Auto Bailout?

I have been reading a lot about the auto bailout and I have mixed emotions, to say the least. When I think back to the Wall Street bailout, I had NO mixed emotions, I was (and still am) completely opposed to the idea. Now, I understand the financial fallout if some of those companies failed, but Wall Street got themselves into that mess, why should the rest of the country have to get them out.

Now, weeks later, banks still aren't lending money, which was supposed to be the point. Maybe someone can lend me $700 billion and not impose any oversight.

Back to the point of my blog posting tonight, the auto bailout. I think that most of the American Automakers problems are of their own making. Continuing to build huge, gas guzzling SUVs even when people aren't buying them is irresponsible. Of course, the American public is a fault as well. In our quest for bigger and better, we keep buying SUVs that are SO much bigger than we need. It is irresponsible, and wasteful of finite natural resources. I guess I am lucky in that sense, my dad stressed fuel efficiency for as long as I can remember, he even bought cars without air conditioning to improve gas mileage. My first car purchase was Honda Civic, which sipped its gas. Now, of course, my minivan's gas mileage gives me indigestion, but it is much better than any SUV that would seat six.

Okay, I keep straying off topic. The bailout?!?!?! I still have issues with the idea that I have to bailout the auto industry for their bad decisions. If I get into deep debt are they going to bail me out? Now, I have a HUGE understanding of the devastating impact it would have for any of the Big 3 to go under. However, I am not opposed to their declaring bankruptcy, the airlines have done so and still managed to come through.

Now, my biggest concern about any of this is the workers employed by GM, Ford, or Chrysler. I just read about a couple of Senators who want an alternate bill passed which would call for minimal oversight of the bailout, but would also require the blue collar workers (UAW members) to take huge pay and benefits cuts. I don't know about you, but the idea that Congress could require individuals to earn less and have less benefits is frightening. Maybe the Senators in question should be willing to give up as much pay and benefits as they want the workers at the low end of the totem pole to give up. I thought it was wrong when they (meaning the bankruptcy courts) made the airline pilots take pay cuts, and I think so now for the auto workers...that is what their contracts are for, to protect them.

If someone came along and told me I had to do the same job I am doing for less money than I am now would be terrifying. I need every penny I bring into my household, I would imagine the auto workers are in the same situation, especially in this economy. Taking away pay, taking away benefits, and cutting jobs only end up causing more harm to the economy because there is less for people to spend.

The idea that the Michigan auto workers should have to take pay cuts to get them "in line" with the Japanese car plants in the South is hard to swallow. The significant difference in the cost of living in the South and Michigan is huge. There is also the issue that we live on what we make. My rent, my car payments, my bills in general are based on my income at this moment. If you took away part of my income, but didn't do anything to adjust my bills, that would leave me homeless or having my cars repossessed, or having my phone and electricity cut off. Not to mention that I have four children that appreciate food on the table and clothes on their back.

Yes, Detroit needs to become more efficient and more cost-effective, but to do so on the backs of the working class is inappropriate and unfair. Someone needs to let Ford, GM, or Chrysler know that if they can build a car or van equivalent in fuel efficiency and reliability to the Japanese, I will be first in line to buy one. Not to mention that the Japanese cars just look nicer inside and out.

Now that I have done rambling, I guess I would approve of a bailout as long as it didn't hurt the working class. Of course, nobody asks me.