December 12, 2008 by The Constant Complainer
Welcome to the award winning blog of The Constant Complainer.
I don’t know about the rest of you, but I was extremely disappointed to see the bailout for the U.S. automakers fail.
In general, I have mixed feelings about the Wall Street bailout and have not been completely satisfied about how that process works and the fact that one person has sole responsibility to decide who gets money and who doesn’t. PNC Bank buying National City Bank is one derogatory example.
With that being said, of course I would agree that I don’t want U.S. automakers to file for bankruptcy. That is why I was supportive of a special bailout being proposed specifically for them.
If the auto industry collapses, a few affects come to mind. First, the auto industry is the catalyst that drives much of the advertising in the media industry. If the dealers and companies stop advertising, that in turn will cripple radio stations and newspapers. Second, many people with shaky credit have at least, over the last few years, been able to secure an auto loan, which has helped both the auto industry and consumer credit ratings. It’s fair to say that only the people with top-tier credit are getting loans now, but frankly they’re not the ones that need them. Third, I read a report earlier that said there were 100,000 people who became unemployed last month and the national unemployment rate is now 6.7%. Do you realize that the auto industry provides 3 millions jobs nationwide? A friend was just telling me that he thinks many people simply don’t understand how much the auto industry affects the entire country. I think he’s right.
What irritates me the most is the fact that the bailout for the U.S. automakers failed because of the UAW. Most reports this morning cite the union’s lack of willingness to accept stiff wage cuts is what caused the Senate to balk at the bailout. One report I read said the UAW didn’t want any cuts to take place for their workers until 2011. Hello!!! That’s funny, because the companies are going bankrupt now! I have always been pro-company, not necessarily anti-union, but this is clearly an example of how problematic labor organizations really are.
Anyway, let’s get back to the economy. It’s getting scary out there and I truly believe that this is just the beginning. I think it’s going to get a lot worse before it gets better.
Have a nice weekend…