Comments on: In Praise of the US Auto Industry

By: Peter Klein

Peter Klein — Mon, 01 Dec 2008 14:53:15 +0000

Thanks Ty. I should warn you, however, that I’ve gotten a series of harassing emails from this Mr. Jones, accusing me of ignorance, short-sightedness, and worst of all, “driving an import.” Oh, well, occupational hazard.

By: Ty Mackey

Ty Mackey — Fri, 28 Nov 2008 22:45:38 +0000

VJones– Your numbers assume that these 2.5 million people never work again. If they get other jobs at the same wage, they still pay the same taxes. Of course, if they make less at their new jobs, then they will pay less taxes…

Anyone who disagrees with me is a moron and possibly an unamerican tool as well.

By: V. Jones

V. Jones — Fri, 28 Nov 2008 16:51:21 +0000

Has anybody, I mean a single economist, actually run the numbers? They must not have because the case FOR an Auto bailout is east to ‘see’. An estimated 2.5 million people are involved. Estimate an ultraconservative average salary of $10 per hour; $20k per year; $1300 per year in taxes paid by each (single, 20k-5400std deduction-3400 personal exemption equals 11250 taxable and yields $1300 in taxes); yielding total federal revenues of $3.25 billion annually; $25 billion bailout would be paid for in federal revenues in 7.7 years. This is a return of over 9%. In this case it is ‘cheaper to keep her’. Anyone who argues otherwise is a moron! Drive your jap car to the unemployment office-idiots!

By: Michael Shettig

Michael Shettig — Wed, 26 Nov 2008 04:53:44 +0000

The big 3 are requesting a loan, not bailout. Let the government work with them to keep these jobs alive. GM has stated recently that they are working with their labor unions to reduce their hourly rate to be more in tune with the foreign competitors.
We need to keep jobs in America so that we have an economical base to purchase goods and services. Where do all of these people ( 3 million ) go to work if we let the big 3 fail?

By: more on the auto industry from peter klein « orgtheory.net

more on the auto industry from peter klein « orgtheory.net — Wed, 26 Nov 2008 04:34:43 +0000

[...] a comment » Our evil twin, Organizations and Markets, has a post on the auto industry that resonates with what I wrote on Monday: The proposed bailout of GM, Ford, and Chrysler [...]

By: Tony

Tony — Tue, 25 Nov 2008 22:31:12 +0000

Very interesting post. Puts into concrete words a sliver of a thought that was bouncing through my head these last several weeks. The big three don’t make horrendous cars, but taking away the natural incentive to compete with the foreign companies isn’t going to improve the quality of their products.

By: Ajax Girl » Blog Archive » QUOTE: The proposed bailout of GM, Ford, and Chrysler

Tue, 25 Nov 2008 15:46:26 +0000

[...] —Peter Klein (via Andrew Sullivan) [...]

By: Chad Lindstrom

Chad Lindstrom — Tue, 25 Nov 2008 15:30:52 +0000

Protectionism… this brings up an excellent point.

The US has a history of retaliating to those that offer any apparent or assumed aid that would prove helpful and thus create an unfair competitive advantage.

Example? Softwood Lumber between US and Canada. There was much debate over what or if Canada was subsidizing it’s (already profitable) lumber mills. Making it difficult for the US mills to produce or sell at the same rate.

Sometimes it just comes down to better business planning and resource management (and often a better product). And if you don’t have that, you lose to your competitor. Which is precisely what we’ve seen with GM vs Toyota.

If the big 3 are that poor in business planning and execution, then let them stand (or fall) on their own two feet. Otherwise, risk the wrath of global tariffs when GM|Chrysler|Ford exports their product.

By: James

James — Tue, 25 Nov 2008 15:07:36 +0000

You must hate America :)

By: Fluid Imagination » Bailout Who For What Again?

Fluid Imagination » Bailout Who For What Again? — Tue, 25 Nov 2008 14:51:51 +0000

[...] Organization & Market’s In Praise of the US Auto Industry: “The proposed bailout of GM, Ford, and Chrysler overlooks an important fact. The US has one [...]