Why should automakers be bailed out by the U.S. goverment?
Let's face it. If our companies (small businesses), were on the brink of bankruptcy, would the federal government come to our rescue and bail us out? Absolutely not. Then why should the government bail out U.S. automakers? Is it because they are bigger than us? Is it because more employees would be unemployed?
We can argue the many reasons why the automakers are in such bad shape. Years of rich union contracts being agreed upon, the inability of management to innovate and become competitive with foreign manufacturers, and the demands that government extends to automakers as far as safety, fuel efficiency and environmental concerns are some of the reasons. But aren't these the same types of problems small businesses face on a smaller scale? Costs controls, competition, innovation and government compliance are all issues that are common to most businesses. The few that can figure these challenges out are the ones that survive. The ones that don't go out of business. Like it or not, that is how it works.
So it is hard for me to shed any tears when I hear the CEO from GM who just flew in for a senate meeting in his private jet, making a salary in the millions with hundreds of thousands of dollars more in perks, is asking the government (the taxpayers) to give his company money. As an aside, GM just opened a new factory in Russia. Will the taxpayers' money be used to fund foreign expansion of these companies creating more jobs in Russia and less in the U.S.? It just doesn't make any sense to me.
We can argue the many reasons why the automakers are in such bad shape. Years of rich union contracts being agreed upon, the inability of management to innovate and become competitive with foreign manufacturers, and the demands that government extends to automakers as far as safety, fuel efficiency and environmental concerns are some of the reasons. But aren't these the same types of problems small businesses face on a smaller scale? Costs controls, competition, innovation and government compliance are all issues that are common to most businesses. The few that can figure these challenges out are the ones that survive. The ones that don't go out of business. Like it or not, that is how it works.
So it is hard for me to shed any tears when I hear the CEO from GM who just flew in for a senate meeting in his private jet, making a salary in the millions with hundreds of thousands of dollars more in perks, is asking the government (the taxpayers) to give his company money. As an aside, GM just opened a new factory in Russia. Will the taxpayers' money be used to fund foreign expansion of these companies creating more jobs in Russia and less in the U.S.? It just doesn't make any sense to me.


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