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Categories - Copywriting - Shopping - Free Online Business Help - Telecommunications Services Articles: Government - We Should Loan Automakers Money Quickly The issue right now is not what is wrong with our carmakers. The issue is that 10 million Americans have already lost their jobs over the past 8 years and if the armchair automakers are allowed to let our car companies close, another 10 million Americans will lose their jobs and the lost commerce from the money that they spend will cause more of our companies to close and another 10 million to lose their jobs. The unemployment costs to the American taxpayer will exceed $200 billion per year.
The idea that foreign car companies manufacture cars here and make money so there must be something wrong with domestic car manufacturer management is false. Foreign car manufacturers assemble cars here and there is a big difference. The components that they use during the assembly are still manufactured in their plants in their own countries and then shipped here for the assembly. They take advantage of import duties designed to help American manufacturers during the process. They regularly raise prices on their own components shipped here to make sure that their USA assembly plants do not make too much money and avoid paying millions in domestic corporate taxes in this fashion. Most of the money made from the sale of these American assembled cars still ends up out of the country. Their cars do not qualify as manufactured in the USA under government guidelines, which state that the components used in the assembly of a product must also be 85% manufactured in the USA. American workers employed by these companies are not being employed as much as they are being used to benefit foreign manufacturers.
Less than 10% of our work force is employed in manufacturing. We are now as dependent on foreign manufacturing as we are on foreign oil. While we manufactured more than 50% of the products required to win WWII, we no longer have this capability. Manufacturing capability now exists in countries that are our enemies or could easily become our enemies based on our past histories. If our car companies are allowed to close, the last vestiges of our own manufacturing capability will disappear and if we need it, we will not have it. Maintaining our manufacturing capability is a matter of national security.
What Congress and the Senate are arguing about is whether or not another 20 million Americans should lose their jobs. If this happens, not only will more American companies close their doors, but companies in other countries will begin to close up and people in 3rd world countries will begin to starve. Fresh off of a bank bailout that turned into a theft of taxpayer money and embarrassed them, they are confusing the two issues. One issue directly benefits American workers and the American economy while the other only benefited the banks. One issue only added fuel to the fire while the other will put some Americans back to work and the money that they spend will add to domestic commerce and stimulate the economy. One issue allowed mortgages to continue to fail and jobs to be lost while the other will have the opposite effect.
Since Congress or the Senate cannot get the banks to loan the money that was given to them to benefit the economy like it was intended, we not only should loan an industry that has a history of paying us back enough money to survive and start making cars, we should loan Ford Credit, GM Credit, and Chrysler Finance money. We should mandate that they use the money to start making car loans at low interest rates to anyone who can afford the payments and guarantee the loans.
The bottom line is that we can loan up to $200 billion that has a real good chance of being paid back in order to stimulate the economy and maintain our manufacturing base or we can start losing an increasing $200 billion per year in unemployment costs.
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