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Boost it!

Screw The Auto Bailout: Why Not Just Nationalize The Industry?

Agent009 submitted on 12/4/2008 Official Bell & Ross Timestamp: 10:24:10 AM

41 user comments | Category: Misc News | Source: | SOURCE: www.latimes.com

At the moment, DC and Detroit are brooding on a Morton's Fork: Watch the American automakers auger in and take hundreds of thousands of jobs with them, or bail out these failed and incorrigible companies whose management so richly deserves whatever hell (flying coach?) awaits them.



Tops on the critics' list of grievances is Detroit's failure to anticipate the inevitable. Why didn't these companies sufficiently invest in next-generation technology -- fuel-efficient small cars, high-mileage hybrids, plug-ins and all-electric vehicles -- that could help wean the U.S. off foreign oil and take the automobile out of the climate-change equation? As the auto executives again bring their begging bowl to Congress, a consensus is forming: No bailout unless Detroit builds greener cars.

Nonetheless, the question remains: What to do about the domestic automakers? My modest proposal: Nationalize GM.




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Screw The Auto Bailout: Why Not Just Nationalize The Industry?

About the Author

Agent009

"If everything seems under control, you're just not going fast enough."

— Agent009 (View Profile)


User Comments

AgentOrange

Hmmmm, Nationalism and Socialism. A novel idea.
We could call it National Socialism...

— AgentOrange (View Profile)

Posted on 12/4/2008 11:06:44 AM | reply to this comment | Votes: 1   

Agent009

It is an interesting viewpoint... Not sure if I advocate it though.

— Agent009 (View Profile)

Posted on 12/4/2008 11:11:35 AM | | Votes: 1   

ThierryHenry14

I remember a little regime in the 20s and 30s that used national socialism to reinvigorate a nation, and they called it Nationalsozialismus.

It might actually work...

— ThierryHenry14 (View Profile)

Posted on 12/4/2008 1:03:13 PM | | Votes: 2   

Hyundai

"Hmmmm, Nationalism and Socialism. A novel idea.
We could call it National Socialism..."

Ahem... National Socialsm = NAZI.

Nationalsozialistische Deutsche Arbeiterpartei

Or,..

National Socialist German Workers' Party

— Hyundai (View Profile)

Posted on 12/4/2008 5:29:06 PM | | Votes: 4   

enp83

dumbest idea ever, let's turn over the big 3 to the same people who run amtrak. It'd more or less be business as usual. Amtrak runs routes that lose money, big 3 sell cars that lose money.

— enp83 (View Profile)

Posted on 12/4/2008 8:36:27 PM | | Votes: 3   

1995e34

amtrak loses money in part because the massive subsidies to air and road traffic.

also, the nazi party seemed to run germany pretty well...asides from the whole genocide thing. fascism really got a bad name after that.

— 1995e34 (View Profile)

Posted on 12/5/2008 11:47:00 AM | | Votes: 2   

1UAW

Interesting.....

— 1UAW (View Profile)

Posted on 12/4/2008 11:55:29 AM | reply to this comment | Votes: 0   

GreenPlease

I listened to the Congressional testimonies today. Recurring theme: tax-payer debt senior to other debt. Read: built in nationalization.

We all know that $34 Billion isn't enough to float these companies. $34 billion is probably just enough to be "served" by liquidation of factories, IP, etc. Thus, the Government is building a Trojan nationalization horse with their "bridge loans."

Larger powers are at play...

— GreenPlease (View Profile)

Posted on 12/4/2008 5:52:08 PM | | Votes: 3   

rocker

Until gas hit $4 -$5 a gallon no one had a problem with buying a SUV or gas guzzling car. Why do you think both Nissan and Toyota jumped headfirst into that market. There was money to be made. The US Congress could not regulate the oil industry or the commodities markt(where the real trouble came from) and so now they blame everyone but themselves(US Congress). Free Market or Death.

— rocker (View Profile)

Posted on 12/4/2008 12:04:47 PM | reply to this comment | Votes: 5   

GreenPlease

Under this train of thought, people should be buying SUVs again. No?

The reason oil has imploded is that the financial markets have ceased to function. They do not, presently, correctly price in the risk of a supply short fall.

— GreenPlease (View Profile)

Posted on 12/4/2008 5:49:38 PM | | Votes: 1   

VISO

Nationalizing the automotive industry has bad precedence from previous historical experience. What is happening to Detriot is very similar what happened to the British in the 60s and 70s when British Leyland was formed after the British government nationalized its automotive industry. The British have never recovered with many British brands disappearing completely. Only Bentley, Rolls, and Mini survive and prosper because of foreign intervention. If this happens it will the death of the American automotive manufacturering.

— VISO (View Profile)

Posted on 12/4/2008 12:08:28 PM | reply to this comment | Votes: 5   

lewishamiltonpimp

2 words.

British Leyland.

— lewishamiltonpimp (View Profile)

Posted on 12/4/2008 12:13:40 PM | reply to this comment | Votes: 5   

1995e34

yes sir!

— 1995e34 (View Profile)

Posted on 12/5/2008 11:47:17 AM | | Votes: 0   

skippee

YA....the government can't even run the country properly, what makes you think they can run auto companies????

— skippee (View Profile)

Posted on 12/4/2008 12:15:22 PM | reply to this comment | Votes: 4   

EL34

It's NOT the car companies, it's the Union are their demands for more and more money.

The Unions have a problem with money and they need more and more every year.

UAW - RIP

— EL34 (View Profile)

Posted on 12/4/2008 12:36:53 PM | reply to this comment | Votes: 5   

1995e34

http://www.forbes.com/business/autos/2008/12/04/detroit-labor-uaw-biz-manufacturing-cz_jm_1205union.html

— 1995e34 (View Profile)

Posted on 12/5/2008 11:53:49 AM | | Votes: 1   

mini22

Many governments have helped auto indutries in other countries-Britain,France,Germany,Italy etc. when their auto makers were in trouble. This is not the only government that has done this.Provided it is a temporary situation with proper accountablity I'm not against it.The question is do we want manufactoring in the country or not.

— mini22 (View Profile)

Posted on 12/4/2008 12:38:58 PM | reply to this comment | Votes: 3   

Badgewhore

Bush/Cheney has already turned america into a commie nation. Even on the internet you ain't free, someone will turn your arse over if you said something not to their liking. Worse yet, that person takes it upon his/herself to play a communist dictator and bans you. You're already screwed and don't even know it.

FYI, america has gone down the toilet, learn to adapt cause we ain't bailing you out.

— Badgewhore (View Profile)

Posted on 12/5/2008 2:22:25 AM | | Votes: -1   

Badgewhore

sorry mini22, that wasn't meant for you, it's for M35MT.

— Badgewhore (View Profile)

Posted on 12/5/2008 2:33:36 AM | | Votes: -1   

M35MT

Yes let's just give our country to the Russians and become commies!

NO.

— M35MT (View Profile)

Posted on 12/4/2008 12:49:13 PM | reply to this comment | Votes: 3   

Badgewhore

Bush/Cheney has already turned america into a commie nation. Even on the internet you ain't free, someone will turn your arse over if you said something not to their liking. Worse yet, that person takes it upon his/herself to play a communist dictator and bans you. You're already screwed and don't even know it.

FYI, america has gone down the toilet, learn to adapt cause we ain't bailing you out.

— Badgewhore (View Profile)

Posted on 12/5/2008 2:34:01 AM | | Votes: -2   

M35MT

You clearly dont understand politics.

— M35MT (View Profile)

Posted on 12/5/2008 8:39:21 AM | | Votes: 1   

1995e34

badgewhore...careful what you say...on the internet...

— 1995e34 (View Profile)

Posted on 12/5/2008 11:55:55 AM | | Votes: 2   

inspirion7

Uh, why? That is why MOST countries around the world refuse to become directly involved in the affairs of corporations. They might assist but not often take on and run a capitalist designed company.

Kill competition, go socialist.


I'm sure 009 is only playing the DEVIL'S ADVOCATE because for really suggesting such an idea would be well below your paygrade.

— inspirion7 (View Profile)

Posted on 12/4/2008 1:19:10 PM | reply to this comment | Votes: 0   

M35MT

you're an f'ing idiot. kill competition? you kill motivation, you kill quality, service, revenue, capital, progress YOU FAIL.

— M35MT (View Profile)

Posted on 12/4/2008 4:25:48 PM | | Votes: 1   

M35MT

my bad inspirion (possibly my bad) i think i angrily and rashly went ahead and assumed you were pro-socialist.

At least I was able to use the word "rash" in a sentence.

— M35MT (View Profile)

Posted on 12/4/2008 4:27:20 PM | | Votes: 0   

jimmyjump

That is about the worst idea I have ever heard...but this

Green cars or lack there of is not the crux of the issue. People buy when they want and they buy what they want. The market decides. Did an unhealthy amount of poor planning and heavy reliance on large SUV's/Trucks by the big three agrivate this? Yes it did and now these companies need to face the concequences of that. But at the end of the day they built what the american people wanted. Next to the HUMMER there was a Chevy Metro back then too.

At the end of the day whether it is a bail out, oh I meen a 'loan', or we salute Marx and nationalize this is our tax dollars being use to do this. Instead of taking from you me and letting the few decide who wins or losses why not just give them breaks on their taxes or give us breaks on our taxes on car loans and let our AMERICAN system work.

— jimmyjump (View Profile)

Posted on 12/4/2008 3:56:15 PM | reply to this comment | Votes: 3   

mini22

I would like to know what percentage of the buying public is not buying US cars as a result of the credit crises versus preferring a foreign make. With 99% of all makers car sales significantly down I'm guessing that this is more about lack of credit rather then personal preferences.Isn't it interesting that congress it playing hard ball with the auto makers in making them come up with a business plan for 34 billion when congress did not require this of banks and AIG when it lent them more then 1/2 of the $700 billion allocated. What happened to the term"fair but equal"?

— mini22 (View Profile)

Posted on 12/4/2008 5:25:23 PM | reply to this comment | Votes: 5   

NItePhire

+5

— NItePhire (View Profile)

Posted on 12/4/2008 10:10:51 PM | | Votes: 0   

rubenkincaid

Nationalization... bad idea for BL, for Peugeot, Citroen, etc. Yugo was a great though, right?
In common with two of these US car mfrs is a crappy product - GM and Chrysler make lousy vehicles (Ford, a better R/D record) GM and Chrysler are at the point where they should fold.
Use the bailout for the workers to relocate and reeducate.

— rubenkincaid (View Profile)

Posted on 12/4/2008 9:02:01 PM | reply to this comment | Votes: 1   

Badgewhore

Lets nationalize the free market.

— Badgewhore (View Profile)

Posted on 12/5/2008 12:21:48 AM | reply to this comment | Votes: -1   

XYZZ


even if i were President-for-Life, el Supremo, Glorious Leader of the u.s. of a., i would NOT BE SO STUPID as to want to national gm or chrysler. why would i wanna take over sinking ships bleeding red ink?

i would nationalize THE OIL COMPANIES!


— XYZZ (View Profile)

Posted on 12/5/2008 7:12:28 AM | reply to this comment | Votes: 0   

RaulT

I don't understand this argument, apart from the SUVs (which Toyota, Nissan, and Honda also have) the big thress, especially GM, do have fuel efficient cars. I wouldn't quite call the Cobalt a gas guzzler

— RaulT (View Profile)

Posted on 12/5/2008 11:19:27 AM | reply to this comment | Votes: 1   

XYZZ


the smarter asian ceos didn't put AS MANY eggs in the suv/v8 pickup basket.

— XYZZ (View Profile)

Posted on 12/7/2008 6:43:39 AM | | Votes: 1   

1995e34

i love big government, but only when nationalizing essential services; oil, electricity, etc. luxury goods, not so much.

— 1995e34 (View Profile)

Posted on 12/5/2008 11:51:16 AM | reply to this comment | Votes: 0   

enthusiastx11

answer to your STUPID, UNPRINCIPLED question:

because this is AMERICA, NOT VENEZUELA.

happy to buy you a one-way ticket to caracas. just let me know where to send so we can be rid of you.

— enthusiastx11 (View Profile)

Posted on 12/7/2008 11:56:58 PM | reply to this comment | Votes: 0   

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