12 November 2008

Michigan's Auto Industry Gets Nationalized

The New Model From Detroit

With the collapse of General Motors, the $50B Auto Industry Bailout is in the works. From the Detroit Free Press:
GM said it was focused on cutting costs and seeking aid. GM, Ford Motor Co., Chrysler LLC and the UAW have asked for $50 billion in aid for the industry -- $25 billion for general business use and $25 billion to put toward the UAW's trust fund for retiree health care.

"It is our view that providing emergency assistance to this uniquely important industry, which is struggling to meet the challenge of a severe financial crisis that has spread far beyond Wall Street, is consistent with the authority granted to you," Michigan's lawmakers said.

While Congress is throwing around billions to unprofitable insurance companies, what's another 50? Having grown up in Michigan, you pretty much understand that the only reason you aren't living in frozen wasteland is because of the auto industry. Japanese cars were looked upon with scorn, everyone's Dad worked for one of the big three, and tough times in the car business meant crime and poverty went through the roof in cities like Flint. Hell, I even worked a summer in college inspecting intake manifolds for the Jeep Cherokee at an assembly plant. Now, we are all eating the government cheese. How shameful.