tag:blogger.com,1999:blog-5465015914589377788.post2160878018219380440..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Moving Closer to a Planned Economy, ComradeMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5465015914589377788.post-48579696660889368402009-01-11T19:46:00.000-05:002009-01-11T19:46:00.000-05:00Yes, you've put forth some crucial points, and the...Yes, you've put forth some crucial points, and the auto companies have been humbled, and they definitely needed that. GM's market share has really contracted from their 50% many years ago. Undoubtedly their success caused hubris.<BR/><BR/>I drive an old Ford Taurus, and I am unimpressed with a design flaw in the head gasket that caused huge repair expenses. The radiator leaks like crazy in cold weather. I'll stop now, since this isn't an automotive blog.genehttps://www.blogger.com/profile/05608927986297939720noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-54872265883836255872009-01-11T11:45:00.000-05:002009-01-11T11:45:00.000-05:00Gene: I'm not actually against a bailout of the a...Gene: I'm not actually against a bailout of the auto industry. To let all three companies fail at once would be so devastating that it can't be allowed to happen. However, to allow them to continue on their present course is insanity. They have been slowly failing for years. If there aren't big changes to try to better compete with Asian car companies, there will be no "other side of the bridge." I agree that if they fail, it must be allowed to happen gradually. But, I would prefer to try to save the American car companies by having them make a realistic attempt to compete by making better cars rather than just advertising more.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-90886586245384142212009-01-10T18:04:00.000-05:002009-01-10T18:04:00.000-05:00Although I don't disagree with your points, I marg...Although I don't disagree with your points, I marginally support a bailout for the automobile industry. I think the shock waves of a failure of one of the auto companies would hit the economy very hard, and in unexpected ways.<BR/><BR/>The auto companies have actually trimmed a LOT of jobs in the last several years. I don't think they make good product, but they do employ a lot of people. People are what keeps the economy going. Manufacturing gives good jobs, and there are a lot of jobs that directly rely on the auto industry.<BR/><BR/>Also, perhaps the credit crisis has been a major factor in auto company's latest woes, and once credit starts flowing again, we will have a recovery in their sector such that they can break even financially. Consolidation and shrinking would probably help things too, and hopefully we do see this industry gradually shrink.<BR/><BR/>I heard one commentator say "well, by calling this a bridge loan, it does imply there's something on the other side of the bridge". I sure hope so.<BR/><BR/>Long term, if they can't stand on their own feet, they should fail. I'm hopeful they will just shrink enough that they break even. That will mean a lot of gradual job cuts and plant closures.genehttps://www.blogger.com/profile/05608927986297939720noreply@blogger.com