Do you think the government should help the financially floundering auto sector ?
I wonder why big business did not better manage their resources and permitted them self to get into this situation,Shouldn't someone in management have been monitoring the market and economy ? It seems to me that employees of the auto sector have also contributed to the situation by asking for and getting wages and benefits that surpass the average income. you would think it would be apparent to management and /or the union members that steadily increasing wages, benefits ,pensions and buy outs could not be sustained forever.I think a lot of people will suffer if the auto manufacturing jobs disappear but shouldn't someone have seen that that day could come?
- 1 decade agoBest Answer
It is unfortunate that the auto sector has found itself in this situation. However if you look at the rest of the country and the economic status, there are many out there that their business is floundering, the mortgage companies, financial institutions, and the even more unfortunate independent business people. The end result for the independent or lower income jobs, they just either lose their jobs, declare themselves bankrupt, lose their homes and self esteem. The auto sector must think that the government has a money tree. The constant early retirement, buy out packages etc, that has sucked up the revenue. They have been robbing peter to pay paul for too long and now they are in trouble. More apt to have to down-size their lifestyles to live more like the average joe. I am not making light of the auto sector, but something has to give. Perhaps we would have more money to help our own people if the government didn't spend so much money unwisely as well. We have homeless people out in the cold right now...........do the auto sector have a bail out for them too.
this is just my own opinion. The auto sector made their own bed, now they are going to have to lie in it a bit
- Anonymous1 decade ago
I think that it would be a terrible tragedy if the American auto industry were to fall. Jobs would be lost, our economy would get increasingly worse and above all a piece of the US would be destroyed. However, the auto industry, mostly GM, has been in a bad situation for years now. It costs them much more to create cars that are made with virtually the same parts as other companies and the labor is not as costly as they make it seem. They did not foresee the change in direction of the industry because of their inability to see long term. As a result they continued to pump out SUV's and non-fuel efficient vehicles. This led to a HUGE drop in their sales starting over a year ago and it has been a down hill slide from then on. I believe that the last few months have been partially because of the market crash but a majority of the problem lies with the Management.
By just handing over billions to a company with a history of failed systems and poor management you are setting a president for companies to operate with no risk. Company's can then focus on the short to gains and not worry about long term losses because the Government with "bail them out." It took them how long to come out with a hybrid car?
On another note, as far as their taking benefits that surpass the average income, that is relative and much of it has to do with taxes. A simple way to explain it is, corporations have a 30% income tax. So at the end of the year if the corporation has any money left you can allocate some of it to benefits/bonuses so that instead of getting taxed 30% on millions you get taxed 30% on thousands. Still at this point they should be allocating ALL of that in budgeting toward restructuring their business.
And thats about all I can think of to say about that : )
- 1 decade ago
NO! NO! NO! Enough with the bailouts. The market will eventually repair itself if the government will just BUTT OUT. If they give a hand-out to the Auto Industry, someone will be waiting in line behind them needing one next. It's not going to stop as long as this stupid government is in their stupid "LA LA LAND". We the people are broke. We have nothing left to give the government to give anybody else.
- buzLv 71 decade ago
I think government could help the automotive sector and also help Americans simply by giving a tax credit for fuel-efficient cars made in America. Ford's got a fuel-efficient car that it already sells in Europe, but claims that the labor costs are too high to sell it in the U.S. Maybe if there was an incentive for them to build it here...
- How do you think about the answers? You can sign in to vote the answer.
- 1 decade ago
They could have managed their employee incomes better and top management makes thousands of dollars in excess of what regular people make, it is rediculous for people like that to get a handout.
- 1 decade ago
No, they shouldn't help them.
If they are viable, they will survive;
if not, the money is wasted.
If folks are really worried about the employees, just give them lump sums:
100 000 employees
$100 000 each =
or better still, save taxes.
Let the rich use their golden parachutes.
- CrazeddogladyLv 71 decade ago
No, I don't think so. They haven't shown any interest in changing their ways to respond to changing times. Sometimes a dinosaur should be allowed to go extinct.