The World Reacts To Obama
16 years ago
Friday, December 5, 2008
Am I Right? tackles the auto bailout
Am I Right host Nolan Finley and Detroit Free Press deputy editorial page editor Stephen Henderson discuss the auto bailout hearings in Congress, the Blue Cross bill in Lansing and Christine Beatty's plea agreement.
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2 comments:
The Detroit automakers will have succeeded in spending over $6 BILLION this year alone on branding and marketing that nobody cared about...and we think their problem is that they can't BUILD cars? My worst fear is that they get the bailout cash, actually use it to do good things within the companies, and then consumers remain unconvinced to buy. I've written about it today at DIM BULB: http://tinyurl.com/68bopd.
It's not the marketing that has driven the automakers into bankruptcy. Marketing is oftentimes needed to attract attention and get business. No marketing means a lot less customers.
The true problem with the automakers has been the burden of the federal, state, and local governments' fiscal and monetary policies. The Federal Reserve's massive monetary inflation that started in the 1980s created the huge trade deficit we have today, making the Big Three uncompetitive. Moreover, high business and personal taxes on all levels (like the fact that the USA has the highest corporate taxes in the 1st world) has reduced the competitiveness of the Big Three auto companies.
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