The Domestic Auto Industry...

I am not surprised that the "domestic" auto industry is asking for our (the taxpayers) help. No one with an objective mind and a 4th grade education is lending them money. Literally, no one in the world wants to loan these guys money or buy them...don't you think that should be enough of a reason for Congress to realize that they don't need to sink our money into a dying business?

I am not surprised they are dying...they have been building crap for the last 30 years. Toyota, Honda, Mazda, Audi, BMW, and Mercedes build better, safer, more efficient cars. Surprisingly the execs of Chrysler, GM, and Ford are shocked that they are in trouble. Are these guys missing the big picture or what. It is about choice...when a consumer has the choice to choose a better vehicle at a comparable price...they are going to choose the better vehicle.

I keep hearing these horrible and scary predictions that 10% of the United States depends upon the auto industry for jobs. First off when we talk about the auto industry you have to remember that there are two parts of the auto industry in the United States...foreign and domestic. Surprisingly, (for many) the foreign auto industry in the United States is moving along well, growing, and doing so without labor unions. The domestic auto industry is sucking wind and is knee deep with the labor unions...where as the foreign auto industry is moving along nicely without the labor unions. I think you can all draw your own conclusion from this.

Now, back to economics...if the domestic auto industry does have some hard times...that does not mean the demand for the vehicles they produce disappears. Rather the demand will still be there and other manufacturers (existing or new) will step in to fill the void. What that means is that jobs may shift...but, there would not be a wholesale loss of jobs over a period of time. This is fundamental economics and instead of the media reporting these false and "scary" statements, they need to step back and assess the situation in a factual and non-biased manner. Something I am sure they are incapable of doing.

I think we need to remind our representatives (in both the House of Representatives and the Senate) that they work for us and that they should listen to the intelligent voices of reason out there and not fall for these "scary" predictions based on absolutely nothing. Then again, with most of the elected representatives of this country being lawyers...I am not surprised that they don't understand fundamental economics and business.

I guess we should put it like this for them. If they (insert Representative or Senator name) would not run in the next election would that mean no one else would run...the people still need to be represented...and thus there would be people to step in and take the spot. It is the same way for the auto industry...if Ford, GM, and Chrysler fail...people are still going to need cars and companies are going to step in and fill that void. Maybe that is a little closer to home for our elected representatives...but, we are not talking rocket science here.