Were The Bailout Critics Wrong? Figures Indicate The Auto Industry Is Now Fueling The Economic Recovery

Agent009 submitted on 5/14/2012 Official Bell & Ross Timestamp: 2:09:38 PM

7 user comments | Views : 3,568 | Category: Misc News | Source: | SOURCE: www.bloomberg.com

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Car sales that are running at the fastest pace in four years are poised to reverberate through the world’s largest economy as a spillover into production, profits and jobs for Americans may be starting.

Auto purchases have exceeded a 14 million annual rate in each month this year, the strongest performance since early 2008, according to Ward’s Automotive Group. Government data show motor-vehicle output contributed half of the first quarter’s 2.2 percent economic growth.

 



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Were The Bailout Critics Wrong? Figures Indicate The Auto Industry Is Now Fueling The Economic Recovery

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Agent009

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wcbrown

DUH! Yes, they were! It's beyond me how many people had/have NO CLUE how much the auto industry (manufacturing, sales, auto product production) influences and supports our economy. The auto industry has long been an 'snapshot' of how our economy is doing. I'm just glad the U.S. auto industry is coming back!!:-)

— wcbrown (View Profile)

Posted on 5/14/2012 3:28:11 PM | reply to this comment | Votes: 1   

cdoke

I often wonder if people who argue based on assessments of economic impacts for the auto industry would make the same arguement for unpopular industries such as the oil industry. The article states that in 2007 to auto industry contributed 2.9% of GDP, in the same year the oil industry contributed 7.5% of GDP (and directly employed ~ 2 million people and had induced/indirect employment of ~9 million people) [Price Waterhouse Coopers Study, Sept 2009]

— cdoke (View Profile)

Posted on 5/15/2012 9:56:44 AM | | Votes: 3   

Steve

Well, of course the oven (AKA "the economy") gets hotter when you throw billions and billions of *borrowed* dollar bills in there for fuel. I don't think anyone ever questioned if that would happen.

I think the questions on many tax-payer's minds are along the lines of...
- Is burning currency as fuel a good idea?
- Is it prudent to throw billions of dollars at companies who have proven they aren't sustainably profitable?
- How many times do we need to bail out loser mega-corporations before they're "fixed" for good?
- With a national debt in the trillions of dollars, and annual deficit spending that gets us deeper into debt each year by design, and governments that continue to borrow more and more money on our behalf (sometimes throwing it at mega-corporations who can't make a profit), how long will it be until this deck of cards collapses and we're another Greece?

Buy hey, how about that economy? No problems! Time to pat ourselves on our backs and hand out some more bonuses (using tax-payer's money). Damn the torpedoes, full steam ahead!!!

— Steve (View Profile)

Posted on 5/14/2012 4:42:06 PM | reply to this comment | Votes: 3   

rockreid

this article comes the closest to the apology I've been calling for form the authors of this site. A few years ago, it was deemed impossible that government could ever step in and help the situation. Now here we are inside of Obama's first term as President and already the US automakers are highly profitable again and paying back the taxpayer loans. The loss of real auto manufacturing and related jobs would have been the nail in the coffin of the US, and we must thank those in government like Obama who helped get this industry back on track.A complete Mea Culpa from the authors and some contributors here I've never been expecting. It's just not something that exists in the Conservative mindset (aka attack attack attack). But the title of this very article comes as close as I think we'll ever get to one. And for that, I am grateful.

— rockreid (View Profile)

Posted on 5/14/2012 7:12:40 PM | reply to this comment | Votes: -3   

valhallakey

Although I see Steve's point above, in this case it was worth it due to the fact we don't have much large scale manufacturing expertise left in this country. Now the bank bailout on the other hand... should have let them go under and the banks that did not get into the speculative frenzy could have stepped in.

— valhallakey (View Profile)

Posted on 5/15/2012 1:09:43 AM | reply to this comment | Votes: 0   

Steve

Re: "...we don't have much large scale manufacturing expertise left in this country..."

Oh, I don't know. The US seems to be doing okay in mining and making metals, and in pharmaceuticals. Ditto with industry leaders like Boeing. And General Electric still seems to be viable and not needing tax-payer bail-outs.

I would argue that the issue with GM and Chrysler is not in their "large scale manufacturing expertise," or lack of it, but rather that they are struggling to compete in designing products that American and world consumers *desire*. Another viable argument is that GM and Chrysler are poorly managed companies, whereas Ford, whose products are not dramatically different, continued to remain profitable and did not need a massive bail-out to stay alive.

Whatever "the answer" is, I don't think the issue of having sufficient "large scale manufacturing expertise" plays into this at all.

— Steve (View Profile)

Posted on 5/15/2012 8:14:38 AM | | Votes: 2   

heidijordan


yeah it is true most of us can save money on our car insurance by making few simple changes look online for "Clearance Auto" you will be amazed. In this stupid economy we all need to find ways to save. With high gas prices where else can you save for travelling?

— heidijordan (View Profile)

Posted on 5/15/2012 3:24:36 AM | reply to this comment | Votes: 1   

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