Failed Business
By bobmnu
@bobmnu (8157)
United States
November 17, 2008 11:33am CST
This country has a history of wiping out industries over night. When I started College I learned to use a Slide Rule to do complicated math functions. When I graduated I purchased a new toy called a electronic calculator that could do routine math and the Slide Rule industry was gone, no government bailout. During college every student had a portable typewriter or paid someone to type their papers. Then there was the work processor and typewriters were hard to find. Today there is a major Global Company, International Business Machines (IBM), that almost went under when the market changed,(a new company started (Apple) and introduced the public to the Computer) and they were not quick enough to change. They were saved, not by the government but by taking a gamble on a new marketing strategy and developed a computer from existing technology that others could get a license and develop software for the computer. Again the company changed with no government bail out.
How many carriage makers started to switch from horse drawn to engine driven carriages and survived by changing and not looking to the government to bail them out. The capitalist system works and the markets will reward the good businesses and punish the ones that are not providing the consumer with a good value. When the government gets involved it usually means that you get a poorer product and poorer service.
Just remember the most feared words you can hear "I am from the Government, and I am here to help you".
1 person likes this
4 responses
@rodney850 (2145)
• United States
17 Nov 08
Bobmnu,
This view is something that the US government has yet to learn. If a business offers a good product at a fair price then the product will most likely be purchased by the consumer.
The auto industry has not been consumer driven for a very long time and until recently, was able to get away with it. I agree with the gentleman who said the industry is a dinosaur and a bailout would only postpone the inevitable. If the auto industry wants to survive it will take a concerted effort on the part of the company AND the union to do so. Most of this will involve cutting costs so they can pass the savings on to the consumer and the cost cutting will more than likely come in one of two ways or even both; employee cuts, or salary cuts. It will also involve providing the consumer with greater value than what the imports are providing right now.
America has finally decided she doesn't HAVE to buy an automobile every two or three years and until the auto industry finds a way to roll with this punch, it will be in danger of going under.
1 person likes this
@rodney850 (2145)
• United States
17 Nov 08
P.S.
With an hourly rate of 75+ dollars, how will American automobile manufacturers compete with the likes of Toyota who has an hourly rate of 45 dollars?
1 person likes this
@bobmnu (8157)
• United States
18 Nov 08
Back in the 60's and 70's we were convinced that it was being socially responsible to provide lavish Health Insurance and Retirement plans at a time when you had no choice but to buy an American Car. The Unions demanded and the companies gave in with some pressure from the government. I remember the UAW strikes. For example GM would go on strike and if it lasted more than 3 weeks you started to see layoff in the Steel industry followed by layoffs in the Coal Mining next was the rail roads. Once the foreign economies recovered from WWII and their local consumer needs were met they turned to the US Auto Market. Once you had a choice and could buy a better build more efficient auto people started to buy them. The Union response was to demand higher wages, more days off and better fringe benefits. As much as I would hate to see the results I almost favor a Chapter 11 filing and force the Unions to decide High wages and no jobs or lower wages and jobs.
@rodney850 (2145)
• United States
19 Nov 08
Bobmnu,
That decision by the unions is not far off! The tough question with the obvious answer? Which sounds better, half salary for years to come or unemployment compensation for 26 weeks?
@redyellowblackdog (10629)
• United States
17 Nov 08
Howdy, old timer! For old times sake, I still have my picket slide rule. Top of the line, don't you know. I showed it once to my nephew who did not even know what it was. I told him it was an analog computer, which in fact, it is. BTW: There once were electronic analog computers! Slightly faster and more accurate than a slide rule, but still one calculation at a time. Never saw one? They were too expensive for private ownership for the most part. I've never seen one either, only read about them. They cost thousands of dollars back when that was really a large amount of money.
Anyway, this business of the bailout is starting to reveal itself for what it is, a boondoggle. People are ticked! If it could be put to a vote there will be no more bailouts and even that big one might be rescinded if people could have their way.
1 person likes this
@redyellowblackdog (10629)
• United States
18 Nov 08
I believe you are right about it being a bailout for unions. Can you imagine 0bama caring if business needed help? Nah, I can't either.
@goldeneagle (6743)
• United States
17 Nov 08
I agree. It is not the government's job to bail out big business. It is the responsibility of the business managers to lead their companies in an innovative new direction in order to keep the business going. Government involvement usually screws up more than it helps.
1 person likes this
@bobmnu (8157)
• United States
18 Nov 08
Look at the housing industry when the government said to make 0% down interest only loans so people could afford homes. Look at the mess they are trying to "fix" again and we will pay a higher price for the fix and the results than if the Free Market had made a small adjustment a few years ago.
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