California Attorney General Jerry Brown is reported to have stated that the Federal government may need to bail out the American auto industry from its financial problems. His reasoning is based on the auto makers' "refusal" to manufacture more fuel efficient cars. He places blame upon the government and the industry and, of course, he sees basis for much expensive litigation. Then he points his finger directly at us and makes it clear that it is his opinion that the taxpayers must foot the bill for all of it.
Yes, the American auto industry is playing out a saga that reads like "going to hell in a hand basket." I, myself, have no desire to see the government step in. Let's let the big boys figure it out for themselves, even though it's going to hurt a bit. If Attorney General Brown is so disappointed with how the government has addressed auto makers thus far, why in the blue blazes would he send the buggers back there with fists full of dollars? Honestly, Jerry, don't they call that sending good money after bad? The difference here is that Jerry Brown wants the squandering to go outside the boundaries of company profits and into the public coffers. How wonderfully socialist of him.
I'm just as disappointed with the current status of the American auto industry as anyone else. I feel very bad about all the job losses the industry has suffered and I'm disgusted with the performance of the unions. I have no magic solutions to offer and I fear that things will get much worse before they begin to get better. One thing I can tell you for sure: If Attorney General Jerry Brown thinks that the salvation of the American auto industry rests in the diversion of tax dollars into its hands, then all I can stress is that he himself needs to be immediately removed from the government payroll.
But that's just my opinion.











Reader Comments (Page 1 of 1)
5-19-2007 @ 9:18PM
Pete Floege said...
The solution to american automakers problem is simple do like the europeans do,put serious
import taxes on all imported cars and parts,since American cars are already less expensive then Jap cars,simple economics would do the rest.Example Ford Focus zx4 basic
with air and side air bags.$12,450 plus fees;
Toyota coronary(or is it corrola) $16,500 plus
fees.The Focus is roomier,runs stronger and gives 37mpg.What is the question?
5-19-2007 @ 9:18PM
vince said...
I don't get it, my business right now is very slow and I'm struggling to stay above water, is the U.S. Government going to step in and float me a couple Mil to stay in business? Or will I have to go out and get a regular job just like every other small business owner that goes bellie up during a tough economy. Who's getting the payoff's, the CEO's?
5-19-2007 @ 9:19PM
MATTHEW said...
I BELIVE THE CEO'S NEED TO TAKE A PRETTY HEAVY PAY CUT! ITS THERE JOB TO KEEP THE COMPANY UP AND RUNNING. I WOULD RATHER TAKE A PAY CUT THAN LOOSE MY JOB. BUT I ALSO THINK THE GOVERNMENT NEEDS TO SET AN EXAMPLE AND ALSO TAKE A PRETTY HEAVY PAY CUT. THAN MAYBE EVERYONE ELSE WILL FOLLOW. THINK ABOUT IT EVERYTHING GO'S UP BECAUSE PEOPLE WANT MORE MONEY.
5-19-2007 @ 9:21PM
Rick Toll said...
The politicians are to blame for the auto companies problems. They let the Japanesse ship all the cars they wanted to into this country. Could we send cars to Japan? HECK NO !! Then our state and federal governments gave the Japs millions and millions of our tax dollars to build their plants in our country and create lower paying jobs with less benefits than the U.S. auto companies provided. The Japs have some real good public relations people to brainwash the American public that their cars are a lot better than U.S. cars. I have had people tell me that Japanesse cars, built side by side with American cars built on the same assembly line by the same people using th same material, are better than the U.S. Cars. Stupid !!
5-19-2007 @ 9:21PM
james gilliam said...
why doesn't the gov. step up and make the imports pay the same tariff tax as the people in the usa have to pay when they export, have your congressman explain that one to you. there is no such thing as fair trade going on right now, i wonder why just think about it
jim gilliam
5-19-2007 @ 9:21PM
Bob Jeske said...
What we really need is a National health care plan for every one in the U.S.A like Canada. This would take the burden off all employers That have health care for threr emplyees. Making a fair playing feild for the american worker.
5-19-2007 @ 9:24PM
james Oswald said...
Rick you are almost correct .it costs the american mfg. $1500 more to build a car than the japs but they build a better car in spite of it .now we see a loss instead of a profit . answer : import tax on Jap cars to equal the playing field and take the benifit burden off , and then the american companys will win every time . look to your elected officials who don't take appropriate action to protect the american workers and retirees . the government helped Harley Davidson and now they are the premier motorcycle builder world wide , kicking the japs hard , something like that should happen in the auto business . Jim
5-19-2007 @ 9:25PM
Ronnin said...
Every other modernized nations on the face of the Earth have some sort of governmental help for their large manufacturing industries and very protectionist barriers EXEPT THE US. The political whores in Washington who are so much in favor of "Free Trade" are bought and paid for by foreign lobbyists at the expense of American workers. Instead of beeing the busybody of the world and getting involved in a war based on a pack of lies why does not this government help its own people. Money to rebuilt manufacturing and infrastructure and improve education would be much better spent than wasting billions of dollars and young lives in their prime on a bunch of barbaric religious zealots that do not want us there anyways and for a bunch of oil corporate parasites. To the writer of the first article all I have to say is you know what opinions are like and everyone has one.
5-21-2007 @ 12:01AM
brettze@aol.com said...
I had been writing this same thing again and again and everyone is running around making bullshit ideas.
Now here, look , do you know that GM mangement and UAW had been in hoodwinks for decades while acting as if they are shaking eachtoher's necks. Since 1989 when $5 dividends was last paid by GM, shareholders had been shortchanged a grand total of $30 billin or more if dividends had been increased along the way. UAW workers must have figured out that they dont really need shareholders so screw them and tell the management to cut dividends in "hard times" and pour the cut dividends into UAW pension coffers. It has grown to over $100 billin now. Same for Ford Motor . Chrysler has smaller but really more than reported $18 billion. You see, GM, Ford and Chrysler is awash in profits through good and bad times. Now, managements are seen as being paid similiar to movie stars, pro stars, rock musicians, and book authors, so to act as a lighting rod for shareholder's grievances . The real boondoogle actually went to the union workers or high priced knowledge workers or whatever. It is just a smoke and mirror crap. Why arent we thinking that those movie stars and all those guys make too much? We left them alone and bombast at CEOs who posses MBAs and years of experience. Now you took Jerry Brown, He never owns a share, I reckon. He is not thinking about shareholdrs. He is thinking about a dog and pony show. He want his own kind of cars which is fine with me as long as I get a decent dividend and a healthy stock appreciation. GM and Ford is at prehistoric and predepression levels if you get what I mean. GM and Ford just dont exist literally. We are not paying attention to them any longer. They are old industrials but they are still profitable like hell!!! The trouble is that UAW are just piggying it out and we sharheolders are being distracted by CEO pays and all that crap stories. If you ask me whether GM and Ford should build too many gas guzzlers, I would side with Jerry Brown and this is about all. Jerry Brown's solution is just DOA because he distances himself from shareholders. Any pol that want to mess around with public owned companies ought to look at sharehlders first , above of all!!! Obey the sharehlders!!!!!!!!!
5-22-2007 @ 12:59PM
A D said...
Subsidize the American auto industry?
Why not get to the truth, ask why Americans are subsidizing the Japanese auto industry.
Are there insumountable barriers to trade with Japan?
YES!
Do they screw with currency values?
YES!
You want an answer to the problems with the car business?
The Japanes are pirates. They continually lie and have no qualms about buying off political power.
Want the truth? The originator of this thread is likely a Japanese stooge.