Good job for the groups who went today.
For this evening, I would like you to find information on the auto industry bailout plan. You can look at papers or online news source. Explain whether or not you think the government should bailout the auto industry and why. Also, discuss how this is not just an American problem but a global problem as well.
22 comments:
I found an online report that gave an interesting point. It explains how the government is giving $25 billion of taxpayers' money to help support the big 3 automotive companies. I believe this choice is completely irrational. It is completely normal for companies to fail. However, just because it's the three automotive companies we know so well, it's not okay for them to fail..? The article I read was written by the owner of a local newspaper. His company is falling through just like the automotive companies. He compared his company to the big 3, and how the government is almost doing favoritism for the automotive companies. He explained how ridiculous that it's "okay" for his company to fall through, but not the big 3. I completely agree with him.
I agree with what Dan had said. I think that the government is picking out the companies that they want to see years from now. Why would they treat the automotive companies, which employ a lot, different than any other business. Just imagine if they spent $25 billion on small businesses in general. No specific one, but just lots of different ones. That would employ a lot of people right there! Now, picture how that money that they had already spent helped to save jobs in America. It hasn't that much! They should treat all businesses equal to each other, no matter how big or small the business is!
I think that we should not bailout the industry. I think this because we will just end up paying for this bailout in our taxes. So we would have to pay more for them. Also they need to get out of this det themselves. This is global problem because these companies do business with other nations and if they companies fall it will affect those other nations. All the supplyer companies that supply the car companies with parts will go down and then more people will loose their jobs. Something needs to happen with this issue if it be good or bad something needs to be done.
the automotive companies should be bailed out by the goverment. But i think they should stop selling off there stuff to other countrys. we need to keep some of are stuff in the united states. We also need to stop spending all this money on the was that is not needed. Our country needs to help itself before it can help another. WHat do you think we should do?
i guess it could go eather way. just have to think about how we will all be effected in the long run.
For this evening, I would like you to find information on the auto industry bailout plan. You can look at papers or online news source. Explain whether or not you think the government should bailout the auto industry and why. Also, discuss how this is not just an American problem but a global problem as well.
I think that we shouldn't bail out the auto industry. If we do bail out the auto industry it is worse for us. We end up paying more money in our taxes. That is if they were to get bailed out. This a major global issue. Companies do business with the other nations, and it will wreck our relationship with other nations. I think it is a bad idea to bail out the auto industry. They need to figure out a way to get themselves out of theire hole.
I belive that the "Big 3" should get the money they need. Those companies are what made Michigan a mainstream name in the automotive business. If they dont get the money, I believe Michigan will be worse than it already is. We depend on those companies for thousands of jobs, it just seems stupid that people dont see through the money and take a look at how it would help our economy. Though I dont believe that they had reason to get to the point that their at, but if we dont realize how important they are to our economy not only Michigan will be effected but the whole country. The "Big 3" is not just important to us, but to other countries as well. Many of the parts that automotive companies use are made in other countries. Jobs wont only be lost here, but in the other countries as well. People all around the world depend on these companies to get from point A to B. Without them, I think that the U.S. and the world for that matter will be effected in a very negative way. I think that congress needs to think it through and notice that it will really plummit the exports that we send out, which accumulates to billions of dollars each year that stimulates our economy.
I think 100% the gov. should bail out the auto industry. The economy flows by how much money we spend. If no one is spending money then how the the economy run. But it all starts with cars. If the auto industry is doing bad then the economy is. But i want to talk about if we do bail uot the auto indusrty people HAVE to stop buying forgien cars. WE ARE NOT GAINING ANY MONEY FROM THIS. we are giving japan money. We have cars in japan but they are still making money off it because they get some of the profit. We are getting nothing. And untill people realize this it is just going to get worse. So like our economy now? Keep buying forgien...
After researching on the auto industry bailout plan, I agree that the "big three" should be given the money they need to refinance. The $25 billion plan to bail them out is totally worth it in my eyes because they really do need the help. the loans would probably amount to at least $5 billion for each of the Detroit 3, plus smaller amounts for suppliers. That would allow them to borrow money at interest rates as low as 4 percent a huge discount in comparison with the double digit rates they're paying now. Something intresting I found out is that the plan has been in the works for at least 18 months. I also learned that The current legislation requires only that the money be used to retool old assembly lines and develop advanced, fuel-efficient technology. The idea behind the loans and reasons why I think they should be bailed out is because it is to buy time while the Detroit 3 revamp their lineups, develop new hybrids and other fuel-sippers, and convert old SUV plants into factories turning out hot cars able to compete with those from Toyota and Honda. This is not just an American problem but a global problem as well because auto suppliers are fighting to sell their cars while so much bailing out is bringing down the other car companies from other countries.
rachel duelo :]
i heard to day on the radio at they haven't come up with a bailout plan for the auto industries. i think that the government should bail out the auto industries. If they don't bail them out the economy is going to turn to crap. once that happens the whole state will to. the economy is based on the auto industry. It's not just Michigan that will be effected. there are also many other states will be too. I do realize that if the government does bail out the auto industry there will be consequences. Any other companies will want bail outs if their falling under. It would still be a good idea for a bail out.
I believe personally that a bailout plan is both in good interest and bad interest. First of all 25 billion dollars of tax payers money is one heck of alot of money. Our country is already in severe dept and giving $25 billion plus in tax payers money seems like it could be a slight of a mistake. However when Kmart claimed bankruptcy when the government helped out it really helped them as a whole as a country. With GM and other companys clairing bankruptcy it really ruins the USA economy exspecially here in Michigan because we are mainly auto related. All in all I think that the bailout would help GM and the big three but they cant say they didnt see it coming because they have been losing money for many years by the billions. Personally i believe the main thing that is messing up GM and the big three is the union who doesnt fire a poor worker and therefor they are not getting quality work and they are lossing money on that particular worker. I think the very best thing for GM is to make cars which people want to drive and are fuel efficient and i also believe that the union should either be weakened with their power or just get rid of it period...it may hurt at first but i believe it would help. The reason the American problem turns into a global problem because frankly us Americans are the buyers of the world and if we arnt buying as much than China isnt producing as much and there for the whole economy of the world spirals downward...its really called the domino effect.
Scott Roteman
you know, i never really realized how intertwined we, as michiganians, are with the big three. prety much everyone i know is at least indirectly affected by this. for those that think the bailout plan is irrational, then why should the government bailout other companies, such as AIG, or washington mutual? i believe the auto industry is one of the last great american industries, sure, jobs are being moved over seas, but that is all in time. i dont think the people realize how much it really does take to run a company of this magnitude. just the bottom line operating costs. let alone, developing new, exciting, and innovative cars, and the re-tooling costs that the plants have to undertake to produce new cars. consider it what you may, i feel i am lucky to have a father who works with ford, gm, and chrysler, because it gives me a look that others dont see. if the big 3 fail, i feel not only will michigan go into depression, but also the american economy.
Cody Dykes
For this evening, I would like you to find information on the auto industry bailout plan. You can look at papers or online news source. Explain whether or not you think the government should bailout the auto industry and why. Also, discuss how this is not just an American problem but a global problem as well.
Ok well iv been hearing about a bailout plan for like two weeks now. I don't think it matters at this point, by the time we have a plan it will be too late. I'm also as of today not on the auto industry's side. They flew there $20,000 jets to Washington WTH. Maby they would have more money if they flew down for like 100 bucks. I just think that's wrong. Well if they do get it, life will be better for a little bit, but there will be NO lesson learned from this. Also i think is they get the money the government should control the company's spending. I think this because apparently the current CEO's don't know what the hell there doing. But in all this is a horrible situation and that it could have been avoided if people were a little bit smarter, and we wernt so dependent on things like the auto indusrty and natural fuel.
I am kind of on the flip side of this issue. I do beleave that the auto industry failin is a big problem. I also think that this problems for a short time will open up the forgien car market, before they too crash. While i do see how this issue is worldwide and would affect us all i do not think they should get the money. I think that would go againts american values of buisness, it was one of the risks every buisness had to face. They had the ability to create a company and if it succeded great, but if it failed, ohwell you tried. It is a big problem for a company that is so intertwined with the government to do this, but i think they should go into bankruptcy and try again. I also think the money should go into somthing that is less likley to go against these values.
If we do notgo through with this auto industry bailout plan, we are going to see Michigan at its very worst. "The Big Three" auto industries are what built Michigan, and are what provide for so many of our people and families in this state. Not only is this whole thing affecting so many familes in Michigan being laid off of jobs and not only our state as a whole, but also the rest of this country is going to be majorly affected too. Michigan is capital to the providing of cars for not only our state, not only our country, but for shipping cars all around this nation. We will be seeing a lot more foreign cars coming in, which al though may be a good thing because they make great cars, but will not be helping our economy's at all in the long run. If we do give the $25 billion to the auto industries to get them out of all their debt and back on their feet, they will be able to get stable again and really help Michigan's economy to prosper. Even though this is our tax money, in the end I think it will all be paying off when our states economy is not at its worst ever in history. We need to pass this auto industry bailout plan so that "The Big Three," can get back on it's feet, out of debt, and help Michigan start to build p it's economies.
yes, the government should bail them out. If GM goes bankrupt then many outher companies will also go bankrupt. Also many other people will loose jobs who arent even employed with GM. The cost of the government for all the losses in taxes and loss of jobs would cost more then what GM is asking for. If GM goes into bankrupty then many other businesses will go down. I dont understand why the bailing them out is such a problem. It would benefit our country a lot and wouldnt put so many people out of a job. It only creates more problems.
Well, firstly I should state that I have not driven in, owned, sat in or driven any sort of American POS for almost 8 years. I have been extremely biased against American cars and most American products since they started lacking in overall quality in comparison to the German cars that we own and lovingly maintain. Before we got our Volkswagens and the Bimmer, we had a Dodge Durango. It was nice for a while, until it's true colours came out. It seemed every time we got it fixed, it came back with more problems than it had before. Since then, I've lost all faith in most American products as they have become substandard, low-quality and completely unacceptable. A perfect example of this is the Audi 100C that we sold to my uncle. It was state-of-the-art from 1992 and came with several features that American cars have just been recently introduced to. It had a voice-recognition phone system built-in, heated washer nozzles, dual-diversity antennae and when driven with care could easily make around 45 mpg highway and 35 urban. Compare this to American cars who just last year got the phone system which doesn't include the built-in handset, heated seats, dual-diversity antennae and still can't go beyond 35 mpg highway. This, is in part the LARGEST failing of American car manufacturers, shitty quality for over-priced, underperforming cars that are way too big. Secondly, I do not subscribe to the notion that Americans must buy American cars. That is the biggest piece of baloney that I have ever heard. This country is supposed to be about consumerism, namely buying what one wants when one wants it. I'd be damned to buy an American car when I've had unmarred satisfaction with my Passat VR6 compared to the aforementioned Durango.
For American-product die-hard purists, I would like to henceforth point out that "American" cars aren't even "American". 90% of parts originate from China or Mexico, where labour is cheap and workers are happy to make the meagre wages that would set the UAW into an uproar. "American" cars aren't "made-in-America", it's more like "assembled-in-America". It's kinda like Taco Bell isn't really Mexican food, or Chinese restaurants serve nothing resembling the food in China except for the rice and soy sauce.
Now, with the "big 3" failing as they are, I fully think they deserve it for several reasons. First, they failed to switch to economically-viable smaller cars that are mileage-friendly and don't break down constantly. Secondly, the largest failure resides in the CEOs. Grandholm, who has recently returned to the States to lobby for the low-interest 25 billion dollar loan, says that the CEOs have been trying their best. I beg to differ. They have presided over the demise of their current companies, and in come cases like Mullaly, over other companies. They receive millions in guaranteed pay according to contract, even more millions in severance pays and bonuses. The Republicans for once got it right that the CEOs should be removed and payed according to performance before they get any of the 700 billion.
As I said before, I believe in Darwinism, economic and otherwise. The companies should be allowed to fail, file bankruptcy and be restructured. While it may result in the loss of thousands if not tens of thousands of jobs, those people should be offered re-hires when the companies are financially able to support a workforce again. That said, the companies shouldn't hire any more people than they truly need in the first place. Mullaly, Wagner and the other guy should be removed WITHOUT severance pay, and new contracts drawn up for the future CEOs which include pay based on performance, no bonuses, and no severance pay. Sucking almost 90 million in bonuses and 40 million in severance pay is NOT a good way to run a company.
To address their argument that no-one will buy a shitty car from a bankrupt company, I would like to point out that they are in this position because no-one is ALBE to buy a car in the first place. It's a lame excuse for getting 25 billion that will most likely only keep them afloat for another 3-4 months at best. For their "national security" argument, I would direct their CEOs to the meaning of "bullshit". The army can get their vehicles from other companies. Last I looked, Mercedes-Benz was THE largest manufacturer of military-vehicles world-wide. Opel, Land-Rover, GAZ and Sukuoi are others that dominate over the "all-important" American manufacturers. But then, the American military can't kill people with European equipment can they? No, that would be totally ethically and morally unjust.
Do I believe this is an American problem? Yes, greed is a very big American problem. Secondly, the fact that the nation isn't run by the people, but by big corporate CEOs, and lobbyist-funded criminals is one. If this deal in Congress goes forth, I think it will be a testament to the world showing how "democratic" the country is. The big corporations have the power, bribing Senators and pushing government this way or that. Ford, Chrysler and GM's stranglehold on the American market is the real American problem. The state should have diversified it's economy beyond domestic manufacturers. Volkswagen, Toyota, Honda, BMW and other high-quality foreign manufacturers should have been allowed a firmer foothold, so when the domestics failed, they economy wouldn't be totally kaputz.
Now, is their failure a world problem? Except in China, where American products are worshipped, no. Volkswagen, now Porche AG is currently the largest auto manufacturer, even before Toyota. Like I said, I'm a proud owner of a Volkswagen, and while it may be a shameless plug, I love it, I take care of it, and I wouldn't want to drive anything else.
I do think that this is my longest, most heavily-winded rant, and I'm proud of that. I hate what the Big-3 represent, I abhor the fact that we find saving companies that need to be restructured more important than finding a cure for diabetes or furthering science, math or literature education and I hate the constant flag-waving that surrounds the issue. Real Americans realize that the Big-3 need to fail, should fail, and the economy will be better-off in the long run for it.
BTW, I you people can't start spelling right then I'm really going to have a coronary. It's not that hard to keep your grammar accurate and add a "g" to any word you intend to end in "ing". My mom wanted me to point this out and after looking at her point, it really is beginning to irk me as well. If you're too lazy to spell correctly, then at least use a spelling-checker. You guys don't need to sound like freakin' hillbillies. It pisses me off, I hate misspelling any sort of word, and that's the last of my hundred-million dollars worth of cents.
Damn that felt good. I applaud your choice in a topical subject which is one that I can have a lengthy rant on, anger my classmates, point out inconsistencies with this country and be a total dick-head. It's quite refreshing and I enjoyed every bit. Thanks Mr. Kay.
I decided to research a little about it online. I ended up finding out that certain automotive companies are asking for money to help keep them open. It is an estimated $25 billion dollars needed. I read that the Congressional leadership actually rejected the passing of this bill. I have to say i agree. Just because three busniess are going under doesn't mean that we have to save them. Many other companies have failed with no hope from the government. I think that these auto companies shouldn't have any special rights. The three auto companies were issued to come up with a certain plan to show how they were going to be spending thier money to help their companies. Then the congress are going to return for a decision. First of all, the money that they need to raise will probably be coming from are taxes. This is an american problem because it seems like are economy is becoming more worse then ever. This is going to impact many lives. Many of those workers will end up in return loosing their jobs. This is a pretty tough dcision but i think that they should not be granted the auto industry bailout plan.
i think we should not bailout the induetry. Why should we they have already gotten 25 billion dollars and it didnt even help. How much more money do they need. The goverment should not bail them out. They dont do that for other business that are in troble. And even if they bailed them out they would have the same problem in a couple years down the road because people are not buying cars. And because of our econmoy is so bad right now. So they shouldnt be granted the bailout companies come and go.
I think I read the same article as Dan had read, or if not then one very similar to his. When I first heart of this bailout plan, I was pretty enthused; I thought it a great idea to help our automotive industries get back on track. But, upon reading this article my opinion had swayed. I think that the is flawed; companies fail often, and I feel that it's up to the company which is failing to get themselves back on their feet. It shouldn't be up to the government. Individual people who receive welfare and such also seek help from the government to get back on their feet, however this is different than an entire company seeking assistance. Why should a lesser company be able to fail, but when our automotive industries fail they get a bailout from the government? I hardly think that's fair. This problem is a global one in that our automotive industries produce many of their cars overseas. This, in my opinion, is stupid. We should keep our industries domestic in order to keep them FROM failing.
I think I found the same report as Dan. I don't think its right to give 25 billion dollars of tax payers money to the auto industries. It is suppose to stimulate the economy. I don't think thye should be given the bailout because the government is pretty much saying its okay to fail. I think that the governemnt is looking for any way to boost the economy and this happens to be one of the ways. I think it is a global problem to because the 3 auto industries are a big part in the world. Its apart of our economy and if our economy is bad usually the foreign economy is bad also. This issue doesn't really affect me now but in the long run it probally will.
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