Bailing out Detroit carmakers

September 10, 2008
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Executives of General Motors, Ford and Chrysler are optimistic about their chances of getting inexpensive federal loans to help tide them through the credit crunch and sales downturn.

The discussions, which have come to light in recent weeks, have the execs smiling like possums not only because the government set a precedent by bailing out Wall Street, but also because itâ??s an election year.

Theyâ??d like to see Congress OK the loans this fall. And it would be difficult for John McCain and Barack Obama to say â??Noâ?? to the swing state of Michigan as well as the auto-dependent states of Ohio and Indiana, which also are in play this November.

Should the government offer the loans?

  • absolutley!!! no questions asked. too many jobs in Indiana rely on the auto industry and Michigans economy is in the John because of these three companies.
  • Here we have another example of companies that have done poorly in the free market and now wish the government to bail them out. To bail out these companies is akin to giving these CEO's a free pass on all the poor decisions they made. It will provide them no incentive to improve themselves and they will continue to fall further and further behind the Japanese auto-makers. Why should consumers who have already rejected the products produced by the American auto-makers be forced to support financially the inefficient way that these companies do business?

    There are many jobs in Indiana that rely on the auto industry but more and more are coming from the likes of Honda, Subaru, and Toyota. Michigan has not done as good a job of diversifying its economy for the 21st century. If it continues to rely on companies that have had steep financial losses for over a decade now then perhaps they would be wise to encourage those auto manufacturers that are doing well to build plants in their state.
  • It doesn't really matter what anyone thinks. The pols will push this through no matter whom is at the helm.

    Shoot, the guys in DC that are supposed to serve us have failed miserably in doing their jobs. This would be one more example. Add your own conntributions to this list:

    1. Failure to adequately secure our borders
    2. Failure to control spending (remember it is Congress that spends)
    3. Failure to work toward energy independence (they've done just the opposite)
    4. Failure to provide any decent alternatives to the broken public education system (remember no child left behind which promotes testing over learning and quantity over quality
    5. Failure to focus on the issues important to taxpayers (remember Dan Burton and the silly investigation of drug use in Baseball instead of providing a sane energy policy)
    6. Failure to provide a simple, workable tax system (say hello to Fair Tax and goodbye IRS)

    So, what do we do - try to promote 1 of 3 Senators to the Presidency - why, they have ALL failed to do their jobs and yet they want to be promoted? No matter whom wins, we get what we deserve.
  • I don't believe the government should bail them out. Maybe this will make more U.S. companies examine their practices to be more fiscally responsible. When the big 3 were manufacturing bigger trucks and SUV's, they should have been doing a better job of planning for the future. These companies and most organizations affiliated with them have brought it on themselves. Each company is just like a spoiled child that will continue to make poor decisions until someone forces him to take responsibility.

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  1. I am not by any means judging whether this is a good or bad project. It's pretty simple, the developers are not showing a hardship or need for this economic incentive. It is a vacant field, the easiest for development, and the developer already has the money to invest $26 million for construction. If they can afford that, they can afford to pay property taxes just like the rest of the residents do. As well, an average of $15/hour is an absolute joke in terms of economic development. Get in high paying jobs and maybe there's a different story. But that's the problem with this ask, it is speculative and users are just not known.

  2. Shouldn't this be a museum

  3. I don't have a problem with higher taxes, since it is obvious that our city is not adequately funded. And Ballard doesn't want to admit it, but he has increased taxes indirectly by 1) selling assets and spending the money, 2) letting now private entities increase user fees which were previously capped, 3) by spending reserves, and 4) by heavy dependence on TIFs. At the end, these are all indirect tax increases since someone will eventually have to pay for them. It's mathematics. You put property tax caps ("tax cut"), but you don't cut expenditures (justifiably so), so you increase taxes indirectly.

  4. Marijuana is the safest natural drug grown. Addiction is never physical. Marijuana health benefits are far more reaching then synthesized drugs. Abbott, Lilly, and the thousands of others create poisons and label them as medication. There is no current manufactured drug on the market that does not pose immediate and long term threat to the human anatomy. Certainly the potency of marijuana has increased by hybrids and growing techniques. However, Alcohol has been proven to destroy more families, relationships, cause more deaths and injuries in addition to the damage done to the body. Many confrontations such as domestic violence and other crimes can be attributed to alcohol. The criminal activities and injustices that surround marijuana exists because it is illegal in much of the world. If legalized throughout the world you would see a dramatic decrease in such activities and a savings to many countries for legal prosecutions, incarceration etc in regards to marijuana. It indeed can create wealth for the government by collecting taxes, creating jobs, etc.... I personally do not partake. I do hope it is legalized throughout the world.

  5. Build the resevoir. If built this will provide jobs and a reason to visit Anderson. The city needs to do something to differentiate itself from other cities in the area. Kudos to people with vision that are backing this project.