Why the Big 3 Bailout is Bullshit: Cadillacs Made in China By nostalgiphile in MLP Wed Nov 19, 2008 at 05:02:40 AM EST Tags: bankruptcy, automobiles, Japan, made in China, Detroit, YFI (all tags)
	First, they say that between 160,000 and 3 million manufacturing jobs are on the line, but then turn around and blame the unions (the organization that represents those workers). In fact, foreign (mainly Japanese) automakers employ almost as many Americans as the "Big 3" do (113,000). Helping GM, Ford, and Chrysler could actually hurt those American auto-workers at non-Big 3 factories. Moreover, even according to optimistic estimates, the crappy clunkers Detroit has been making for years will be far less feasible in the coming worldwide depression than the smaller, cheaper more sensible Japanese brand cars which are (by % of parts/labor) MORE AMERICAN than the "American" cars. (GM parts are often made in China, whereas cars like the Honda Accord are 70% American-made).

Second, why the fuck does this $25 billion need to be spent to help the Big 3 in the first place? What exactly will that money do to postpone the inevitable failure of these inefficient dinosaurs? Will they become more efficient, productive organizations? Doubtful, and this is why I like the point made by former Secretary of Labor Robert Reich: "When a big company that gets into trouble is more valuable living than dead, there used to be a well-established legal process for reorganizing it - called chapter 11 of the bankruptcy code. Under it, creditors took some losses, shareholders even bigger ones, some managers' heads rolled. Companies cleaned up their books and got a fresh start. And taxpayers didn't pay a penny." (Audio for you illiterate asshats) Both The Washington Post's George Will and The New York Times agree with Reich, the latter with the stipulation that the government should oversee a bankruptcy and make sure GM becomes more efficient--especially by getting rid of its more superfluous brands (e.g., Pontiac, Cadillac). I strongly agree with this, but would further insist that--if we are really worried about American manufacturing jobs--any financial assistance to GM would require it to invest in producing cars like its new hybrid LaCrosse in the USA rather than in China. (In order to seal its deal with China, GM had to agree that a percentage of each LaCrosse would be "made in China" and plans to build a $250 million fuel research center in Shanghai). After all, how stupid would it be for US taxpayers to subsidize an auto industry that outsources to the People's Republic of China, the main threat to manufacturing jobs in the US? Wouldn't it be wiser to let these companies go under via chapter 11, and offer tax breaks to Honda, Toyota, and Nissan for each laid off Big 3 worker they hire?

Poll

Save the Big 3? No, not if it means Pontiac finally dies. 40% Yes, they just need more time to make EVERY CAR in China. 16% Don't care, I'm a foreigner. 26% Don't care, it's written by nosta. 0% Don't care, not relevant to my interests. 10% WIPO 6% Votes: 30 Results | Other Polls

Related Links

between 160,000 3 million manufacturing jobs as the "Big 3" do (113,000) crappy clunkers made in China Robert Reich Audio The Washington Post's George Will The New York Times rather than in China plans to build a Also by nostalgiphile