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.
Showing posts with label Auto Industry. Show all posts
Showing posts with label Auto Industry. Show all posts
Wednesday, February 18, 2009
Friday, December 05, 2008
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.
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.
Tuesday, November 18, 2008
Speak Up...
Just some thoughts from Mark Farage concerning today’s difficult economic environment and politics. I am not sure if you are like me but, recently every time I open up a news website it looks like the U.S. House of Representatives or U.S. Senate is talking about bailing someone out or throwing a billion dollars at this problem or a billion dollars at that problem. It seems like our elected representatives are becoming very casual with our hard earned money. Perhaps too many of them have been working on “the Hill” too long and have forgot what it is like to have a real job. When you have a real job it sure seems crazy that companies are getting bailed out for making bad decisions. In the real world if you make a bad decision you usually have to face the consequences, sometimes very harsh consequences.
So, I am asking all of you to take time and talk with your elected officials. Remember that every elected official serves on behalf of their constituents and it is our job as the constituents to let them know how we feel on something. If we sit back and say nothing…don’t be upset when something happens that you are not too pleased with. Only through raising our voices can we be heard as constituents and tax payers. It is not enough to just vote when Election Day comes…we must all be active and take an active role in the politics of our great country on a daily basis if needed.
I consistently review what the U.S. House of Representatives and U.S. Senate are voting on or discussing and I take time to send emails to my elected officials. My voice is being heard, is yours? The following links will take you to the U.S. House of Representatives and the U.S. Senate. I encourage you to contact your elected officials and let them know how you feel on certain subjects.
United States House of Representatives: http://www.house.gov/
United States Senate: http://www.senate.gov/general/contact_information/senators_cfm.cfm
Right now I am very concerned about the “talk” of bailing out the U.S. auto industry or certain failing members of that industry. I am appalled that we as American taxpayers are going to be potentially liable for the mistakes these companies have made over the last three decades. We are quickly becoming a nation of “bail outs” and the last time I checked that is not what this country was founded on. We are a nation built on “opportunity” and the freedom to pursue that opportunity. To me it would appear that GM and Ford have not made good on that opportunity and in a free market under the rules of capitalism you lead, follow, or get out of the way. Ford and GM have certainly not led and I don’t think they have even followed successful automotive companies like Honda, Audi, BMW, Toyota, etc. So, that means it is time for them to get out of the way.
Anyway, I have attached a message I sent my elected officials…use it as a base for your own personal message or laugh at it and chalk it up to the musings of a young Capitalist with dreams of the United States returning to a free market.
Sen. Alexander and Sen. Corker:
I am writing to you in regards to the discussion on the Hill about the possible bail out of part of the United States’ automotive industry.
I implore you to vote against any measure that would amount to a "bail out" of the industry or members of the industry. It is absolutely astonishing that members of the U.S. House of Representatives and U.S. Senate are seriously talking about bailing out another industry in today's economic situation.
As a constituent and young professional in Tennessee; I am amazed that such a measure would even be discussed. In the free market world of Capitalism you lead, follow, or get out of the way. It is time for GM and Ford to get out of the way. For the last 30 years their management has made poor decisions, produced poor products, and made poor decisions when dealing with the UAW. It is no wonder that they are now in trouble.
Amazingly companies like Toyota, Audi, BMW, etc. are functioning fine in the current economy and have cash reserves to make it through difficult times. They operated as a business should...smartly while ensuring that their management decisions are not just made for next quarter's results but, rather for the next decade's results.
I fully understand the impact that our economy would face if GM and Ford were to sink into bankruptcy; however, the alternative is not any better. Dumping billions of hard earned tax payer dollars into their coffers is not going to change their management and will not suddenly make their products more appealing. Let's face it...the stubbornness and inability of GM and Ford to respond to today's market and the demands of today's consumers is no fault but their own.
The inability of the $700 billion financial bail out plan to boost the economy should certainly serve as warning to not make the same mistake with the auto industry. If money is given to them they will only ask for more later...and it will serve as nothing but an incentive to continue their poor business practices.
If GM and Ford fail it will leave a hole in the market and new companies will be able to take advantage of the hole. That is the essence of a free market and Capitalism. It is absolutely irresponsible for the federal government to bail out an ailing company because of decades of bad decisions.
I am a young professional with a MBA and I work for one of Tennessee's leading examples of innovative business success...FedEx. I know that the loss of GM and Ford would put pressure on FedEx...that is fact. However, FedEx will survive because our leadership has been proactive over the last three decades ensuring that we adapt and remain flexible to the demands of the international marketplace. GM and Ford have not...thus, it makes absolutely no sense to bail them out. There are hundreds of examples of companies in Tennessee that are surviving and thriving in today's harsh economic times and it is because the management of those companies have made smart decisions, planned for the future, and maintained flexibility in all they do.
I see absolutely no reason to bail out GM or Ford and neither should you. You as an elected official represent your constituents and your constituents do not want you to vote for any measure that would "bail out" the auto industry. Enough is enough it is time for companies to face their own actions or inaction. We are quickly becoming a nation of "bail outs". Who is next…the individual home owner because he/she bought a house they could not afford...sure…makes sense. Let's reward people for making bad decisions. It is time that we get back to the principles of limited government; the same principles that helped our country prosper through the darkest hours. Oversight, reform, and regulation are all keys to a successful economy but, no economy has been successful when the taxpayer begins bailing out private industry.
We as your constituents and as American taxpayers work hard for our money. My family has never owned an American car nor will I. I certainly don't want to pay for one now when I won't even be driving it. Let common sense prevail here and let companies sink or swim on their own merits. If we cross the line any further we will soon have every industry from fast food to luxury yachts lining up at the government window for a "bail out".
You represent the hard working people of the State of Tennessee...vote as we would...vote against a bail out. Remember that democracy still works and change can come at every election.
If a business is truly successful they will be able to weather any economic recession...or they will be flexible and adapt to a new reality. Let Capitalism and the free markets work as they are intended.
Thank you in advance for your time and consideration.
Your constituent and a hard working taxpayer of this great country.
Mark Farage
So, I am asking all of you to take time and talk with your elected officials. Remember that every elected official serves on behalf of their constituents and it is our job as the constituents to let them know how we feel on something. If we sit back and say nothing…don’t be upset when something happens that you are not too pleased with. Only through raising our voices can we be heard as constituents and tax payers. It is not enough to just vote when Election Day comes…we must all be active and take an active role in the politics of our great country on a daily basis if needed.
I consistently review what the U.S. House of Representatives and U.S. Senate are voting on or discussing and I take time to send emails to my elected officials. My voice is being heard, is yours? The following links will take you to the U.S. House of Representatives and the U.S. Senate. I encourage you to contact your elected officials and let them know how you feel on certain subjects.
United States House of Representatives: http://www.house.gov/
United States Senate: http://www.senate.gov/general/contact_information/senators_cfm.cfm
Right now I am very concerned about the “talk” of bailing out the U.S. auto industry or certain failing members of that industry. I am appalled that we as American taxpayers are going to be potentially liable for the mistakes these companies have made over the last three decades. We are quickly becoming a nation of “bail outs” and the last time I checked that is not what this country was founded on. We are a nation built on “opportunity” and the freedom to pursue that opportunity. To me it would appear that GM and Ford have not made good on that opportunity and in a free market under the rules of capitalism you lead, follow, or get out of the way. Ford and GM have certainly not led and I don’t think they have even followed successful automotive companies like Honda, Audi, BMW, Toyota, etc. So, that means it is time for them to get out of the way.
Anyway, I have attached a message I sent my elected officials…use it as a base for your own personal message or laugh at it and chalk it up to the musings of a young Capitalist with dreams of the United States returning to a free market.
Sen. Alexander and Sen. Corker:
I am writing to you in regards to the discussion on the Hill about the possible bail out of part of the United States’ automotive industry.
I implore you to vote against any measure that would amount to a "bail out" of the industry or members of the industry. It is absolutely astonishing that members of the U.S. House of Representatives and U.S. Senate are seriously talking about bailing out another industry in today's economic situation.
As a constituent and young professional in Tennessee; I am amazed that such a measure would even be discussed. In the free market world of Capitalism you lead, follow, or get out of the way. It is time for GM and Ford to get out of the way. For the last 30 years their management has made poor decisions, produced poor products, and made poor decisions when dealing with the UAW. It is no wonder that they are now in trouble.
Amazingly companies like Toyota, Audi, BMW, etc. are functioning fine in the current economy and have cash reserves to make it through difficult times. They operated as a business should...smartly while ensuring that their management decisions are not just made for next quarter's results but, rather for the next decade's results.
I fully understand the impact that our economy would face if GM and Ford were to sink into bankruptcy; however, the alternative is not any better. Dumping billions of hard earned tax payer dollars into their coffers is not going to change their management and will not suddenly make their products more appealing. Let's face it...the stubbornness and inability of GM and Ford to respond to today's market and the demands of today's consumers is no fault but their own.
The inability of the $700 billion financial bail out plan to boost the economy should certainly serve as warning to not make the same mistake with the auto industry. If money is given to them they will only ask for more later...and it will serve as nothing but an incentive to continue their poor business practices.
If GM and Ford fail it will leave a hole in the market and new companies will be able to take advantage of the hole. That is the essence of a free market and Capitalism. It is absolutely irresponsible for the federal government to bail out an ailing company because of decades of bad decisions.
I am a young professional with a MBA and I work for one of Tennessee's leading examples of innovative business success...FedEx. I know that the loss of GM and Ford would put pressure on FedEx...that is fact. However, FedEx will survive because our leadership has been proactive over the last three decades ensuring that we adapt and remain flexible to the demands of the international marketplace. GM and Ford have not...thus, it makes absolutely no sense to bail them out. There are hundreds of examples of companies in Tennessee that are surviving and thriving in today's harsh economic times and it is because the management of those companies have made smart decisions, planned for the future, and maintained flexibility in all they do.
I see absolutely no reason to bail out GM or Ford and neither should you. You as an elected official represent your constituents and your constituents do not want you to vote for any measure that would "bail out" the auto industry. Enough is enough it is time for companies to face their own actions or inaction. We are quickly becoming a nation of "bail outs". Who is next…the individual home owner because he/she bought a house they could not afford...sure…makes sense. Let's reward people for making bad decisions. It is time that we get back to the principles of limited government; the same principles that helped our country prosper through the darkest hours. Oversight, reform, and regulation are all keys to a successful economy but, no economy has been successful when the taxpayer begins bailing out private industry.
We as your constituents and as American taxpayers work hard for our money. My family has never owned an American car nor will I. I certainly don't want to pay for one now when I won't even be driving it. Let common sense prevail here and let companies sink or swim on their own merits. If we cross the line any further we will soon have every industry from fast food to luxury yachts lining up at the government window for a "bail out".
You represent the hard working people of the State of Tennessee...vote as we would...vote against a bail out. Remember that democracy still works and change can come at every election.
If a business is truly successful they will be able to weather any economic recession...or they will be flexible and adapt to a new reality. Let Capitalism and the free markets work as they are intended.
Thank you in advance for your time and consideration.
Your constituent and a hard working taxpayer of this great country.
Mark Farage
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