First it was the financial industry, and now the Detroit automakers are waiting on relief from the government. What’s next? What about those retail businesses that have been operating since the depression, are we to say they don’t matter?
What about one of the the major retailers that our grandparents shopped at for many years and now we are following that same loyalty or are we? Retailers like Sears have been in business when my grandparents were teenagers and I can remember when my dad would only buy Craftsman tools and Diehard batteries. My dad always told me that you get what you pay for and the Sears brand has always been good to him.
Has the government challenged the auto industry? This business sector has been operating in the red for a long time and has not proven that they could turn it around and show progress. I think the government needs to help the automakers, but at what cost?
We need to focus and assist the major retailers who employ hundreds of thousands of people. This could have a greater impact on our economy if we ignore this business sector.
Detroit automakers got public reassurance Monday from President George W. Bush that short-term government help for the industry is in the works and could come soon.
“An abrupt bankruptcy for autos could be devastating for the economy,” Bush told reporters aboard Air Force One during an unannounced trip to Iraq and Afghanistan”.
Like I said earlier there are other business sectors that could have a greater impact on the economy. We all need to do our part by supporting our local retailers like Sears/Kmart.
What are your thoughts?
As bitter a pill to swallow as it is, we as a country, cannot let the domestic auto industry fail because the ramifications would be too great. However, those in the auto industry need to realize that they have been living in fantasy land for far too long with the benefit operating costs they incur and enjoy. No other industry has ever given, or its employees have gotten, the same perks as the Big 3. I grew up in Detroit surrounded by employees of the Big 3 and they have never known what it was like in the ‘real’ world. I’m not saying they didn’t deserve it, because if you can get it, why not? However, those times are long gone and they need to buck up and bite the bullet and bring themselves in line with the rest of the world. I also don’t think we should be bailing out retailers, but I do agree with you that we should support those that have been good to us and the country and continue to do so like Sears. They are our “old reliable” and they are also a wonderfully philanthropic organization that goes over and above in supporting our military and their families.
Wow. The whole issue of so-called bailouts is contentious. Consider, however, it only took 5 business days for Congress to grant $700 billion in aid (with an added $100 billion plus in special interests) for Wall Street and the financial industry. They are the reason we’re seeing record foreclosures and the current crisis for the auto industry. So, why all the angst over a “budget dust” loan for two of the Big 3?
Make no mistake, the transplants (Honda, Toyota, Hyundai, Mercedes, etc.) are also seeing sharp reductions in sales. Another ripple of Wall Street’s circling the wagons and banks suddenly unwilling to give anyone a loan. The Big 3 did not create this crisis. Neither did they precipitate $4 a gallon gasoline that caused a dramatic shift in preferred car types. Until this year, they were making what consumers wanted.
It takes 2-6 years to retool for new models, assuming the design work is already done. The fact GM and Ford both have fuel-efficient cars available and all 3 have hybrid models indicates they weren’t just sitting around depending on truck sales.
While I’m not particularly pro-union, many of us benefit from what they’ve gained for workers, like paid holidays, overtime, and vacation pay. What the UAW bargained for in the good old days is not a hit on them. I agree it may need to be relooked under current conditions, but that’s not equivalent to the unions won’t participate. The UAW has agreed to numerous concessions over the last several years and the scrapping of the Jobs Bank is a very significant chip they’ve played.
I’m not following the politicians’ logic, however. The domestic auto industry employs 1.6 times as many people as the financial sector. Wall Street gets $700 billion, but the automakers can’t get $25 billion without a detailed plan? Then, with a detailed plan, they still can’t get $14 billion? Think about all the suppliers and Mom and Pop businesses (restaurants, bars, etc.) that will fail if the Big 3 collapse. You do the math.