Many of you may already be against this concept of a bailout of Detroit, but what we all have to investigate is the true financial repercussions it will lead to.  Detroit has been one of the worse hit cities in the entire United States in terms of jobs lost and unemployment.  The Cause: NAFTA.  The incredibly open free trade we have had over the past 20 years has lost us hundreds of thousands of jobs each year.  That number hit a record high this year with us having lost well over 700 thousand jobs with several more months to go.  So, it is indisputable that the Auto-Industry has been hit especially hard by this concept as foreign car makers have made better and more efficient cars and as American manufacturing jobs have been outsourced to Canada and Mexico.  Now, all three car makers: GM, Ford and Crysler are suffering from the concept of a global economy and are reporting losses worse than anyone ever would have expected.  

The new bailout will ideally provide enough money in subsidies to these three companies so that none of them has to declare bankrupcy and so that they all can come back on the radar and start competing with foreign car manufacturers like Benz, Honda, BMW and Toyota.  At the same time, the bailout should not give more money than necessary and should not allow these companies to wastefully squander excesses of money like their poor management has done for the past decade.  The balance between these two is a fine line to walk, but the bottom line is that without help, America’s Auto Industry is headed for a sharp downfall.  


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