Bailing out the auto industry is even more ludicrous that the waste of money spent on the “stimulus package”, which did nothing.

Let me tell you why.

A small part of the auto industry’s problems are from failing to plan ahead for the market changes due to the last fuel price increase and the downturn in the economy, which were both inevitable. However, these oversights are pretty much meaningless when put in the light of the major issue facing the U.S. auto industry which is simply that they have become virtually uncompetitive in the world economy in which we live and are destined to go the way of the dinosaur---to the grave.

India is coming out with an $1800 car and China will be following soon I am sure with something in line with that price. The United States spends almost triple that on each car in just the benefit costs for the retired auto workers and much more on the actual workers building the cars today. With the executive pays and taxes as they are on top of that, our hopes of producing a competitive car in the near future is zero, and hence, no more U.S. auto industry. Sure, our cars might be better but not enough in a severe long term economic downturn as we are now in to allow them to compete and survive.

Giving the auto industry money is throwing good money after bad as their fate is sealed. All it would accomplish is to delay the inevitable a few months as the economy falters further. If we were to have any remote hope of such a “bailout” working, we would have to immediately impose an embargo on foreign autos, place massive tariffs on any foreign company producing autos here with foreign parts, and dismantle the United Auto Workers union immediately. I do not see this mentioned and I can imagine it happening--- yet.

What will happen is that over 20 or so years of this depression we will see the auto industry and the UAW disappear along with benefits for most workers and wages will fall to become in line with the rest of the producing nations of the world so as to once again put us in the position to compete in the world economy. Perhaps then a new auto industry will appear. How can you argue with obvious common sense? Oh, you could listen to the idiots on Wall Street and our politicians who got us into this mess from their short-sighted ignorance I suppose. That certainly makes sense!

Your friend Coop