Thursday, December 18, 2008

I don't remember where I got this picture. I was cleaning up my computer and found it.

I'm not fully decided when it comes to government support for the auto industry. There are certainly tonnes of jobs connected to the industry in Ontario. If the 'Detroit 3' get support from the USA government, we are basically forced to up here as well. If we don't, we fear that they'll shut down the Canadian plants. Still, does the industry deserve a penny of government support? I say no. It is their fault that they are in the position that they are. The executives who run the companies have taken them in certain directions, which at the time may have looked good. As it turns out, they made some serious errors of judgement. As a result, they shouldn't be getting bonuses, or multi-million dollar salaries. They should be changing their tune, or shown the door. Then there is the unions. Sure, they're not responsible for the design of the product that is being sold, but they have some responsibility as well, having constantly sought more and more compensation and benefits. I'm all for fair wages, but there is no way that a line worker should be making more per hour than a skilled tradesman, a professional engineer, a nurse, a Youth Pastor, or whoever. They should make enough to support their family, which is certainly more than minimum wage, but $30 per hour, with awesome pensions?? Come on.

In our capitalist economy, should these companies not be left to fend for themselves, and find their own way? Trim some fat, eliminate a few lines of cars/trucks/SUV's, and focus on fewer and better product lines. The government, for the most part, cannot determine the size of the auto market. What I mean is that people will continue buying cars based on their economic position and their needs/wants. Whether GM survives or not doesn't change that. (Although there are some brand loyalists who will never buy anything other than a GM product). So, if GM or Ford close their doors, it just means that Chrysler, or Honda, or Toyota, or VW, or .... will gain a few new customers. Supply and demand. Am I stating the obvious, or oversimplifying?


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