President Bush and the US government is giving loans of $17.4 billion dollars to GM and Chrysler until March 31, after much heated discussion and arguments about loans for automakers in Congress. The money will come out of the $700 billion dollars previously earmarked for financial recovery, which sits better in the minds of some people who did not want a separate funding put forth.
The problem seems to be upsetting many people because the whole bailout theme is a lot like flushing a ton of money down an endless drain. Now other industries are coming forward, and the states are in need of funding, in an unending chain of hands out for money.
Whatever happened to fiscal responsibility and accountability, people are asking? And why, in a nation proud of independence, individual ability for success, and rights to pursue private enterprise, is the government stepping in and virtually nationalizing so many industries. The banking and financial industry is now under government control, and the automakers will hand over large shares of their companies as security for these loans. If the loans for automakers are not repaid, the government will own the car manufacturers!
Yes, the government has a duty to work for the public good, and losing millions of auto related jobs and businesses would indeed be a real and hard disaster. But, there is a fine line between a government controlled state, or beginnings of government takeovers, and free enterprise. It is a fragile line that can be broken and not repaired. Where does this action put the US?
Another thing that bothers the public is the total inability of the Congress to function amidst discord, vacations, pay raises and general lack of cooperation amongst themselves. This causes a lack of public confidence, and the economy in general begins a snowball of lack of confidence, which in turn makes the economic crisis worsen. When people cannot pay their bills, are losing homes, and businesses, and it is a result of Washington policies and gridlock, the economy will shrink and fold up. Where are the homeless going, and who will feed them and take care of them? Why are they looking, as the large companies are, to the government for care?
But, it seems that the people have voted at least by half to choose government assistance programs under the new Obama administration promises for a change on the way. Traditional big government programs are looming on the horizon, but where will the money to pay for all these programs come from?
Why are there not encouragements from the government and incentives from the companies to expand business and increase sales? Why do the people need to support loans for automakers and business that cannot work out a balance sheet and plan for success in advance? These same businesses give out millions in bonuses to officials, who have obviously failed in making the companies thrive, and this same government votes itself pay raises continually, while the average “Joe” is losing both incentive and property. One wonders where this stumbling effort will all go???
For more information on loans for automakers, visit http://www.loansforautomakers.com.