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jcf747 | Let the auto makers go under.? |
Why not spend the 25b on supporting the auto workers and the families and let the big three go down. what would be the end results of that? |
 |
 
Tom Z
 |
Because the economic effect will be much greater than $25 billion -
• Should all of the Detroit Three's U.S. operations cease in 2009, the first-year total employment impact would be a loss of nearly 3 million jobs in the U.S. economy—including 239,341 direct job losses at the three auto companies; 973,969 secondary jobs at auto supply companies; and more than 1.7 million jobs at other employers from the reduced spending by those jobless workers. The employment picture would recover somewhat in 2010 and 2011, due to increased U.S. production by foreign-based automakers and dislocated workers finding new jobs.
• Even if just one or more of the auto companies goes down, the first-year losses would still be nearly 2.5 million jobs in the U.S. in the first year before coming back somewhat in the second and third years. That's because the domino effect of one major automaker going under would push several financially fragile auto suppliers into insolvency, which would interrupt production at the remaining car companies.
• In economic terms, a 50% cut in the Detroit Three's U.S. operations would reduce personal income by more than $125.1 billion in the first year, and $275.7 billion over three years.
Center for Automotive Research (CAR) Chairman David Cole, one of the authors of the study, says legislators and members of the public who doubt the U.S. auto industry is worth saving "should realize the costs of it failing are far greater than the $25 billion in loans the industry is seeking." |
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Answer Me!!!
 |
The money will only go so far and it wont last. I am sure that most of these auto workers only know what they've done for the past 20+ yrs.
They have also made themselves into higher standard people making $60/hr and will not be able to afford to continue living as such.
The big 3 dug themselves into this hole, maybe they should go under, survival of the fittest.
Or you can save them thus saving jobs up and down the food chain, but something has to be done about the UAW and the ridiculous wages these people make working on an assembly line. |
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Barnaby J
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Why give the workers money? They have been making ridiculous sums of money for the work that they have been doing and their labor cost is one of the main reasons the Big 3 are in this mess. Let them cry to their Union representatives.
They can go and file for unemployment like everyone else who loses a job. As for just giving these companies 25B just to keep them going and to see what happens, ask yourself this "Would a bank continue to give money to a business that was failing, showed no signs of improvement, nor gave a sound business plan for getting out of this mess?" Heck no they wouldn't, and we shouldn't either.
Eventually we are going to have to pay for all this nonsense. The more money that we use to bailout these companies will come back to haunt us further down the line. The dollar will get pummeled again and inflation will return. |
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Vantage Point
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A very wise suggestion. I agree. I was laid off. My employer was not bailed out. Many hundreds of medium and small businesses went thru hard times and laid off millions of workers receiving meager salaries. These laid off workers collects unemployment for a fixed period.
The auto worker is no exemption. The auto worker has had their stomach filled up to now. The auto industry should not be bailed out because the business model they propose is a failed concept.
I want the govt to continue supporting unemployment and medicare rather than waste money trying to float a failed business concept.
Tom is quoting a bunch of numbers that I don't agree with. Right now there's around 9 million unemployed nationwide.
This number of unemployed in all parts of the country will still rise. We need use the money wisely, not on a bankrupt idea. Not on only on one sector of the industry. |
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Brittany W
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I agree with Tom. |
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REDWOLF3
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Thank you Tom Z!!! |
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