Wednesday, November 19, 2008

The End of an Era?

Today the Senate committee sent the Big 3 Automaker CEO's back to Michigan empty-handed. Unless something happens soon, these last vestiges of American manufacturing may be disappearing. Some, Republicans in particular, say that they should be forced into bankruptcy to make them reorganize into more efficient operations and create more fuel efficient vehicles. To them this is the absolute answer. No government bailout.

There is a danger in this route. First and foremost is the ripple effect it may have on the U.S. economy. Untold numbers of businesses and jobs may very well be lost, sending the already major economic mess into a deepening spiral. There there is the ultimate disgrace. In their restructuring the Big 3 may very well decide to sell. Who is licking its chops waiting for the opportunity? China. China desperately needs the technology to produce better vehicles, and where best to get it, but from the good old U.S. of A. They already hold billions in outstanding debt paper, so they might very well be able to pull it off.

Then, of course, the Japanese produce vehicles in this country only because they can't compete as well, if they only produce them in Japan. If the Big 3 go under or are gobbled up by the Chinese, there is nothing left to keep the Japanese plants here. Like the Chinese, Mexico is circling the campfire waiting for it to burn down so they can come in and lap up those Japanese plants.

If this scenario takes place, this country will have taken a big step toward further denigration of its world economic status. As it is right now, the world no longer sees us in the same light it did 3O years ago. We are no longer a world leader in so many areas. The last eight years under the Bush Regime has seen our status as a world diplomatic leader tank. Just as the English world empire faded into the past, the U.S. as a true world leader may very well become a shadow of its former self much faster than anyone imagined.


That Baptist Ain't Right said...

You make too much sense. You'd never get elected to anything. That also says you have character & honor ... more political liabilities. God help us.

Anonymous said...

Where do you turn when your world system fails? mom2

Oh, I forgot. Obama will save the world.

Georgia Mountain Man said...

"your world system?" "Obama will save the world?" Reading comprehension again, mom2. I was writing about the U.S. auto industry.

Diane J Standiford said...

Our auto industry had years to see this coming. They made poor choices and now employees and the average man/woman will sufferr. For CEOs---greatest union busting ever. You didn't bring up Obama, but I will and yes, he will lead us to a better place. Bush gave the finger to our environment from day one. Build better cars and they will come. Cut CEO $$. Help new green companies with financial rewards. People will blame Obama, no problem, he has broad shoulders and stays focused.

Georgia Mountain Man said...

Diane, you are absolutely correct. The US auto industry has been living in a vacuum for so many years. Now they are begging for help. As much as it turns my stomach to help them, I think it is a must or the country will suffer greatly. Hopefully, Obama and his group will be able to successfully save them and move them in a new direction.