Do you think bailouts for big business is the answer to the economic crisis?
By shamsta19
@shamsta19 (3224)
United States
December 11, 2008 1:34pm CST
It just doesn't seem to make sense to me. I mean there is no doubt industry is struggling right now. The bill on the table now is the bailout plan for the auto makers industry. Does it even make sense to invest millions into the auto industry when, in this time of crisis, no one can afford a new car? To me it just seems like the same old "trickle down" theory where we are supposed to expect this money to somehow affect everyone's pockets, when in essence, the money will be pocketed by big industries.
I mean how many jobs are we talking about? How many people are suffering right now due to this crisis? Wouldn't it make more sense to put money in the pockets of the consumer and not the businesses? How can anyone buy a car without the money? We have been in a recession for years and our government is just now addressing the issue because big business is being affected. The ones who are affected the worst are the ones our government identify with the least. The everyday people who are struggling to keep the lights on right now, and keep food on the table. If there is a failure in our economy, why focus on those who have money and not on those who are spending their last dime?
We are the consumers of these products. We are the backbone of any industry as our spending is what keeps them going. Why spend Millions to keep the business afloat, when the population is struggling? Eventually the businesses will die anyway if we continue on this downward economic spiral.
I'd like to know what everyone thinks about this.
2 people like this
7 responses
@uath13 (8192)
• United States
11 Dec 08
I would so love to be the one on capitol hill yelling " SO EXPLAIN TO ME HOW GIVING YOU THIS MONEY WILL KEEP YOU FROM LAYING PEOPLE OFF WHEN THE PRODUCTS THEY MAKE AREN'T SELLING ANYWAYS!". It's a buncha B.S. As soon as they get the bailout money they won't need the excuse anymore & they'll start closing doors. There's no reason to keep people working to produce cars that are just going to sit & rust on a lot & they know it. They're just hoping for a big piece of BAIL OUT PIE. The goverment only worries about the big companies bacause those are the ones that line the corrupt goverment officials pockets with incentives & kickbacks. "Sure I'll give you millions of taxpayer dollars if you'll hand some of it back to me under the table.". Get this... their solution to the overall problem...start giving out credit again because the population no longer knows how to function without it. SURE start the whole bloody process over again building an economy on credit with no real capital so we can do this AGAIN in a few years the next time something ( like skyrocking gas prices ) triggers it. WHO BEAT THESE PEOPLE WITH THE STUPID STICK & WHY ARE WE FOLLOWING THEM?
3 people like this
@shamsta19 (3224)
• United States
11 Dec 08
I keep saying that. Why are we following them? When our economy fails, when the average American can't afford health care, when our educational system is in shambles, and these idiots are actually contemplating bailing out big businesses that are bound to fail if this trend continues.
Like I keep saying as well, these politicians have no idea what it is like to live like the average man or woman. They are so used to those kickbacks they lost touch with reality, or don't care about it. Their "reality" is nothing like what we are experiencing. Maybe "The Great Recession" is what we need to wake us up and see how we are being bamboozled by our governments.
1 person likes this
@live2chance (8)
• United States
11 Dec 08
For the past year the government has been trying to "save" the economy, with more billions in bailouts and interest rate cuts. I dont think they should be bailing all these businesses out. These businesses need to learn the hard way how to make it otherwise they will take the money and lose it again. Even in this time of economic weakness there are rumors going around that Merrill Lynch CEO wanted a 10 million bonus...why?!?! Then after AIG recieved a bailout there were reports they sent there executives to a "training seminar" for hundreds of thousands of dollars. This so called seminar was at an exculsive resort and included expensive meals and massages. After all the money they deal out the dollar is going to be worth nothing. So like our grandparents and parents we are going to have to learn to be more self sufficent. Our needs won't be laptops, cellphones, XBox, and Wii's but food, clothes, and shoes.
3 people like this
@shamsta19 (3224)
• United States
11 Dec 08
Exactly! What about the small businesses who fail every year? I don't see any bailout for them. Nor do I see them asking for handouts when their business falls under. If a business fails, then they fail. Apparently there was a lack of planning and development for that particular business. The same should be true for ANY business whether it is the ma and pop grocery or the Multi million dollar corporation. Maybe we should all start concentrating on the needs and not the wants. With the current state of our worldwide economy in decline, we may all be standing on a soup line soon.
1 person likes this
@mac1946 (1602)
• Calgary, Alberta
12 Dec 08
I have to agree with you,bailing out the big outfits is not the answer.
The entire problem is interest rates for credit cards,banks,insurance companies and the like that charge double digit rates.
The governments should control this so that we can afford to keep the big companies working.
A small profit is better than none,but they can't see it.
thank you for the discussion.
Many Blessings.
2 people like this
@shamsta19 (3224)
• United States
13 Dec 08
And thank you for the response. I have said before, our government is not in tune with the needs of the average citizen. Government is big business as well so they only see things in terms of profits and commercial gains. How can they serve the needs of the common person? This is why it is so comical that people had opposed (or condoned for that matter) Barack Obama. While I am glad we have an African American president, he does not control the finances of this country, The Federal Reserve Bank does. And they are the biggest crooks in history and will continue to keep us all enslaved with tax law instead of whips and chains.
@kenzie45230 (3560)
• United States
11 Dec 08
No. When we're bailing out big businesses, we're rewarding failure. Small businesses don't get bailouts. They do what they need to do to stay in business. Sometimes that means no raises, especially for the people at the top. Sometimes it means a hiring freeze. It definitely means using wisdom in spending, in planning, in purchasing. The big companies don't have to do any of that. And the guys at the top continue to earn big salaries and big bonuses. That's insane. Bonuses should be rewards for success.
I think it's high time that we let big businesses fail if they're stupid enough to continue doing what doesn't work. Will it hurt some? Yes, of course.
But there are foreign car companies ready to come in and hire the workers from the Big 3 if something happens to them. They don't pay quite as well, though. But if the workers don't have to spend big bucks on union dues and still get $22 an hour (as opposed to $30 per hour with the Big 3 and unions), can they survive? I think they could learn to do so.
In the south, where unions are not the norm, they're trying to get some car companies to set up there.
2 people like this
@shamsta19 (3224)
• United States
11 Dec 08
Then what percentage of jobs does the auto industry provide? I am not saying there won't be people affected by the auto industries failure but there are so many other aspects of life that need to be considered. When it comes down to it what is more important, a new car or food on the table? The Benz or your homes? Who said the auto industry deserves a bailout? I can't use the language I really want to use here cause this whole situation is @$!*$@# ridiculous. The fact that it is even being considered is a crime in itself!!!
1 person likes this
@kenzie45230 (3560)
• United States
11 Dec 08
BTW, I read just yesterday that car company employees - the average guys - get over $70 per hour when you factor in their benefits. How many others are making that kind of money for factory jobs?
2 people like this
@mamaafrica9 (108)
• United States
12 Dec 08
In the past when the automobile company decided to cut job to put in machinery, they then turn there back on the American people and the economy for more profits. Many other big industry even left this country to employee other country for cheap labor but still expected our business and received it. With less labor cost there prices still went up and now the cost of a car is to much for the average working class citizens. We can barely afford to put gas in the cars we do have, they don't expect us to buy new ones. There are many American who never had a new car and probably never will, if the prices continue to rise. They are creating two class of people, the rich and the poor, there is no middle class. Once they get this money, then what? How long will this money last them? I think we need to learn survival skills and prepare for a long hard suffering.
2 people like this
@shamsta19 (3224)
• United States
12 Dec 08
It's about to get like that. Get ready.
1 person likes this
@j47lee (740)
• Canada
11 Dec 08
Bailing out the auto industry.... i think the employees there make ridiculous salaries... especially with the unions... it is difficult to change any thing... they get paid more than Toyota or honda employees... the only way the gvt should bail these companies is wen these unions agree to lower their wages... it is better to have a job, than have none at all to survive on.. dont u think so guys?
My sis in law work in an auto parts company.. and wen the big auto plants closed down... one of them came to come in my sis in law's company... and her job is just to pass the parts and put it in the machine... and she used to make $18.00 an hour just for that ... and wen she came here.. she made like $10.00 an hr for the same job... see the difference...
2 people like this
@shamsta19 (3224)
• United States
11 Dec 08
Everyone is going to have to dig deep and sacrifice for the greater good here. It is these industries lack of desire to do this that has made this an issue at all. Lower wages, cheaper cars. Vehicles that aren't reliant on fossil fuels. No one is willing to take the first step here. Now would be a great time to introduce cars that run on water (which is already being done) or some other form of cheaper fuel. If we weren't so dependent on foreign oil, I'd bet that would help the economy tremendously.
1 person likes this
@KrauseHome (36448)
• United States
14 Dec 08
I totally agree with your comments you made here. The only ones who will be effected when they do bail out these Companies are the people on top. It will still not mean more people will be able to buy Cars, or people will not end up loosing homes, jobs, etc. Why don't they bail out the Economy in offering ways to refinance homes, etc. and bail out people with offers of jobs, and Financial help for them in other ways like Medical care, etc. instead of worrying about saving the Big businesses to where they continue to offer loans for things with the ideal people will be always able to pay these back when in reality if they concentrated really more on the consumer themselves they would see why this Economy is really in the shape it is in anyways. Just my thoughts.
1 person likes this
