Auto(matic) Bailouts For Big Boys
Fri, Oct 31, 2008
There has been a mindset in Washington D.C. that government should be completely hands off of business and markets except when, through poor management exacerbated by the economy, the biggest of the big companies should be bailed out with cash and guarantees and tax breaks.
Those on “Main Street” with real and sweat equity in their small businesses are asking: “Hey! How about a little help for my little business? I didn’t take risk (e.g., gamble) without insurance or reserves; I didn’t sell insurance without having the capital to make good to my customers. I didn’t continue to rely on products that had poor energy efficiency and serious environmental impacts so when oil prices soared I had not alternatives. I didn’t invest in products I didn’t understand.
The big U.S. automakers have been left in the dust by their competitors. True, the economic crisis has made their troubles worse. But look at their record: foreign companies build in the U.S. with fewer labor hours. And, for decades, the U.S. companies fought fuel efficiency while foreign competitors did much more about it. U.S. companies were slow to prepare for smaller cars as well. They were making too much money from behemoths.
If small business owners emulated the management of large auto companies, they would be out of business. No government bailout.
That’s my view. What’s yours?
Tags: bailout, economy, government, regulation, small business
Countless more ordinary people of equal talent never developed the leadership core required to run the show. Why not?
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