Bail out?
OK, I'm the first to admit I don't have the smarts to be an economist. But I had this idea...
So, instead of bailing out the Big 3 automakers why not have the Gov't offer to subsidize half the cost of a new car for each taxpayer as their "loan" to the Big 3? The Big 3 would get increased sales, the average person could afford to finance the lower cost, autoworkers would keep their jobs, industry suppliers would remain solvent, everyone would win. The Big 3 could then pay back their "loan" with the proceeds from their cost-cutting and increased sales.
Put a time limit on it, for the next 6 months each taxpayer can take advantage of the deal for the purchase of one vehicle. I wouldn't normally buy an American car, (I tend to prefer Honda), but if this deal was available, I'd definitely pick up a Chevy or Saturn or whatever since we will be in the market for a vehicle in the near future.
I'm sure there are a myriad of reasons why this wouldn't work... and if I had the aforementioned smarts (which I don't) I'd probably see why, but in my simple little mind it seems like it would solve a lot of problems and help more people.
Someone with a better grasp on Economics want to point out the fatal flaws in my plan? :)
So, instead of bailing out the Big 3 automakers why not have the Gov't offer to subsidize half the cost of a new car for each taxpayer as their "loan" to the Big 3? The Big 3 would get increased sales, the average person could afford to finance the lower cost, autoworkers would keep their jobs, industry suppliers would remain solvent, everyone would win. The Big 3 could then pay back their "loan" with the proceeds from their cost-cutting and increased sales.
Put a time limit on it, for the next 6 months each taxpayer can take advantage of the deal for the purchase of one vehicle. I wouldn't normally buy an American car, (I tend to prefer Honda), but if this deal was available, I'd definitely pick up a Chevy or Saturn or whatever since we will be in the market for a vehicle in the near future.
I'm sure there are a myriad of reasons why this wouldn't work... and if I had the aforementioned smarts (which I don't) I'd probably see why, but in my simple little mind it seems like it would solve a lot of problems and help more people.
Someone with a better grasp on Economics want to point out the fatal flaws in my plan? :)