Susuto

A view from a 17 year old, if you will: The big three aren’t doing so hot. If they don’t get any money, they will crash and burn. So give them money, and they won’t crash, right? Wrong. The problem is that even with the money, they can’t change the way they operate, in part because of the UAW. So what’s going to happen? Instead of going out of business very soon, they will just go out of business soon. They simply can’t compete with Toyota and others.

Here’s the other problem with giving the big three money. The big three have to pay $2000 per car more than everyone else because of labor agreements. This means that for every car made, big three employees altogether get paid $2000 more than workers at other car companies. The big three are dying because they can’t afford that extra $2000. Which means that the money we give them, the billions and billions, will essentially go DIRECTLY to paying that extra $2000 per car that is killing the big three. Think of my dad. He doesn’t work in the auto industry, but he also can lose his job just as much as anyone else can lose their job. Why does my dad have to pay, in tax money, special employee benefits that the big three employees get? As you said, remember the people. The entire world’s economy is doing poorly right now. Your dad isn’t alone. Don’t make other people’s dads and moms pay just to save car companies.

So what happens if you don’t give them money? If you’re lucky, they restructure and become profitable, renegotiating their agreements with the UAW. All is merry, end of story. More likely? They crash. They burn. But guess what, people still bought Fords and Chryslers and GMs. So, someone will have to show up to fill in the gap. Maybe it will be Toyota, maybe it will be Tesla, maybe it will be a company that doesn’t exist yet and CAN’T exist UNTIL we let the big three go out. And they will have to build factories. And they will have to hire people. And they will hopefully be well managed and profitable, which means that your dad won’t make as much as he used to, but he will have a job in a company that will exist 10 years later.

My heart goes out to you. The process of the big three going out, which will most likely happen (now if we don’t give them money, soon anyway if we do), will suck. It will take several years for the economy in Detroit to reestablish itself and for more employment to spring up. But believe me, 10 years down the line, it’ll be better for my dad, your dad, and you if we don’t give them a bailout.