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Thursday, November 20, 2008

Detroit Bailout

If you have been following the news this past week it looks live the Big three automakers in Detroit are looking for a government bailout.

Auto executives were up on Capitol Hill pleading their case on how they need this "urgent" intervention or else the world is going to end. It was amusing to see these executives squirm as Congress asked why this was allowed to happen.

Those who support a government bailout argue that without it would be disastrous for the U.S. economy.

Since when is it the responsibility of the Government to bail out Business.

The last time I checked this country is a capitalist society where business succeeds or fails based on how they operate.
This is what I believe Detroit needs to do to improve their bottom line:
1.) Senior Management pay cut & elimination of bonuses

2.) Start making cars that consumers want to buy - smaller cars, better gas mileage

3.) Voluntary, temporary pay cuts for production employees - not popular but needs to be done

4.) Bankruptcy - may be needed to renegotiate these insane contracts.

Make Detroit work this out on their own and not rely on Uncle Sam to make thing all better.

You probably figured out hat I am opposed to government bailouts.

Write your Congressmen & Senators that you oppose bailouts for Automakers, Banks, Airlines, etc.

I am Neil Bytes and I approve this message.

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