Bailouts
If you are not already fully aware of the $700 billion bailout package, then you most likely do not live in the United States. Or, if you live in the US and you are unaware of this bailout plan, you might be Amish…which would mean you’re not reading this right now. At first, many of us questioned, “how did we get to this point?” I won’t answer that because so many experts have already laid it all out. But, if I were to boil it down to one word, I would say the reason is consumption.
This morning, as I watched the morning news, I learned of a potential $25 billion bailout for the automobile industry. Again, many of us find ourselves asking, “How did we get here?”
The automobile industry has been a huge part of our economy and even our national identity. The auto industry has employed numerous people over the years…enough that probably everyone of us knows someone who has worked in the automobile industry. Over the last several years, the American automobile industry has been suffering.
Toyota and Honda are quickly rising up the ranks while GM, Chrysler, and Ford tumble. I believe there are several reasons for this…Of course, I’m no expert. So, these are totally unfounded, unproven observations from someone who has relatively little knowledge of the automobile industry.
1. Big cars- The US automobile manufacturer’s continue to make large vehicles that get less gas mileage than the imported vehicles. If I can buy a 4-door sedan that gets 35 miles to the gallon or one that gets 23 miles to the gallon, which one am I going to buy?
2. Big oil- If we start building more fuel-efficient vehicles, we will consume less oil. That would be a good thing, right? Yes, unless, of course, you are a part of the oil industry. The US consumes 20 million barrels of oil a day. The next two biggest consumers are China (5.6 million) and Japan (5.5 million). We are responsible for 25% of the worlds oil consumption, while we only have 3% of its reserves. This would indicate a problem with over-consumption. Also, we import over 50% of our oil. Another problem. So, in the midst of this economic turmoil, oil companies are producing record profits and lobbying in Washington to make sure that lawmakers do not raise fuel efficiency standards.
3. Loss of loyalty- I remember a time, not so long ago, when people who drove foreign vehicles were ridiculed by their neighbors. “Buy American” used to be the slogan. However, over the years, as plants have closed because jobs are being exported, the sense of loyalty has been quickly disappearing (just about as quickly as the jobs). Muncie used to be a town where the auto industry fueled the economy. All of the dealerships in town were selling GM, Chrysler, or Ford products. Now, the factories are closing (if not already closed) and the busiest car lots are Nissan, Toyota, and Honda. People say, “Why buy a GM product? They closed my plant.”
So, what’s the remedy? Increase fuel-efficiency standards. Build smaller vehicles. Stop exporting manufacturing. These are simply my observations. I am not Lee Iacocca or Henry Ford. I don’t even have a small understanding of how things work in this industry. But, from an outsiders viewpoint, this is what I see.
Now, let’s be thankful for bailouts. I wouldn’t have a chance if this life if I hadn’t been bailed out by Jesus! That’s the ultimate bailout that we’re all in need of…regardless of the state of the economy.