What's a few more billion...

While we are literally throwing billions around like pennies...why not just throw a few more billion at the U.S. auto industry? I stated clearly in my November 18, 2008 post that bailing out the auto industry was a big mistake and that it would just lead to more and more billions.

Let's be honest the U.S. auto industry could be weathering this economic downturn quite well if they had been managed effectively over the last few decades. There are thousands of companies out there (big and small) that are weathering this downturn and not turning to the U.S. government for a bailout. So, why is the U.S. auto industry turning to the government...the reason is pretty clear...they suck. Seriously, they have been managed so poorly that no one (outside of the U.S. government) is willing to provide loans to them. Think about...would you loan money to GM right now? How about Chrysler? Maybe Ford? I certainly wouldn't...they would only ask for more later. I certainly would not expect my money back any time soon.

So, the companies have been mismanaged and now we (the taxpayers of the U.S.) are being called upon to bail out the companies. This is beyond ridiculous. These companies are publicly traded (or were in the case of Chrysler) and operated in our capitalistic system successfully for decades. Decades until they lost ground to the competition. Most companies, when they lose ground to competitors, have to get creative to save their business. They can come up with innovative products, reduce price, cut costs, etc. All of these things are things the U.S. auto industry should have been doing since the late 80's. However, they have not...and now they are in trouble...I am not surprised.

We need to stand firm and let our elected officials know that enough is enough. We need to stop loaning them money and let the free market work. If they leave the market (go out of business) so be it. That won't mean our economy will fall into some abyss...usually when businesses collapse other businesses fill in. This means that other companies (Toyota, Honda, Audi, Hyundai, Mazda, etc.) will fill in the gap and provide vehicles to U.S. consumers. Many foreign auto makers (Honda, BMW, Nissan, etc.) are already producing cars in the U.S., buying U.S. parts from U.S. suppliers, employing U.S. citizens, etc. This is how the free market works.

The U.S. government needs to butt out of the free market and let the market work. If they continue to mess with the free market; we could be facing some serious and lasting problems for generations to come. Let's be honest...most politicians are lawyers...and most politicians have been in politics for a long time...would you bring in a politician to run your business? I wouldn't...and we need to remember this when it comes to election time.