Latest Talk of Bailout--I'm less thrilled with

The housing crisis led to the $700 billion bailout about a month ago. Now there is talk of bailing out the US auto industry. I have been in Detroit as recently as a few months ago and have witnessed firsthand just how bad things are there. Things are real bad. There were parts that looked like New Orleans after Hurricane Katrina. I watched a special not too long ago where homes, and these were decent homes 2,000 sq ft in decent shape, were going for 10,000. No I did not forget a zero. So yeah Detroit, the Motor City, has major issues, I agree and know that.

However

The big three have been horribly run, produced inefficient gas guzzling pollutants, with subpar quality for some time. And now they want a bailout. I guess since the housing industry got one, the automakers feel they should get one too. Yet I have major qualms about this. First off one of the things I heard during the election was about how important capitalism is to this country. Yet here we are talking about an even bigger bailout than the first (likely $1 trillion)to bailout a mismanaged industry. How is this even remotely capitalistic?

You may or may not remember that in 1997 Bill Clinton got the big three CEO's to sit down and gave them a billion dollars to work together and make more efficient, less polluting gas guzzlers, better technology, hybrid type autos. At the time this was a big deal. In the beginning the companies worked together but then since the money was not held to a mandate, no strings, they stopped working and put out bigger gas guzzlers, does Hummer ring a bell, than before. It was a short term trip that made them quick money but put them behind.

Meanwhile

Because Honda and Toyota were left out they became worried they were going to get left behind. The US government had given money to the the big three and they were supposedly working together. They went right to work. We know the results. If you want top quality, fuel efficiency, cutting edge technology you buy a Honda or Toyota, not American. The US brand is getting killed when they should have been ahead. Working together with the aid of the government should have been enough, but alas short term earnings and little foresight has led to them being 10 years behind when they should have been ahead. It is disheartening to say the least.

Also

You may not know that the US auto industry has fought against every advance in automobile technology. This includes items such as seatbelts and airbags. They did not give in until Congress forced them to make them standard. They have lobbied against better fuel efficiency and less pollution every single time. They have tried to stop every advance in automobile technology. And now they are begging for help because their business practices have failed, their products are sub standard and the competition is killing them because of what they have done to themselves.

I feel bad for the thousands of people this has effected. If you look at the business practices of the US, those on top do quite well, but are more than willing to take the golden parachute and screw everyone doing the real work. We have witnessed the Enron scandal among other notable businesses more than willing to make sure that management is taken care of before taking the fortunes of the masses of their employees. Recently this happened with the banking and financial institutions in this country. Now because of mismanagement an entire city is feeling the effects. Not just any city, one of the largest not on the US, but the world. I do feel bad for these people, they didn't make the decisions that led them to ruin, yet they are the ones effected by it.

However if we are going to claim to be a capitalist society then I don't know how this could pass? It goes against all the principles of capitalism. Private business, little or no government interference, competition, let the market decide, etc... It will reward every bad business practice that they have undertaken, which is certainly anti-capitalist.

Yet

I feel for Detroit, it at one time was the heart of the US economy. I saw the devastation first hand. It is the closest to a disaster area I have ever seen. Millions of people have been effected by the business failings of a few. Should everyone be punished because of the greed and mismanagement of a few?

It is interesting to me that while republicans and conservatives warn of socialism, it has been the businesses who have come running and begging to the government for help.

Finally

I think it only fair to end this rant with a few suggestions. I hate complaining without solutions.

First off I think what the CEO's make is way too much. Give the money back to those doing the real work. Over the past 50 years CEO salaries have increased by incredible amounts. In some companies CEO's make upwards or $30 to $50 million. Money like that only corrupts and leads to these problems. Forgive me if I am un-American by saying that perhaps this practice has been one of the downfalls of the current economy. Greed leads to deceit, lying, cheating, and every other bad business practice.

Secondly Regulation is a necessity. Everything I have read and heard about the current economic crises have stated that deregulation has been the main reason for problems. Zero accountability is never ever a good thing.

If money is given; strings need to be attached. The failings of the big three in 1997 show that when money is given without mandates then little or nothing gets accomplished. Again regulation.

Finally I think less needs to be made of trying to get a quick buck. We need quality as well as consumer/employee/environment friendly businesses. The auto industry can't keep lobbying against advances because it will strain them when in actuality it will be better for everyone. Businesses need to be accountable not just to shareholders but to the general public as well. Profits cannot come at the expense of the public well being. We have to look out for everyone, not just ourselves.

I'm done ranting... for now