The United States government has already shelled out massive cash advance loans to players in the U.S. auto industry to keep them solvent. And after gorging themselves, GM and Chrysler are asking for seconds. Will President Obama continue to fatten up the insatiable on the taxpayers’ money? Surely someone else needs to take the reins of the auto industry if the problems are to be fixed, yes?

That isn’t going to happen yet. John Hughes reports for Bloomberg that President Obama decided not to name a “car czar.” What will happen for now is that Treasury Secretary Timothy Geithner and White House economic adviser Lawrence Summers will head a task force on how to fix the industry. Early word on Geithner – tax snafu aside – has not been positive, so I’m not sure whether this decision fills me with confidence.

Pressure to name a “main man”

According to Hughes, President Obama was “under pressure to say who would handle the issue before tomorrow, when General Motors Corp. and Chrysler LLC must give progress reports on plans to restructure as a condition of $17.4 billion in U.S. Treasury loans.” One thing that’s positive: those two diseased behemoths aren’t dictating policy here.

Geithner will be the next best thing, for now. It will be within his power to recall any monetary aid if the automakers fail to show they have a sound profit plan by March 31. That is without the expectation of further advances of cash to stimulate their bottom line.

Driving into the future without cash advance

Five Democrats in the Senate, including Michigan’s Debbie Stabenow, have urged the president to appoint a manufacturing expert to the auto industry oversight panel. The reasoning behind this, as Stabenow explained, is that “This advisory group provides a tremendous opportunity to bring together our country’s greatest manufacturing leaders to help our domestic automakers create the vehicles and technology of the future.”

Do the current auto industry leaders have the ability to drive the American automobile industry into the future? Most see them as the joyriders who ran the industry through the guard rail in the first place. They cry for cash advance loans now, and they still want more. Their history of unwise spending and production has created a huge mess. I say President Obama takes over, whether it’s through a “car czar” or some other means. The usual suspects should not run this asylum.

Related articles

• REPORT: Obama dropping “car czar” in favor of task force (autoblog.com)
• Obama drops plans to name a single car czar to oversee the restructuring of GM and Chrysler. (slate.com)

House Approves $14 Billion Bailout

Big 3 Auto Makers Bailout

The $14 billion bailout proposal was sent to the House of Representatives tonight in order for the House to cast its vote. The bill passed 237 to 170, but a majority of the support came from the Democrats.

Only 32 Republicans voted in favor of the bailout, eight of which are from Michigan. Seven additional Republicans in favor of the bailout were also from Midwestern states that are home to automobile plants. Besides the Republicans from states directly tied to the auto manufacturers, there was little right-wing support for the measure. It’s going to take more than a couple payday loans to get this problem out of the gutter.

Checks and Balances—Senate Could Kill Bailout Measure

The House approved the bailout, but opposition from the Senate could kill the bill. It’s obvious that Democrats in the House are in strong favor of the bailout, but the majority of Republicans in the House and Senate are in strong opposition of the bailout. Republicans, along with some Democrats, in the Senate argue that the bailout will not solve the issues that plague the auto industry.

What is the Purpose of the Bailout?

A lot of media attention has been given to the auto bailout in recent times. However, the proposal keeps changing, and people are confused about the bailout’s purpose. The most current proposal is a $14 billion bailout designed for two of the three big auto makers. The $14 billion is much less than the original request, and the bailout would now help prevent only Chrysler and General Motors from going into bankruptcy. Ford Motors claims that it has enough money to stay afloat for now, while Chrysler and General Motors allege that they are merely weeks from going bankrupt.

A Temporary Solution

The bill would create a temporary remedy until the new Congress and President-elect Barack Obama can develop a more permanent solution. The bill calls for strict oversight of Chrysler and General Motors: the company executives would have pay limits and would be forced to get rid of the aircraft they used to transport to previous Congressional hearings. George Bush will also appoint a “car czar” that has the power to recall the loans within 30 days if the auto makers are not cutting their costs enough.

Bailout Is Now Up To The Senate

The fate of the auto bailout is yet to be determined. The House of Representatives and President George W. Bush have given their support, but it is now up to the Senate whether or not the measure will pass. The Republicans in the Senate believe that instead of being a temporary solution for the auto industry, the bailout is simply prolonging the inevitable—the collapse of the big three American auto makers. The future of the American auto industry relies on the Senate vote; it will take 60 Senate votes to pass.

Choose Your Own Fate

Aren’t you glad that your financial future isn’t up to someone else’s vote? If you need a financial bailout or a temporary financial solution, you are at liberty to get extra money when you need it. Payday loans can do for you what the House is hoping the bailout will do for the auto industry: give your current financial situation a little boost until you can get back on your feet.

As Americans, it is our fundamental right to have our voices heard; this includes what we have to say about the auto bailout and our access to payday loans. Americans care about the auto bailout because it has everything to do with our tax money. Budgets are tight, so Americans are extremely vigilant about where their tax dollars are being spent. Americans are also concerned about their financial freedom. Some states are eliminating access to payday loans, which in essence, is eliminating financial freedom.

Auto Bailout

The Big 3 auto companies are struggling to remain above waters

The Big 3 auto companies, GM, Ford, and Chrysler, are begging Congress for money to help them avoid bankruptcy. The Big 3 are up against more than just Congress. A recent CNN poll claims that 6 out 10 individuals are opposed to the auto bailout more than half of the people polled are not in favor of bailing out the nation’s biggest automobile companies. Opposition increased when Americans learned of the poor performances by auto executives, and the private jet they flew to get to the Congressional meetings. Opposition to the bailout can be found across the nation, including the Midwest, where the auto industry employees thousands of Americans. With such widespread disapproval it will be interesting to see which way Congress votes. What do you think about the auto bailout?

Is the Government Listening?

Many Americans have absolutely no interest in saving the country’s major auto companies, but the auto companies are desperately pleading their case. On the contrary, many Americans are interested in preserving their financial freedom, including their right to payday loans, while several politicians are trying to eliminate payday loans nationwide. There is something wrong with this picture: Americans don’t want to bailout the auto companies because they would like to see their hard earned tax dollars go towards a more legitimate cause. Yet, the government is considering granting the Big 3 their bailout wishes? And Americans want to preserve payday loans and financial freedom. Yet, the government is trying to abolish payday loans? It sounds as though the government isn’t listening.

Use Your Voice

No matter what the issue is, Americans have the right to be heard, and Americans are catching on to this. If we want something bad enough we will use our voices to get it. Take this year’s election, for example. Our country desired change, and there was a record turnout for the presidential election. Barack Obama was elected president, due in part to his promise for change. Obama will surely bring big changes to the United States, but it is unclear if those changes will positively or negatively affect Americans. Obviously, the majority of the country believes Obama will bring much needed, positive change. He wouldn’t be president otherwise. However, Obama is one of the many politicians that would like to eliminate payday loans nationwide. You used your voice to put Obama in office, now use your voice to tell your president that you want to keep your financial freedom and your access to payday loans.

Don’t count on it

Have you ever heard of “planned obsolescence?” Essentially, mass-produced products are designed to either become obsolete or non-functional after a certain amount of use. This is very useful to the party that controls the means of production, as it creates a never-ending stream of demand for their products after things fall apart.

Things are falling apart now, America

Planned obsolescence has historically played a huge role in the American automobile industry. General Motors, one of America’s “Big Three” auto makers, has consistently operated under the principle of “What’s good for GM is good for America.” While this may have been appropriate during World War II, when GM’s involvement in the defense effort provided many jobs for hard-working civilians, it is an antiquated idea now. What’s “good for GM” may no longer be good for the American people.

For a lighter look at planned obsolescence in action, check out this classic 1940 short film, “Hired!” This is actually Part 2 of the film, but you’ll get the idea. The disposable punch line comes around at about 8:04 – these auto salesmen are hoping to sell a gentleman his next 10 cars. You’d need a heck of a fast cash advance for that!

Consumers are wiser now

They’ll buy sturdier, more economical foreign cars. And despite the current call for greener vehicles with lower emissions, America has taken a rather lackluster approach to this over the years. Don’t expect this to change anytime soon, as building big trucks and SUVs is the “American way” that has enabled the CEOs of America’s big auto makers to become obscenely rich.

The CEOs will take down America to save their own skins

As film director Michael Moore recently said on “Larry King Live,” the Big Three CEOs have no real interest in the capitalist ideal. “Go Capitalism! Free Market! Free Enterprise!” Really? It seems that the handout you’re crying to the government for - $25 BILLION – is their own Socialist safety net. Is what’s good for GM still good for America?

Perhaps not.

You’d think companies like GM, Ford and Chrysler that were losing money hand over foot would make the right kind of adjustments into order to right the ship. Right?

Wrong. Mass layoffs are imminent, yet the Big Three CEOs refuse to work with the government for the benefit of the American people. Didn’t Spock say that “the needs of the many outweigh the needs of the few?”

Capitalism doesn’t work if it means the rich get rich and the poor get trampled

When individuals are ruled by impersonal, irrational abstractions that make up a capitalist system in its purest form, the little people lose. People will be laid off because the CEOs don’t want to give up this kind of money:

• GM CEO Rick Wagoner: $5,000,000 per annum total salary, with the potential to receive a $15,000,000 golden parachute
• Ford CEO Alan Mulally:$22,000,000 earnings the past year
• Chrysler GEO Robert Nardelli: $22,800,000 total earnings

They are being paid this kind of money while workers are being laid off. While they are begging the government for a $25,000,000,000 handout. Cash advance loans, but without that “loan” part written into the deal.

How much money are the companies losing while CEOs sop up cash?

According to Moore when he was on with Larry King:

• Ford: $2,000,000,000
• GM: $39,000,000,000
• Chrysler (not mentioned by Moore): $662,000,000 in the second quarter of 2008 alone!

The end of capitalism as we know it?

And I think, really, what we’re seeing now — with them, with the banks — we’re seeing the end of capitalism. The end of capitalism as we know it and I say good riddance. It hasn’t helped the people or the planet.” – Michael Moore on Larry King Live, Wednesday, November 19th, 2008

Are you listening, government? We can’t give $25,000,000,000 to men who will use it to give themselves great bonuses, vacations, bigger jets and biggers yachts. We have to take a stand now.

Mr. Moore suggests that Obama step in as President Franklin Delano Roosevelt did during the Great Depression and WWII. He told the automakers what to do: build what America needed. Today, if the automakers can employ their workforce in the service of bettering mass transit, hybrid vehicles and more things that will help improve this country’s infrastructure, we’ll be on the road to recovery.

That’s a cash advance in the direction of a modified form of Socialism that the people of this nation can use. A strong nation is what we need. By repairing the economy and our infrastructure, we will achieve. That’s the American way.