Why the Bailout Didn't Work....

So why didn’t the bailout work? They all told us it would free up credit and that everything would get back on track. Why didn’t that happen? I know I know! It didn’t work because these greedy CEOs paid themselves billions of dollars on golden parachutes and company trips! The rich used the $700 billion to make themselves richer instead of what they were supposed to use it for. I was actually for the bailout, and I know that if they had used the money correctly, it would have worked. However, the government was naïve enough to believe that these people would actually do what they were supposed to.

My argument is that we should not have trusted these people with all of this money. Look at the mess they got themselves into to begin with and tell me what made us think they would be more responsible than they were at the start. If the IRS can send a personal auditor to make my life a living hell for as long as it takes around tax time, why could we not have the same type of people going to these companies to make sure they were spending the money for the intended purpose? Why was there not some sort of a clause in this plan that threatened jail time for misuse of the bailout money? I’m baffled at the ignorance of our congress on both sides of the aisle, Republican and Democrat!

So the question of the day is whether or not we should help out the “Big 3”. I absolutely HATE having to bail out irresponsible people. In my mind it reeks of socialism instead of capitalism, it is disgusting and I despise it. However, 1 in 13 people in this nation work in some way, shape or form for the auto industry. If we don’t bail them out, 3 million people will lose their jobs. 3 million! There is no doubt in my mind that if we don’t do something about it, we will be in a depression similar to the only one that this country has ever seen.

As many of you know, I work for Honda. I grew up a Ford guy, and to a large degree, I still am. I have gained a lot of respect for Honda since I have been working there, not because of the cars themselves, but because of the way that they are marketed. Allow me to explain. One of the biggest problems facing Ford, GM, and Chrysler today is the fact that they produced millions of cars that they cannot sell. Honda does just the opposite. Honda finds out how many they can sell, and that’s how many they make. The Big 3, on the other hand, didn’t do their market research, and just kept making tons of automobiles that they couldn’t sell. Honda also produces vehicles that get better fuel mileage than Ford, GM, and Chrysler. I worked at a Chrysler, Jeep, and Dodge store for a while, and NONE of their cars averaged more than 27 mpg on the highway. Honda and Toyota have plenty of cars that average 35+ mpg. I’m not sitting here trying to sell you a Honda vehicle; I’m simply telling you why they’re doing better than the big 3. If Ford, GM, and Chrysler had marketed their vehicles properly, and made more fuel efficient automobiles, they wouldn’t be in the mess that they’re in.

I have heard people suggest solutions for the problem and have found one that I agree with. Instead of giving the bail out money to the companies themselves, give it back to the consumers in the form of a tax-break. Tell consumers that if they buy a Ford, GM, or Chrysler product, that they will receive a tax credit at the end of the year. That way, people will start to spend money again, especially in the places that are really hurting. That also prevents the government from making the same mistake twice, and not giving money to people who were already irresponsible with billions of dollars before.

I don’t feel sorry for the companies that made these bad decisions, and let’s face it, the big 3 made some very bad decisions. I do, however, feel bad for the 3 million people whose jobs are in jeopardy, and those that have already lost their jobs. However, if we don’t bail out these companies and they do go out of business, I’m sure that someone else or another company will buy up the plants, and build a company that could restart the economy. Sure it would take time, but maybe that new company would employ as many if not more people than the one that it would replace. Who knows? Many of you know about DHL in Wilmington Ohio, and that they will be putting thousands of people out of work. Maybe another company will replace it. Surely someone will see a future in an empty plant that nobody is using. I’m trying to look at the glass half full, but unfortunately it seems to look half empty. Sometimes though, you have to be a realist and look at the glass, plain and simply, as being twice as big as it needs to be.