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Monday, May 18, 2009

"Why Chapter 11 is a good thing for the 'Big Three" to survive"!

I've been vocal about my feelings about the current status of our troubled auto industry and it's future. A lot of people don't see it my way, and I'm not surprised. This was a billion dollar industry that has been left in turmoil and is literally on it's last legs unless some dramatic changes are made. Sure, these changes affect people's jobs, economy, and health however I don't see any big changes taking place anytime soon. Greed is the problem here along with mis-management and unions not willing to give an inch to make things better. Dealerships are being forced to close...steel mills are shutting down and as far as I'm concerned, they can all go belly up. If we can get steel shipped to the United States from Asia, Europe, or the Middle-East cheaper, I'm all for it. This recession didn't just pop up out of the blue. Just like cancer, it began and spread to where it is now. Controversial filmaker, Michael Moore brought this to our attention several years ago with his documentary examining the Detroit Auto industry which was already showing signs of collapse. Oil industries and prices per barrel fluctuate minute by minute and are determined by the numbers on Wall Street. The fact of the matter is, we need other sources of energy and put it to good use. The oil shieks have us hook, line, and sinker and know that Europe, Asia, and the United States would be in turmoil without oil as a main energy source. So, what has been done? Nothing. About a decade ago, General Motors received a grant by our government to produce electric cars. GM's spinoff corporation, Saturn was taking off and got the contract for the majority of the work. Lots of automobiles were produced as a result however, with little enthusiam. They just weren't practical. At best, they could 30 or 40 miles before needing to be serviced and the battery recharged. Top speed was about 40 mph and to say the least, they didn't look too attractive either. Consumers who went out and took advantage of the deal, they were stuck. Getting to and from work with the car sometimes required the motorist to pull over and plug the car in for 24 hours before proceeding on. It was a failure. The government then bought the remaining inventory back and had the steel melted down and that was the end of that. Since then, a lot of other stuff has come along the way... in the early 2000's the SUV and pick-up were best sellers. The bigger the better. There was never any reason to believe that oil prices would rise to $5.00 a gallon but, it did. Now, we're reverting back to the old way again and going back to smaller cars and buying used cars, or even keeping the hunk of junk you have. Didn't anyone learn a lesson from all of this? You would think that unions such as the UAW and USW would be willing to cave in a little bit but, the won't do it. They've managed to sideline the American dream. While people can't afford the cost of a new car, factories continue to spew new vehicles off the assemnly line every 20 seconds regardless of the fact that they will more than likely rust away in an empty lot. Still, the unions persist to keep things as is. Regardless of who's buying what, they insist they work 24/7 and 365 days out of the year at $20 an hour. They don't have this problem in Europe, and that's why Honda, Toyota, and others are getting the lion's share of business! Everyone in this country has taken advantage of a good thing and greed always wins. People are broke but still find the need to have more kids, new cars, and mazed out credit cards. When it's time to pay the fiddler, if they lose what they have, things turn out bitter. The government has no business meddling in the auto industry and needs to close the book on bailing big corporations out of trouble. Charity, as they say, begins at home. Why is then that the U.S. Postal Service continues to raise the cost of mail delivery and eliminate days of the week? Shouldn't the help get started right there? I still say, make the Postal Service a public entity where mail can be sent and delivered for free. It can be done through the use of advertising to offset the cost of a stamp. Would you rather have your mail delivered for free with a stamp for Home Depot on it, or do you want to continue to pay for the continuous rising cost of a stamp? Think about it!

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