Do something about the Bailouts
I just wrote my congress people, Dick Cheney, and President Bush about the auto maker bailouts. I also threw in a bit about the other bailouts as well. To get involved, and have access to a form letter on the automaker bailout you can click here. I have already done this, and like I said, I added some of my own stuff to the form letter they automatically give you. I have used their services before concerning drilling for oil, look through my earlier posts and you will find it. Below, I have included my version of the letter sent.
November 19, 2008
[recipient address was inserted here]
Dear [recipient name was inserted here],
Since the 1970s, Detroit’s Big Three auto makers have failed to keep up in the competitive auto industry. Now they are begging the federal government for a bailout to the tune of $75 billion!
Ten years ago the Big Three posted a combined profit of over $16 billion dollars. But management failed to wisely invest these profits.
The Big Three are heavily weighed down by irresponsible labor costs. The problem in the auto industry is caused by unrealistic union contracts written decades ago. These contracts did not give the industry the flexibility it needed to respond to market changes and burdened the industry with legacy costs. The Big Three each pay over $30 per hour per person more in labor costs than the Japanese auto makers. They have tried to recoup these losses by selling us over priced, over sized SUVs for years. Since gas prices went up, the demand for those SUVs has decreased, and the Big Three are in a world of hurt.
General Motors is leading the call for the $75 billion taxpayer bailout, speeding up the $25 billion loan program to develop fuel-efficient vehicles, $25 billion in general support to keep the companies operating, and $25 billion to bailout promises to union benefits.
It is time to draw the line in the sand when it comes to federal bailouts. Please do not support a bailout of the Big Three auto makers.
I personally have not supported any of the bailouts thus far, but the idea that we should bail out the Big Three auto makers when they should have seen the writing on the walls years ago would really go too far. GM is playing chicken with the government right now. They are threatening that the company will completely cease to be if they don’t get this bail out money. Frankly that is a lie, and our government needs to call their bluff. The best thing that could happen to GM or any of the Big Three would be to go into chapter 11 and restructure. I realize that unions make up a big constituency, and this would not sit well with them, but if we don’t fix this the right way now by letting them file bankruptcy and forcing them to restructure within the confines of our proven economic system, we’ll just be in the same place down the road. How far down the road that will be is hard to tell, but a bailout for the Big Three automakers is nothing more than band-aid.
None of these bailouts are outlined in the Constitution, nor is the government taking ownership stakes in the companies it is bailing out. The Constitution is supposed to be the supreme law of the land, and that’s what the people want. Your job is to represent the people; the people don’t want these bailouts, and they do want the Constitution upheld. Please, do the right thing.