Auto-industry in America

[Nameless]

You hear about the need for loans and bailouts of the big three auto-industry in America left and right these days. It is all over the news, 25 billion dollar loans to start with, etc. etc.

I know this practical reformist proposal I am about to detail is not going to fly in America's perverse climate, but what would be the economic feasibility of it? Yes, I know it is not revolutionary.

The execs @ Ford, Chrysler and GM are far from starving, I am sure. They have their personal wealth locked up, their yachts packed and loaded, etc. Could the govt tell them to take a hike and seize all of their corporate assets, design specifications, patents, etc? Inject a bailout for the working people and retirees to keep them afloat while sending the overlords packing.

Dissolve the big three and create one nationalized auto industry in combination with a Manhattan type project for fuel efficiency and alternative energy. It is very important that they seize patents related to technology and design, for I am sure the big 3 are sitting on shitloads of efficient patents that threaten would threaten their monopolies.

I know this is far from realistic in America, but is it practical? America is so caught up with property rights... the thought of seizing factories and patents would probably send shivers throughout the spine of wealthy industrialists and bankers everywhere. Capital flight? Republicans would seize upon it hardcore and work to fight this outrageous THEFT and opposition to the providers of jobs and advancement everywhere! How dare someone question the corporate elites and not realize they are the economic engine providing advancement, jobs, livelihoods, etc... RAWR.

Let them continue running their companies into the ground with more pandering to Americans love of big vehicles, objections to fuel overhaul standards, etc. I know those things are probably less effective now in the current climate, but it was their course of action for decades.

[Schrödinger's Cat]

It would be an interesting debate, I think. You'll have free market apologists calling for the bail out with no stipulations as an alternative.

[Guerrilla22]

Or nationalize each of the big three and let the workers run each factory via councils. The reason Detroit is in the situation it is in is because of poor management by the execs. The average worker could run any of those companies much more efficiently than the dumbasses currently calling the shots.

[Ultra-Violence]

Id support the nationalizing of the auto industry! but in amerikkka? not very likely my freind but i cant even BELIVE they wanna bail those fuckers out! like the 700Bill. one wasnt bad enough! Im sick and tired of all these cops giving me tickets so my money can go to those fuckers GM makes terrible cars anyways Japs and German make WAAAAAAAAAY better cars just and way more fuel effeicint anyways and Toyota has moved thier factories here probably goana move more but i feel for those Unemployed Detoit workers

[Nameless]

Of course I, and I hope everyone else on this site, would like to see the factories seized by the workers and run on a council system. But it is not going to happen anytime soon and I was trying to stick to a more practical (though hardly in America) reformist tactic. This is the politics forum afterall. ;)

Yeah, I would feel terrible for the unemployed workers. That is why I spoke of a bailout directly for the workers and retirees. I mean... the execs have plenty of wealth stashed away in their personal accounts and assets, I am sure. Too bad America is a country that CANNOT and will not tell them to go stick it. They won't starve if we do.

Japan... yeah, interesting comparison. While Toyota and Honda etc. are private companies, Japan has a very top-down imposed form of democratic socialism, right? More like corporatism or fascism with a human face. The government, corporations, and workers collude in a grand pact that keeps labor pacified, wages and benefits high and you work 400000000 hours a week. Even the white color labor force. Of course now this is breaking down as they seek cheaper labor in Korea, China and even the USA?? Lol.

Can anyone comment on Japans very protectionist and corporatist structure, particularly dealing with the auto industry? Would you prefer that to how it is in America? What would be the consequences in and out of America if we were to adopt such a platform of Govt-Management-Labor collusion? Maybe it is what we are heading to now?

[Guerrilla22]

There are numerous ignorant individuals out there who want to pin this on the fact that unions in Michigan are so strong, however this is not the case. The big three have had a way to circumvent organized labor via NAFTA since 94. Since that time they've managed to lose a significant share of the market. The problem lies with the people running these companies, which is why I'm against a bailout, because it will only keep them afloat temporarily. They'll continue to run their companies poorly and will be back asking for another government bailout.