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Is Detroit worth saving?

It is, but it will come at a steep price.

By Charles Sercombe

“Is Detroit worth saving?”

That’s the headline in an article written by Joseph Romm in today’s (Nov. 12) salon.com.

Check it out because Romm makes some compelling points on why if the federal government agrees to “bail out” the U.S. auto industry, there ought to be plenty of strings attached.

Why?

Romm says that in the past, despite it being in the best interest of Chrysler, Ford and GM, Detroit’s once mighty Big 3 walked away from developing electric hybrid cars as soon as the Bush administration came into power.

Instead, they concentrated on producing gas-guzzling pick-ups and SUVs. And instead of heeding the desire of Congress for better fuel efficiency, GM spent millions to lobby against increasing fuel standards. In short, now that the Big 3 are facing bankruptcy, they are getting what’s coming to them.

But despite their faults, greed and extremely poor long-range planning, we can’t allow the Big 3 to go out of business.

It would be catastrophic, and would put the US economy in an economic tailspin from which we may never recover. Millions of people here and across the nation would lose their jobs and have little prospect of ever replacing lost income.

This would have a ripple effect. Many are calling it an economic tsunami – you know, a tidal wave we haven’t seen the likes of.

Already, the drop in car sales, home foreclosures, bank failings, job loss and sharp drop-off of consumer spending has eerie parallels to the events leading up to the Great Depression of the 1930s.

President Jimmy Carter paid a stiff price when he once said that the American people, in the mid to late 1970s were suffering from malaise. People jumped on Carter for daring to point out the country was in a mental funk. Carter’s critics said he lacked leadership and was only feeding into the gloominess of the time.

It was no surprise to me when Reagan defeated Carter. People were suckers for a guy who could spin fantasy stories of hard-working people pulling up their boot straps and becoming successes – even when Reagan spent America into massive debt and began the process to de-regulate everything to the point where the banking institutions and Wall Street firms need bailouts.

The US auto industry needs to be saved, but it’s going to take the stern, supervising eye of the Federal government to make sure it doesn’t continue to destroy itself. And one more thing: as bad as the auto industry has acted, consumers are to blame as well.

While the auto industry focused on producing more and more gas-guzzlers, guess what? We were buying them up – the bigger and more wasteful the better. Who is to blame? Gasoline was relatively cheap and, heck, we’re Americans and we deserve to consume as much as we want, anytime we want.

Few people cared about the fact that gasoline is a limited resource and one controlled by people in far-away lands who really don’t like us.

“Is Detroit worth saving?”

I think so, but we, as a country and as a people, need to do some deep soul-searching on how we want to live and work in this new millennium.

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Detroit bailout

Posted by angry but resigned in colorado at Nov 16, 2008 01:31 PM
I am so in the crosshairs of anger and resignment about the whole "bailout' thing. I get it, that we need to save ourselves - well, I kind of get it, I don't know that I will ever trust what the press and govt. tells us again - but I am so not okay knowing that I am going to pay to help "Joe" or "Jane" stay in their $300,000.00 home while I live in my very modest 890 square foot home that I purchased KNOWING it was within my very limited (I am a public school teacher) means. Maybe if I could switch houses with "Joe" or "Jane" I would feel better about paying my mortgage and part of theirs. I am so afraid that "Joe" and "Jane" won't really learn from this and that I will never be able to better my own situation. I know that I sound old and cranky, and in some ways I am...I started working to pay for the things I wanted and needed when I was 12 years old - and I don't mind that. It was my choice. I would not live my life another way. I actually like working and the freedom / independence being able to take care of my responsibilities it allows me. And I am proud of myself for paying off my debts - even the one that bailed me out(thanks to my big sister when my car engine blew up!). And I can say that I have learned the importance of responsibility and living within my means - but I cannot say that about the people who I will be paying to bail out. And that makes me cranky.

I agree

Posted by Mel in Hawaii at Nov 18, 2008 04:41 PM
You are not old and cranky. I am only thirty years old and feeling the same pain you are. I have not even obtained a house yet for myself! Yet I have to help pay for everyone elses homes and mistakes! I have NO pity for them!!!

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