Should Congress Get Involved With Stimulating Auto Sales?

Ralph Paglia
This is one of those subjects that has lately seen quite a few people making about faces... Many of the hard-core Republican dealers that i know are actively campaigning to have people contact their congressmen and senators to express support for an automotive stimulus package. Personally, Like the idea a lot and I think it makes a lot more sense than giving billions to bankers and then hoping they will lend it out to stimulate economic activity. But, I am also struck by the irony of successful business men who have always been for lower taxes, and less government spending, now getting involved in campaigns to encourage our Federal government to go deeper into the hole of runaway budget deficits to stimulate car buying... I like the idea, but as a closet Libertarian, it makes me feel almost hypocritical... What's your take?
Paul Rushing
It is not the governments place to protect business even though that appears to be their role in today's political environment. Helping keep it's citizens in their homes is a big difference from getting them to buy new wheels. It would only be a band aid to the bigger problems on the OEM level. Like over saturation of the market with multiple dealer points with redundant products wearing different badges. Multiple dealer closing with a big three or two going away will not be bad for the industry and it will cause hardships in the lives of many in the near term but overall it will make for a stronger industry. I watched the same thing happen in the Manufactured home industry. This is almost a mirror.
Jared Hamilton
This is an extremely complicated issue. Im a believer in our capital markets, the strong survive and the weak die off making room for up and comers. However, the issue becomes complicated when you start looking at the peripherals. If our domestic automakers went away, what would we do in the even of another world war? In the past, the automakers supported war efforts by converting factories to build planes, tanks etc... we couldn't outsource that to china. Also, if left alone for the market to correct itself it could literally destroy what is left of our economy. Our industry is responsible for over 20% of retail sales. The loss in jobs & tax revenue may very well cost more than the bailout. I think it comes down to viability. The OEMs are bloated and inefficient, they need to be fixed. Regardless of bailout or not, there will be pain in our industry and this must be corrected (with or without the governments help.) Dealerships are going to close; the industry is in need of reinventing itself.
William Bryant
I just read an interesting article on this that talks about the tax payer (you and I). ... -taxpayer/
John Avery
I think that the government is going to have to do something because there are something like 2.7million jobs linked to the survival of the domestic automakers. The big question is if the govenment throws money at the manufacturers, is that going to make the general public want to purchase a vehicle? I don't think it will. How about using the money to match the manufacturers incentives, essentially doubling the incentives that are available. This will entice the public to make a purchase that they were putting off to a later point. More sales means more money in the dealers pockets and more money for the manufacturer and the purchaser is happy. It could even be labeled as a loan as the current money is intended and they will pay the money back when they are again solvent. I know that the biggest comment against this will be that it will hurt resale values, but what do you think the resale values will be if these companies go out of business all together? They could even stipulate that it will be avai
Larry Schlagheck
I agree with the majority of postings that this is not government's role. I didn't agree with the financial bailout for this same reason, although I am finding it more difficult to say "no" to the auto bailout as I live in the Detroit area. It's tough to say "no" when so many people I know have been put out of work. However, I must stay in line with my philosophical self and remain consistent. If government wants to help the auto industry, level the global playing field. I'm not talking about attempting to force China and Mexico to pay their line workers $50+/hour, but the trade and tarriff laws must revisited and equitable. In then end, no one even knows if the billions of dollars being asked for will fix anything. It may just be a band-aid. I do find it interesting however, that many Governors and Senetors from the south are saying no way to the auto bailout when it was their states that received millions of US dollars in grants and tax subsidies to get foreign nameplates to build pl

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