The Heritage Foundation - Leadership for America

February 18, 2009 Bob Dayton, OH writes:

I would like to know something, did the government bail all the companies out during the Depression? I know for a fact, they did not bail out the small farmer during that period. My Grandfather lost his farm during this time.
My point is, why do we keep trying to reward people nthat don’t seem to know or care what the right thing is and how to handle large sums of money.

February 18, 2009 John Galt writes:

Let them go away…if they are unable to compete in the market, they are not worth saving. More good money after bad. It is unfortunate the auto executives are forced to try and profit in an anti-profit environment…

“One of the methods used by statists to destroy capitalism consists in establishing controls that tie a given industry hand and foot, making it unable to solve its problems, then declaring that freedom has failed and stronger controls are necessary.”
—Ayn Rand, 1975

February 18, 2009 Bram writes:

Chrysler is dead as a door-nail. Their plans don’t pass the laugh test.

GM might survive IF they re-organize through Chapter 11 - then they could shed excess labor, property, and dealrships fast enough to rebound. With another bailout they are just walking dead.

February 18, 2009 Ron Estrada, MI writes:

Though it saddens me to see my beloved auto industry dying a slow death, giving them more cash is like giving a drug addict a loan. They’ll return to the same bad behavior. Until they fix their real problems, they’ll just be returning the table for another handout.

February 18, 2009 Tom Beebe, St Louis writes:

A check of bloggers shows 95% + against more auto bailouts. Hardly a scientific sample, but by any statistical measure the people have spoken.

February 18, 2009 Beth, Texas writes:

If you have received bailouts, I will make every effort to not purchase your product or service.

If Detroit opts for bankruptcy, I would be much more likely to buy again.

February 18, 2009 Jay Venton writes:

It seems as though all of you have forgotten that Chrysler once received a loan and paid it back with interest and early I might add. I work for the Big 3, and as far as my company, we have made hard decisions and don’t need any loans at this time. The truth though, the auto industry has been crippled by our own government, outrageous CAFE standards and forcing us to build cars that no one wants.

February 19, 2009 A Williams writes:

I agree with Jay V. I don’t think Americans know what CAFE standards are and how they came about. They would rather let the East coast (NYC and Wash. DC - “the experts”) and the West coast decide what and how they should live. This has been very interesting to watch. If the American people really care, they should spend more time and effort being critical of Barney Frank, Chris Dodd, Nancy Pelosi, and Harry Reid - “the Big 4″. It is representation like these 4, who put the “regulations” onto the Big 3 (and NOT the UAW…). And now guess what, we’re all going to be “regulated”, since the government knows best.

February 19, 2009 ocala florida writes:

Can you imagine what will happen to all the suppliers to the auto industries? The auto industry saved this country in the depression. If GM goes under it will definitely affect many small manufacturing shops that supply parts. not only for GM but even the foreign car makers creating even more layoffs. Who do you think builds our military vehicles to include tanks? Don’t blame the auto workers for this disaster..They earn every cent they get! Walk through one of the assembly plants and I can guarantee you you will to run out due to the nasty environment dirty air, noise and harassment of the foremen. I know i’ve been there! The repercussion of a fold up will be a disaster to this country.As far as the wages hourly are concerned let me ask you what does a plumber charge or an electrician charge. $65 bucks an hour. Nice job- as far a wages is concerned. And don’t forget most of the skilled trades workers are union! I can grant you we will all feel this disaster if it occurs. It’s all in management. Just like the management of our government. Of course the elected officials are covered. No layoffs, free health insurance. big raises, and all the rest of the benefits.Nice job hey?

February 19, 2009 Ken Patterson St Louis writes:

It saddens me to say it, but the biggest problem in America today is our Federal gov. If it can be screwed up they either have =, or are going to do it!!!

February 19, 2009 Dennis, Idaho writes:

The UAW hold the auto industry in strangling union contracts that can be broken by Chapter Eleven bankruptcy. There was a time when unions were helpful in aiding workers in getting fair wages and safe working conditions. Now they are only interested in power and control which forces workers to pay dues if they want to work. I used to be a union member and saw my father and his fellow workers sold down the river by the union.
Government intervention by bailouts is not the answer either. Free market competition can and will save the auto industry IF the government will but out.

February 19, 2009 Claire, Florida writes:

I lived in Michigan until 1983 and still go back in the summer. The problem with the Big 3 is the Union. My father retired from Buick and always said,”The Union was good in the beginning but now is for the lazy man.”

February 19, 2009 DEBORAH, MARYLAND writes:

LET THE AUTO MAKERS GO AWAY. MAYBE, NEW AUTO MAKERS WILL CONTROL THEIR MONEY WISER

February 19, 2009 Frank W., New Mexico writes:

I hope the buggy whip manufactures don’t need 40 billion dollars to stay in business. Maybe the Big Three has run it’s course. The Auto companies need a whole new business plan to fit today’s economy. Maybe they should go non-union and get workers back in the plants that want and need a job. Not those that think they are intitled to a job. One thing is for sure, if they can’t make money off of the amount of cars they sell something is wrong with the way they are running thier business.

February 19, 2009 Patrick in Michigan writes:

I worked for the Auto industry for 9 years and had to actually leave because the job they gave me(janitor ) gave me 1 hour of work a day and the rest was spent trying to find a place to hide so management didn’t see us doing nothing. Funny how the union would defend workers that had the same job so much that the company had a quota to hire so many people and then we sat around doing notta. I’m sorry for the older workers who worken when Reuther was around and the UAW wasn’t corrupt. “To them I am apologetic ” because they were the first ones who were sold out by taking away there medical insurance benefits!

February 19, 2009 Tim writes:

As a kid back in the late 60’s my best friends dad was a UAW worker and I never forgot his story about only working two hours a day and have a bed made from cardboard and sleeping on it the rest of the day. I started working at the age of ten for my dad and I didn’t have a choice. So as you can imagine I try not to buy union made products and its not always possible. I also had friends who’s dads worked at the steele mill same kind of stories from then also. I detest paying union prices for any product. These days you can sue for anything under the sun. The only purpose for unions is to filter your money spent on union products back to politicians whom happen to be predominantly liberals. That is why they will spend massive sums of our money proping up the auto industry. If they do file for bankruptcy they will not be allowed to shed the pork that is the UAW. You see for all our money they dump in the auto industry they will get a percentage back in campaign contributions. Neet trick don’t you think.

February 19, 2009 Brad, Flint writes:

The Chrysler viability plan is not laughable. You actually need to read it. It is 177 pages long, but you only need to look at slide 163 that depicts the Bankruptcy scenario. BTW - Remember, that this is a LOAN and not a bailout (see also - banking, real estate disaster). If you allow just Chrysler to go into Chapter 11, it will cost the average tax payer a whopping $1100 each in lost income tax revenue & added expenses(from lost jobs, additional unemployment expenses, etc.). The $9 Billion loan to Chrysler is a pittance ($65 per taxpayer) compared to the $700B TARP fund, the $779B “Stimulus” bill, and the new $250B foreclosure avoidance funding. Stopping throwing the domestic automakers under the bus, because they are not making the same old cars from the 70’s that those on the Left Coast think they do.

February 19, 2009 Gene W., Texas writes:

I’ve worked as union, non-union and am now a business owner so I’ve seen 3 sides of this. I will NEVER sign a union contract to use union labor. If our congress and executive branch put as much thought into their jobs as the preceeding commentators we might just be in better shape. Neither party has done its job for us in years (think frat boys with expense accounts). Both sides have had lobbyists and criminals in their ranks for years and the current president is hell bent on breaking that record plus spending all our kids money as if it grew on trees. A loan is one thing (Chrysler paid us back early) but this current giveaway is mind boggling. These idiots, our congress, think they can run a viable worldwide company? They can’t even pay their taxes unless they’re up for a cabinet position and they certainly haven’t been able to run our country within a budget. Look at our national debt! And transparency, they pushed through a 1400+ page document full of pet projects because that’s the only way they could get those projects passed. Which one of them read it if any? To hell with the American people! Once elected they think they have a blank check! Throw the criminals in jail, let the stockholders fire, prosecute or keep their executives it’s their company and responsibility, but some of those criminals and executives work for us in our government. If the car companies have the collateral and the long term ability to pay the loans back, fine, LEND them the money but they need to clean up their houses for the good of the stockholders which are the owners the companies and partly the lenders as taxpayers to the companies. We the citizens own the United States of America not the legislative, judicial, or executive branch of government. Never thought I’d say this but think term limits.

February 19, 2009 Mark, Disney OK. writes:

I think a large part of the Detroit problem is the Unions. High hourly wages, benefits etc. They could build a better product for less money without them. Do away with the Union, and control cost.

February 19, 2009 Shar, Marble Hill, Mo writes:

As long as the federal government in involved its going to be bad. Its called paybacks. I just hope we can hold on till these people come up for reelection and the people stick to their principles and replace this democratic congress.

February 19, 2009 Mike Sez writes:

Do not give any business a bailout. Let them liquidate. If workers loose their jobs, get another one and suck it up.

February 19, 2009 W Howard Baker, Bardstown, KY writes:

I worked for a tier 1 supplier to the “big three” as well as transplants. The difference between the “big three” and the transplants was enormous. I was doing a plant trial of a part we were supplying to one of the “big three” and the parts were in a large carton. The carton had been left on the floor and needed to be lifted up to an assembly position by a forklift. The woman that was the installer stopped the line as she had no parts to install until the box was positioned. I asked if she had a forklift driver’s license and she told me that she did. I then asked if she would move the box as the forklift was right there. She told me that moving the box wasn’t in her job description that day and couldn’t move it. I then asked where the regular forklift driver was and she said that he was on break. The line sat down for a half an hour while we waited for the driver, but by that time it was time for her break, so I waited another half hour before the line started again. That and the rule that you can only build one platform in a plant instead of the Japanese method of changing platforms to suit demand in one plant, i.e., Honda runs Accords in Ohio unless there is more demand for Civics and then they run them instead.
No wonder the “big three” can’t compete.

February 20, 2009 Jimmy Konogeris - May (by God), Texas writes:

The business of America has always been business in one form or another. In our country’s infancy, Alexander Hamilton was smuggling to avoid the king’s tariff or “The Kennedy’s” introducing questionable scotch whiskey, even the cursed/wicked slave trade or whatever. After our terrible Civil War and the emancipation, Eli Whitney helped fill sudden void (business), Chism and Goodnight cattle trails….(business). If there is a demand a supplier or enventer will surface. Believe in our American ingenuity………it is still alive well!!

Our nation is still an experiement and is in a constant state of evolution ……….DEMOCRACY.

Companies should not be bailed out. Let them figure out what they need to do operate with profits…..thats business. Sad but true. Us/we, our children nor our grandchildren should not have to deal with consequences stemming from the agendas of serious liberals like Pelosi or Reid.

February 20, 2009 Jimmy Konogeris - May (by God), Texas writes:

Brad from Flint…..bottom line this Pig is a bail out.

February 20, 2009 Jimmy Konogeris - May (by God), Texas writes:

Yes! Unions were needed once. Feather-bedding is an attribute the unions created……they are too greedy……too crooked….they are feasting on their host….they have become cancerous.

February 20, 2009 Jimmy Konogeris - May (by God), Texas writes:

Yes! Unions were needed once. They are too greedy …they are feasting on their host….they have become cancerous.

February 20, 2009 J.Watts Va beach Va. writes:

Forget stimulus Money, Just get rid of Federal Government Taxation, I am a believer in the “Fair Tax” if implemented all companies & individuals will surge in financial gains

February 20, 2009 Bill, Magnolia Springs, Al writes:

If a company can’t make it on there own, then they should close the doors…no matter how large or old the co. the poor business dealings with the unions, is a clearly a problem of the co. not the problem of the taxpayer…anytime you have a union in a co. like the auto makers have it is death to the co…unions only kill co.’s….there will be no end to the taxpayers bailing them out, and the taxpayers donot have the money!! no matter what the pres says…look around you, do you see people losing things like there homes? well they are the ones who will have to pay the gov’s bill for the money given the the auto makers!!

March 1, 2009 Tom Beebe, St Louis writes:

So obama wants to use our money to help GM and Chrysler avoid bankruptcy which would cancel the UAW contracts. Ouch !

March 2, 2009 Mark, Stl Louis, Mo writes:

I know for a fact that Mr. Baker’s comment above to be true. Many times this occurred in a plant in St. Louis as well. I saw it first hand. There is to much separation of labor duties in auto plants. You should see what happens when a plant is short on manpower and the janitors are forced to work on the assembly line. Many start “feeling ill” and need to go the the plant medical department. Job classifications are killing the auto plants. However, a person can’t lay all of the blame on the contracts on the UAW. They asked and they received.

There are way to many friendly people on both sides in upper management and labor for the companies to have a chance. There are deals cut everyday. Management needs to lead by example and also give up their “pork”. A person can’t expect the UAW to be the only ones giving in.

To answer many of your question as reading this, no, I was not a UAW member in the St. Louis auto plant.