It's For The Ecooooooooooonomy!

[unixronin]

Our thanks for bailing GM out? They’re going to roughly double the number of jobs exported to China, Mexico and Korea.

Yeah, that’s really going to help the economy.

Let the bastards fail. They got themselves into this mess. We can't keep throwing good money after bad forever.

Oh, wait, I forgot. It's not really what you could call "good money", is it? It's probably still wet from the presses...

Comments

[radarrider]

This paragraph tells the tale:

Essentially in control of the company, the president's autos task force faces an awkward choice: It can either require General Motors to keep more jobs at home, potentially raising labor costs at a company already beset with financial woes, or it can risk political fury by allowing the automaker to expand operations at lower-cost manufacturing locations.

Good luck with that!

[lebo-superman.livejournal.com]

Here's an idea - for every $1Million in relief, they have to create one US job. Either that, or give the cars away for free, because the US consumer already paid for them.

[ithildae.livejournal.com]

How many well meaning idiots are trying to spend my money for something that is for "my own good"? Do the math. How many new jobs are going to be created by GM? How many new jobs are going to be created by startup companies? Do you have any idea just how much $100.000 is to a startup? How many startups can you help for $15,000,000,000? If we never expected to get any money back from startup investments, it would pay off better than throwing money at GM. Weren't we doing this ten years ago? What is the definition of insanity?

[elegantelbow.livejournal.com]

Do you have any idea just how much $100.000 is to a startup?

*nod*

The U.S.'s strong suit has always been innovation -- which is usually done by small companies trying new stuff, not large old companies tweaking the location of the cupholder.

[lebo-superman.livejournal.com]

I say we cancel the check to GM, and issue a check for 1% of that much to Tesla Motors, sit back and watch REAL economic benefits kick in.

[ilcylic.livejournal.com]

Well, I hate the idea of subsidising anyone, but I like the amount better.

[ithildae.livejournal.com]

I have a serious want of the REEV white star that they were talking about. If it is comfortable, I would be happy to find a way to get one. The Prius owners will never know.

Last I heard, Tesla Motors was having some serious financial crunching because they could no longer get credit on anything like reasonable terms. 1% would go a long way to keep them going and growing.

[lebo-superman.livejournal.com]

That's why I said we should subsidize them. Look at it as underwriting the start-up costs - except that 100,000 won't even touch a decent plant to build autos in. The main difference is Tesla would be an investment in a better vehicle for the future, not more of the same that we've had for 100 years. Did you know that the Ford Model A got better fuel mileage than most mid-size cars on the road now do?

[unixronin.livejournal.com]

Honestly, I believe that every dollar we throw into the black hole of GM and Chrysler is lost, because in all ways that matter they are incapable of changing. The things that are wrong with Detroit are inseparably bound into Ford, GM and Chrysler at every level, from the shop floor to the boardroom. Any attempt to prop them up is just going to burn money while putting off the inevitable, while letting them become progressively more and more uncompetitive.

It's time to quit flogging the dead horse and move on. Tesla is probably a great place to start.

[ithildae.livejournal.com]

The horrid irony is that it is primarily government regulations that prevent them from making fundamental changes. Remember that many laws support the unions and prevent the manufacturers from making meaningful changes in labor costs. (Disclaimer: I am in favor of unions existing. I know people whose parents worked the coal mines of West Virginia. I really do favor unions.)

[ithildae.livejournal.com]

1% of $15 billion is more than $100,000. I did know that the Model A got better mileage. I also know that my 14 year old Saturn has more luxuries and features than were ever dreamed about when the Model A was in production. That lost mileage goes to cover my comfort, among other things. I understand the cost and trade offs, I also understand that there are better ways of getting around today.

I think we agree that subsidizing a failing giant is a futile gesture, with any kind of planning horizon of more than a few months. One specific example of a better company to invest in makes a great point. I think there are many examples of a better investment. And if they were invested in, they would easily absorb the lost jobs from the failure of GM. The whole concept just turns on my "rant" mode.

[luxobscura.livejournal.com]

Leave No Job Behind

[ilcylic.livejournal.com]

I wonder how The Chosen One is going to square that with the Union voters he just bought.

[ithildae.livejournal.com]

He can't. He already did the Bend Over Bingo to the UAW with the Chrysler sale to Fiat. If there is anything left of the Constitution in three years, he is going to have a tough job keeping his seat.

[smandal.livejournal.com]

Well, there's a reason the Chinese don't mind backing US currency ...

The US capital establishment gets to survive, maintaining confidence in the economy, and the Chinese get export revenue for the service.

If growth in US productivity matches debt growth, this is a good bet; if not, the world is in trouble ...

[ithildae.livejournal.com]

Our current debt growth is not a good sign.