Here We Go Again.... Bailout Part 3

Sorry to all my readers for the infrequency here lately on my posts. I went from once a day to 2 -3 times a month. I am going to make it a priority in the New Year to get back to posting once a day again. I am not even going to make excuses for my absence. It is just a busy time of year.

But it seems like we are on the cusp of yet another of many to come Bail Outs for American Businesses. Now as most of you know, i am thoroughly dead set against any sort of bail out. I am a firm believer in the Free Market System. A free market system will have its peaks and valleys but it will overcome them all in short time if the government would just keep its nose out of it. Not too mention that it will rebound much faster will far less long term effect.

So with that being said Curious George Bush is pushing for 17 billion to be pumped into the failing big 3 US Automakers. Now there are many reasons for why the big 3 are failing. 1) the Unions have priced there salaries so high that the company has a harder time putting a fairly priced auto into the market. (Face it, an imported car costs the same in the US as a domestically produced car ). 2) the big 3 have an ego problem, they think like the government in that they believe that they know what the American public want and need. They also believe the American public are idiots, ones that will allow their auto needs to be dictated to them. 3) their product is substandard when put up against the foriegn auto makers. 4) Thier business model stinks and thier business is poorly run (Keep readig and you'll see proof)

- I saw a report somewhere in the last week. I believe it was for the year 2006. It compared GM and Toyota in the US. Both companies sold 9.3 million cars during that year. I do not remember what the sales figures were. But GM ended the year with a 3 billion dollar deficit, while Toyota ran a 17 billion dollar surplus. Hmmmm why is that. Both companies are in the same market, dealing with the same market variables, selling the same totals but drastically different profit margins. It all boils down to business models. Toyota has a much better and sound business plan. Run by true professionals. Not amateurs that the big 3 run their companies with. Hell i believe any one with half a brain and very limited knowledge of the free market system could make the companies more profitable than what they currently are.

I personally believe that a restructured bankruptcy is the answer for these companies. At which point they would gain leveraging against the unions and other entities to make it more viable in the market. Now i am not saying that the Unions are the main problem. I have given my beliefs above on who and what is the problem. But the answer is not government involvement. Government screws up things very very well. they have streamlined the Screw Up Process in this country. So what makes us and them think that they know what they are doing. CORPORATE WELFARE IS NOT THE ANSWER.

So in closing i will say that i know that this bailout will go through regardless of what the American people say about it. So with that knowledge i have an idea for a chance to the governments plan. Now let me preface by saying that i am against any type of taking from the American people by the government, I am also against any type of handout to people (and businesses). But seeing as to how this is going to happen. I purpose that the government give the big 3 the 17 billion over a 3 year period. But instead of giving the big 3 the money. Let the government buy cars with the money. Use these cars to give to the people (starting with the lowest tax bracket families). Ok let me explain a little. If you take 17 billion dollars, you can buy 1.1 million $15,000 cars. These cars could be used to help the lower income group families (I mean, lets face it, we are going to pay for it regardless, at least this way we are paying for actual product while helping families that would need it.

With the current setup, if we give them the money and the economy does not turn around, what is going to keep them in business. Nothing. They will need more money due to a lack of sales. So if the are producing something for the money they are getting. The jobs of the workers are being protected. The company will have income coming in and the American people will actually get something for the money. So we would be able to help more people differently with the bailout that i don't approve of.

But thats my take. So what are some the ideas the rest of you have on this?

VIVA LIBERTY!