I know our nation’s economy is not as important as the war on Christmas, the new garbage pickup system, or the O.J. Simpson sentencing, but I am amazed that leadership is lacking and no one is noticing.
This morning I heard Rush Limbaugh tell his listeners that they have been laid off recently that because employers are making adjustments anticipating the Obama Administration and the democrats driving us into a financial ruin due to their policies. That’s in line with what George W. Bush told ABC’s Charlie Gibson, when he blamed the policies of decades past for the current financial crisis. Take no blame cut wages, benefits, and taxes seem to be their only answer.
After watching the big three automakers congressional hearings, one thing is certain, their math has been lacking. Two weeks ago they needed $25 billion, this week its $34 billion, our GOA expert tells as it’s more like $120 billion with no guarantees due to the following reasons.
1. Consumers are not buying automobiles foreign or domestic.
2. Banks are reluctant to lend 110 million Americans; they deemed unworthy for credit.
3. American automakers low MPG automobiles are more expensive than their competitors.
4. Consumers are leery of buying a product from a company that might go into bankruptcy.
Jack Welch said the big three should go into bankruptcy, so they can cut their ties with the unions and their current contracts; on the other hand Michael Moore said we could merge two of the companies (GM and Ford) let them continue making vehicles but with less models and plug in hybrids at the top of their list. He suggests that Chrysler motors could go back to making military equipment. Perhaps we can install an overseer like former comptroller General David M Walker as the transportations czar.
We should know by now that trickledown economics or the form of American capitalism that is based on credit consumption ,rather than production and creativity; will not work.
Let's start anew with a big stimulus package aimed at putting people back to work and not handing out rebate checks because people will just go out to Wal-Mart and buy flat screen TVs from China. The wind turbines have 8,000 machine parts to assemble, construction workers can begin installing solar panels, and weatherizing buildings..
Unemployment is at 6.7%, so 1.3 million more from the auto industry will mean less tax revenues, so give that some thought when you think that letting every major business fail is the only answer.
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