Billions for Bailouts: A Better Plan

We’ve all heard of the pending doom of the “Big 3” – Ford, Chevy and Chrysler.  Apparently, they won’t make it without federal assistance.  The Feds have wisely stated that no money will come without a viable business plan which no company has been able to produce thus far.

Here’s what I think needs to happen:

The government should bailout the Big 3, but only with the stipulation that a viable business plan is presented in a timely manner.  Furthermore, the government should install some efficiency experts or something to make sure the business is run efficiently.  If the government is going to give massive handouts, then they should be largely involved in the day-to-day operations of these businesses.  If left to their own means when given a bailout, chances are they’ll be back for more, because their business will continue to be run the same as before.  Upper-level management needs to be overhauled or replaced, mission directives need to be re-shaped and lower-level operations need to be strictly monitored.

And if the Big 3 cannot come up with adequate plans, then the companies should be left to collapse.  If these companies cannot compete in a global market (where more efficient cars are being made to better specifications for less money) – even with the help of a bailout – then the company does not deserve to survive.

Before many of you decry the proposal of letting a huge American business collapse, think about this.  The government could put their billions of dollars towards other, more meaningful expenditures.  Try this one on for size…  With unemployment already at near-record levels, the stage is primed for re-education.  If the government were to work closely with colleges and universities then their billions of dollars could be used to subsidize re-education efforts.

This country is grossly under-educated and already lags behind the rest of the world in science and technology.  If the unemployed were to return to school for a reasonable price and after several years could graduate with a degree or certificate that could advance them AND our country everyone would be better off!

Let’s look at the automotive industry; to buy a full-size pickup these days from a domestic company, you’re talking about more than $35k and these trucks won’t last as long as a Toyota!  With a bit of education, this country could undergo a paradigm shift and think of what kind of cars we could be producing domestically then!  American vehicles have always been the same; we’ve never thought outside of the box.  This can be said about most of our industry.  It’s the same as it was 30 years ago.  And using the excuse “if it ain’t broke, don’t fix it” doesn’t work anymore.  The rest of the world has been busy thinking outside of the box and has subsequently passed us by.

Banking, airlines and automobiles are only the tip of the iceberg.  While politicians and conservative media talkshow hosts are busy complaining about our jobs being outsourced overseas, firms overseas are using our technology and workforce to produce a better product.  We need to be ahead of the game, not struggling for second-place (or third, or fourth, or fifth…)

Instead of trying to produce the same car or pickup truck that’s been made for 50 years, scrap the plans and develop a cheaper, more efficient, better product that the market wants TOMORROW – not what it wants TODAY.

Instead of trying to develop oil and gas fields like what’s been done for the past 100 years and can no longer be done sustainably, develop energy production techniques that utilize sustainable, renewable and domestic resources such as wind, solar and tidal energy.  Countries around the world are already doing this while we continue to beat a dying horse (oil production in international conflict zones).

Instead of trying to support 50 some odd airlines in this country, let them die off and reorganize themselves into regional carriers of one or two larger companies.  Meanwhile develop alternative means of transportation such as rail and bus.  This would not create a so-called monopoly, because with airlines currently serving their own hubs, you already DO NOT HAVE A CHOICE of carrier to most destinations.  If you want to fly to Alaska, you’re going to be on Alaska Airlines.  Hawaii: Hawaiian Airlines.  Salt Lake City or Atlanta: Delta.  Minneapolis: Northwest.  Phoenix: US Airways.  San Francisco: United.  Newark: Continental.  Denver: Frontier.  Sure there are other options, but they’re ridiculously expensive.  With fewer major carriers, there would be fewer wasted flights and ticket prices would subsequently drop.  Why send 100 flights per day between LA and New York from 20 different carriers if they’re all only partially full, tickets are expensive and the carrier is risking your safety in exchange for ticket price?  Why not send 50 flights per day from two or three carriers that are all full?

The list goes on and on.

Final words: bail these ailing companies out as part of a one-time deal, but demand that serious changes are to be expected.  If the companies fail, so be it.  Spend federal dollars on education efforts to boost this countries scientific and technological foundation in an attempt to develop efficiency in domestic products.