Friday, December 5, 2008

The prodigal industry

For a little bit of time now I have been warming up to the idea of of socialism instead of capitalism, but am realistic enough to see the flaws in both. Just like everything else, once human's natural imperfections are factored into the equation we are setting ourselves up for disaster. Perhaps not today or this decade or one hundred years, but eventually some failure comes with everything we do. I wish the best to the people of Michigan and the auto workers of America but we've leapt blindly with bare feet all ready onto a slippery slope with the 750 billion dollar bailout for the banking mortgage, executive vacation crisis and we have to put our foot down collectively.
Now, the auto industry wants their piece of our pie. I like the idea of helping our fellow countrymen out. I just see no reason to right now. Everyday you and I drive past, run by, see on the train thousands of car dealership and hundreds of thousands of un-used cars. New ones, used ones, new to you, what ever you want to call them they are there sitting in huge lots where a forest or field or garden once was.
What do they do with all these cars? I know they don't sell all them. If they did they probably wouldn't need any bail out money. They have mega year end sales, but they can't be that much help, because I have never gotten anything but screwed by a car dealer and know few who gotten "a deal" Why y not let them try and sell the cars they have. They are the ones who thought 200,000,000 Americans need a brand new car every year.
I googled what happens to these cars and to be honest I didn't find any good reason they shouldn't be forced to sell all the ones they have all ready over produced. They send some to movies to be blown up, which is no longer necessary with awful CGI. They send some to auctions, or to businesses to shuttle executives around. Some allege sneaky business of changing vin numbers and paneling and call them the next year's model ( that's ALLEGED). Then they "donate" some and use their foolish over production/ spending as a write-off. Because when you make a mistake if you donate it somewhere else it's like it never happened, oh well.
Even still it seems there are thousands "extra" cars out there for sale. Why not hold up production on new cars until all of these other cars are spoken for. I am no genius but 2007 over production + 2008 over production= 4015 overproduction. Over production + under selling= Losing tons of money. That looks right but maybe I am missing something.
Yes that will cost some Michigan natives jobs, but there are other industries. The rest of the country has managed to find jobs in other industries. It is not like making cars is as important farming, banking, clean air and the NFL. The auto industry needs rehab and not just AA it needs full 28 days , white room rehab.
Say you have a kid and that kid is a total dead beat, junkie. He comes to you and says "I need five grand to go to rehab and get fixed up." You have the five grand tucked away, do you just give it to this dumb junkie and let him walk out the door and go to rehab on his own accord? No you don't, unless you are a complete idiot. You would most likely either bring the kid to "rehab" yourself and pay for it yourself and let it be known that this behavior will no longer be tolerated. You will pay for it but with some sort of strict guidelines. Or you just straight up say no.
We have all ready been fleeced with the banking, AIG, Goldman Sachs, executive bonus, mortgage, whatever you want to call it bail out. They have taken their "rehab" check, walked out the door straight to the drug dealer and bought a pile of the finest China. Just in time for a big ass Christmas party. Are we going to enable another industry to walk in and do the same exact thing? The average American hasn't been helped. We don't get to go to spas or golfing and we don't get much help when something catastrophic, unplanned, and unavoidable happens. These executives screwed up, they have let their arrogance and greed put them in a position to fail. It is what people do, it is unavoidable. Sometimes we have to let those that err hit rock bottom and we can't let them drag us down with them. Especially when they have shown no sign they are actually willing to help themselves.
Are we going to allow another group of ego-maniacal, selfish, irresponsible, dickwads the chance to screw us again? There will be some self righteous political pandering and phony tough as nails reprimanding from some douchenozzle senator. Sadly, in the end they will get their bail out because we really have turned into a soft, enabling parent.

2 comments:

Bridge said...

Excellent post, my brother. If you hadn't had that sordid past with the Phish phollowing and whatnot, I'd've suggested a career in politics after reading this post. It's a comprehensive look at the big "crappy, tanking economy" picture. I'd never thought about what they do with all those cars at the car dealerships.

Madd-blog said...

i don't trust anyone that hasn't blown a couple of lines. It part of being well rounded