Any news about the Big 3 is always the top story up here in Michigan. Columnist Thomas Friedman came out with a very interesting column yesterday about the proposed bailout for General Motors. I tend to enjoy Friedman's columns. Sometimes I agree with him, sometimes I don't...but they're always well written and thought provoking. So when I saw his column yesterday HOW TO FIX A FLAT I obviously paid close attention.
His take on all of this is right on...and I completely agree with his take 100%. In no way should we give $25 million dollars to a failing company with no imagination, a poor business strategy, subpar products, little innovation, and unbelievably high labor costs. If GM gets its way and receives the proposed bailout from the government, Ford and Chrysler will soon be knocking on the door. And what's next after the auto industry? Are we going to see American Airlines and Northwest/Delta speaking before congress as well?
For as long as Jenny and I have been living up here (2000-2003, and 2006 to present) we have always followed the business news coming out of Detroit, and it's never been good. Once in a while I'll pick up a Detroit Free Press Sunday paper, and the business section is about the size of a leaflet. A whopping 4 pages! All we've ever heard about are record quarterly losses and high amounts of job cuts from the Big 3. I can't recall ever hearing anything positive coming out of Detroit as far as job postings, new technology, new labor plans with the unions, etc. These three companies do nothing but burn through cash. In no way should we give them more to burn.
Yes, I do know the sad truth of it all. If GM doesn't get its bailout Michigan will further whither away and lead the nation in unemployment. For that I blame Michigan legislators more than the Big 3. Year after year, election after election legislators and senators in Michigan (from both parties mind you) have used the failing auto industry for their own agendas. Yet all of them have had blinders on regarding the real issue...that Michigan is too dependent on the Big 3. The folks in Lansing have made their bed, so lie in it.
I'm sure Michael Moore wouldn't want to be my friend. Oh well.
In addition to the proposed bailout plan for GM, the other hot rumor around these parts is a proposed merger between GM and Chrysler. The talks seem to be on and off again constantly, so no one knows for sure what's going to happen exactly. But one analyst said that if the two do indeed merge that over 50,000 jobs would be lost. That's a staggering number.
2009 will be a very interesting year for Michigan.
1 comment:
I agree with you and Friedman. I would take it further and say that these bailouts amount to a theft of the wealth of hardworking people (taxpayers) and future generations. Certain companies go broke, so they go to the govt. for a handout. The government is broke so they go to the only place that's left to steal from, the American people. It's pretty discouraging.
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