It’s not that we need to bailout the auto industry, it’s that we need to secure the biggest sector of the manufacturing division. How does the opposition plan on employing all the people who lose their job when the American auto industry goes the way of the pet rock? What about all the diners, uniform suppliers, parts suppliers, and other businesses that are needed and supported by the auto industry? How do you save the towns that will be totally destroyed by the closing of their local auto plant?
Everyone can say no so easily, but no one can give plans on how to deal with the results of that no.
That’s why I have been behind Pelosi’s plan. Do I really want to see us throw $25 billion at the auto industry, when we don’t even have things like universal healthcare? Of course not, but I also realize we need the auto industry. If they are to get the money then they get it with strong conditions tied to it. Restructure the auto industry. Make them more efficient. Force them to produce cars that compete with the foreign market and help our environment.
Here are some interesting things I have heard on various shows over the past few days.
- Toyota was looking to open a plant up in Alabama. Toyota does have an aptitude/intelligence test required to work for them. They could not find enough employees that could pass the test. In the end they ended up moving to Canada, which turned out to be much better. They found the workers and were even able to pay them more, because Toyota did not have to pay for health insurance.
- Japanese automakers have a policy for CEO pay. The CEO can not make more than 10x the lowest paid employee. If the lower person gets paid $20,000 a year, that means the CEO can only make $200,000 a year.
- Japanese automakers don’t have unions. Their employees also don’t want unions, because their employer treats them so well.
(As to the issue of an intelligence test and the employees being happy, I can attest to that. I know a few people who work for Toyota and they have all verified this to me.)
So we see models there that are working out very well for other countries. Why don’t we try and mimic them? The health care issue alone should be more than enough reason. Health insurance is the highest rising cost associated with employment. If employers didn’t have to worry about that, then the money would go back to the worker, which would then end up back in the economy. Sometimes the answer is so simple.
Think of how that would also save companies when it comes to employees being off sick. A healthy workforce equates to a stronger workforce. Productivity goes up and production costs go down.
And how much is enough? How much money does one man need to make? We need to seriously limit bonuses and salaries for big wigs. CEO pay has skyrocketed while employee compensation has remained stagnant over the past 30 years. It should come as no surprise that this has something to do with our failing economy and middle class. It’s time to tell these companies that their CEO pay will be limited, and to help make sure they stay here in the U.S., we also put legislation in making it hard for them to leave the country.
If we don’t take the right course of action here, then America as we know it is gone. I hate to sound all “gloom and doom”, but that is the simple fact. We need a well thought out plan for the auto makers tied with a radical restructuring, similar to that of what the Japanese are doing. If our leaders are at a loss, then I highly suggest they check out the movie Gung Ho.