Automakers Blew It

Actually, it was not just the automakers. It was an entire team from various industries, including a big, bad government.

This is pretty scary stuff. The Big 3 U.S. based automakers are all on the edge of bankruptcy, with many experts conceding that if they go belly up the economy will go into a steeper tailspin. Not only does this affect the workers who build the cars, but do you realize how many companies there are that owe their lives to the fact that they supply to those Big 3? How many workers are actually affected.

Then those workers will spend less money, which will affect their local retail, etc, etc, etc.

And what actually started this mess? I am no economic expert, but it seems to me that dumb government policies and greed, both in regards to loans to home owners who really could not afford homes in the first place. Add to that the fact that the Big 3 seemed to concentrate on BIG American cars, which use LOTS of gas, and what a recipe for disaster.

Another thing that bugs me if this insistence that our GDP has to keep climbing. We want people to spend and spend and spend. It is an unrealistic viewpoint, in my opinion. We keep buying stuff. Lots of stuff. Not just basic food and clothing. A new type of big screen TV comes out and we have to have it, cause our piddly little 32 inch is too small. We need monster homes with rooms that rarely get used. Multiple cars in the driveway that go 60 km per hour or less on 100 km per hour highways during rush hour. $400+ video game machines that keep us inside too much. Look around your place at all the stuff. If you look carefully enough, some of you will find some stuff that you forgot that you had.

What is that saying? “The one with the most toys wins.”

If you are buying those toys with hard earned cash, then I applaud you. You win. However, if you are using credit to buy toys, shame on you. Live without, and buy cash. You will be better off in the long run.

I have always thought that unbridled consumerism is a monster that would eventually kill us.

What about you?

One Comment

  1. Adrian Wong says:

    Have a read at this article. Not directly about the automakers but really how this country may have contributed to its own demise. A bigger picture look if you like. We may not see the whole fallout yet. I found it very interesting. Not just private sector that had a hand in this but also government’s hands are dirty too. It’s tough being government sometimes. Both hounds are after you. The general public and the private institutions.

    http://www.globeinvestor.com/servlet/story/RTGAM.20081212.wmortgage13/GIStory/

    [GR responds. Yes, very interesting article. We sometimes think we are helping by making it easier, but in the long run …]

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