etc... compared to Toyota's $500 per car. I think the bailout will only prolong the inevitable pain. We need to see what the unions will accept when they are forced to start from ZERO like everyone else. Maybe then they will have a better picture of what they are truly doing to their nation's economy. God help Michigan, the Duffys and the Braatzs. I could not be more serious. This is gonna get UGLY.
ReplyDeleteMG