US Automobile Industry set to Crash? Again?

Following the recent bailout bill it appears that skepticists which had disagreed with the bill’s ability to truly address the financial crisis have come true. As we are now seeing, Paulson who very strongly defended the bill saying that it will save the crisis has now recently admitted ” the funds ‘were not a panace’ to cure the country’s economic problems.” (Read that Here)

His full quote:
“The purpose of the financial rescue legislation was to stabilize our financial system and to strengthen it,” he told the financial services committee of the US House of Representatives on Tuesday…
“It is not a panacea for all our economic difficulties.”

So as usual rhetoric in this country goes, first you defend and present the situation as if there was no other choice but to give up $700 billion dollars. I recall Obama and McCain fans saying- WE HAVE NO CHOICE! THE WORLD MARKET WILL CRASH!

And now elements of the truth leak out slowly and indirectly, that perhaps that wasn’t really the solution?

Just yesterday, it was official that Japan’s economy is now in a recession…
“The world’s second-biggest economy had previous shrunk by 0.9% in the April to June quarter”
Even more sad:
“Japan’s economy had experienced its longest period of economic growth since World War II until the sub-prime crisis started a year ago.”

That’s a coincidence, WWII, the last time America fought a just war that gave us our credibility and won us global prestige….

As for the car crisis–
The last time in America a huge conglomerate like General Motors sank, we had the GM crisis that affected Flint Michigan, which also caused a sit down strike of residents and employees of GM during that time to create the labor union United Automobile Workers. However, in the 21st century, the power of labor unions no longer exists as they have been bought out by huge corporations or been taken over by conservatives that do not believe union workers should be treated fairly.

The bigger question is, how will Americans organize to fight the corporations that are stripping Americans of our money now? Will we organize together considering that the very idea of gathering has become an anathema in our society? If Americans do not represent themselves, than no one will. It is a shame to think that a country who is considered to be advanced in terms of legal ability and law-making, has cheated its own citizens of the their own rights, such as the right to their own money. The government reaps us with high taxes of 20% and then basically repackages it to corporations like Goldman Sachs on the basis that it somehow helps the poor consumer who just had to give that all up. There is no logic to this.


~ by Curry on November 19, 2008.

One Response to “US Automobile Industry set to Crash? Again?”

  1. what is the point of propping up an industry if people don’t want it? even if the governemnt allows these cars to be produced what is the point if nobody WANTS to buy the cars!??!?!

    we have the same illogical thinking in Australia, the motor industry is simply too top-heavy!

    oh, also, do you deluded Americans really believe that other peoples think your “a country who is considered to be advanced in terms of legal ability and law-making”??

    either way the fact that “the power of labor unions no longer exists” is a global shame, people are scared of themselves! if only they did the industrial revolution in history class they would recognise the need for unions and the ousting of the laissez fair attitudes of government.

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