[Peace-discuss] Auto bailout - gas guzzlers guzzling more than gas?

[n.dahlheim at mchsi.com]

While I agree with Laurie's analytical breakdown of why the Big Auto companies should be nationalized 
and the implications this has for the capitalistic myth that continues to bewilder so many and inspire so 
many a failed policy; I think Wayne is basically right.  The car companies must die---they have had 
poor management for a very long time.  AG Daimler was positively thrilled to sell of Chrysler to 
Cerberus not too long ago; Chrysler's American management routinely insulted the German members 
of the car company's management team with their intransigence and obstinancy regarding company 
governance.  GM, as we all know, under CEO Rick Wagoner bowed to oil company pressure to shut 
down the production of EV-1 electric cars in the mid-1990s.  And, despite the overwhelming evidence 
that global oil production was getting set to peak in the early 21st century and the growing 
dependence of the United States on foreign oil imports, GM decided to avoid investing in capital 
improvements to build fuel-efficient vehicles.  Instead, GM decided to produce gas guzzling "light 
truck" SUVs in order to take advantage of loopholes in the CAFE standards.  GM did not reinvest in 
retraining its workforce, refurbishing factories, or developing much more efficient vehicles.  As such, 
there will be heavy consequences for GM's failure---the govt should cushion the blow to GM's 
workers---but, let the company die.  Spending precious money on them in a time of credit crisis is 
foolish when there are so many other social needs and many other businesses succumbing to failure in 
this current economic depression.

Best,
Nick


----------------------  Original Message:  ---------------------
From:    "E. Wayne Johnson" <ewj at pigs.ag>
To:      LAURIE SOLOMON <LAURIE at ADVANCENET.NET>
Cc:      'peace discuss' <peace-discuss at lists.chambana.net>
Subject: Re: [Peace-discuss] Auto bailout - gas guzzlers	guzzling more than gas?
Date:    Sat, 15 Nov 2008 21:12:54 +0000

> The big companies need to fail because inherent decay and obsolences.
> 
> Nationalized, they will become administrative monsters like universities,
> constantly wasting money, perverting reforms, and continually begging for
> new infusions of money.
> 
> Let the collapsing big companies die like so many old dead trees,
> so that fresh new growth can occur.
> 
> LAURIE SOLOMON wrote:
> > Try this on for size:  If a company is too big to let fail, it should be
> > nationalized since it is no longer a private operation with only local
> > impact and consequences but a national operation with societal impact and
> > consequences.  The whole notion of Capitalism and free enterprise was, as I
> > understand it, based on small local enterprises owned and directly run by
> > entrepreneurial individuals whose own money was at risk so as to justify
> > their getting the profits.  It was not based on large national and
> > international corporations run by hired managers who have little personal
> > stake in the corporation other than employment and are protected by "Golden
> > Parachutes" on behalf of institutional stockholders and third party
> > investors who have little actual control over operations.
> >
> > If these corporations are going to use national resources and have such
> > significance to the national economy and the lives of so many individual
> > citizens, then they should be owned and operated by the citizenry for the
> > benefit of the common good of the citizenry under governmental supervision
> > and control.
> >
> > -----Original Message-----
> > From: peace-discuss-bounces at lists.chambana.net
> > [mailto:peace-discuss-bounces at lists.chambana.net] On Behalf Of E. Wayne
> > Johnson
> > Sent: Saturday, November 15, 2008 12:47 PM
> > To: kmedina at illinois.edu
> > Cc: peace discuss
> > Subject: Re: [Peace-discuss] Auto bailout - gas guzzlers guzzling more than
> > gas?
> >
> > Just simply let the big companies fail.  They eventually will anyway, and
> > bailing them out only prolongs the agony and intensifies the impact.
> > If the tree doesnt produce good fruit, why do we burden the ground with 
> > a bad tree?
> > Cut the dead trees down, and make room for good new trees.
> >
> > If there is any benefit to the society from domestic auto production, 
> > some wise
> > entrepreneurs will rise up and start producing cars again, or mopeds or 
> > bicycles or 3 wheel bikes, etc. which they could do
> > now if they were not being crowded out by the giants who use government 
> > regulations as
> > a barrier to competition and entry of useful new small businesses. 
> >
> > Deep psychological blow? 
> > Oh my dear. You break my heart. Things are tough all over guys. 
> > But hey. I understand.  Here's a hug and a hanky.
> >
> > Karen Medina wrote:
> >   
> >> Ricky wrote: >   
> >> http://www.bloomberg.com/apps/newspid=washingtonstory&sid=aBlCucXR33Jw
> >>
> >>
> >> "The failure of those companies would likely bring down parts-makers,
> >>     
> > dealerships 
> >   
> >> and suppliers in addition to inflicting a deep psychological blow."
> >>
> >> The whole argument about "too big to fail" is frightening. I think there
> >>     
> > should be 
> >   
> >> restrictions on how large any company / bank can become. Wouldn't a bunch
> >>     
> > of 
> >   
> >> smaller companies create a more competitive environment? Allow the
> >>     
> > industries to 
> >   
> >> change directions a bit faster? Spread out the profits? Have fewer
> >>     
> > extremely high 
> >   
> >> paid individuals? Be kinder to their workers? Lay off fewer people in hard
> >>     
> > times? 
> >   
> >> -karen medina
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> >>
> >>
> >>   
> >>     
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> >
> >
> >
> >   
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