I just sent this to the Speaker of the House
Dear Congresswoman Pelosi:
I am neither a economics student or a finance counselor, only an American housewife; a resident of Michigan whose life has always been somewhat affected by the ups and downs of the auto industry.
I have a suggestion that might seem odd at first glance but each time I mention it to friends who are discussing the current situation, I get a reaction from them that makes me think I might have a useful idea.
Bailing out the Big 3 by handing over millions or even billions of dollars for them to continue business as usual does not seem like a viable solution to me nor does it promote a free market. It will only prolong the inevitable. If people cannot afford vehicles and/or cannot get a loan for a vehicle in this economic climate, then handing over money to the auto companies will only extend the eventual downfall of the industry.
The only way to help Ford, GM and Chrysler is to stimulate sales. Why not take that money that is being considered for a loan to the auto companies and loan it to the people of the United States to buy new cars? I am suggesting that the government buy something like coupons/gift certificates from each company and give them to the taxpayers for American auto purchases only. I am thinking of some kind of discount to the people with much delayed payments; perhaps paying them off over the years with their tax refunds. How about full-price vouchers for our soldiers?
This will put immediate cash in the hands of the auto industry. It will keep the auto industry workers selling and making cars. It will help the businesses that support the auto industry, it keeps Americans working, it gets people decent cars to drive to jobs so they can work, it promotes getting the money back from the taxpayers instead of the possibility of giving this money to the car companies and then having them go under anyway.
While you are concerned about doling out money with restrictions to the auto companies I urge you NOT to give them the money directly. They will pay off their current suppliers, perhaps they will not lay people off until after the holidays, their stock might go up a bit for a while but if they can't sell cars--it won't matter in the long run and the money will be wasted and we will still be in an economic crisis.
If the government can afford to loan money out, loan it out to the American people in a way that helps everyone.
Thank you for your time and consideration.
Sincerely,
Linda A. Renaud
I am neither a economics student or a finance counselor, only an American housewife; a resident of Michigan whose life has always been somewhat affected by the ups and downs of the auto industry.
I have a suggestion that might seem odd at first glance but each time I mention it to friends who are discussing the current situation, I get a reaction from them that makes me think I might have a useful idea.
Bailing out the Big 3 by handing over millions or even billions of dollars for them to continue business as usual does not seem like a viable solution to me nor does it promote a free market. It will only prolong the inevitable. If people cannot afford vehicles and/or cannot get a loan for a vehicle in this economic climate, then handing over money to the auto companies will only extend the eventual downfall of the industry.
The only way to help Ford, GM and Chrysler is to stimulate sales. Why not take that money that is being considered for a loan to the auto companies and loan it to the people of the United States to buy new cars? I am suggesting that the government buy something like coupons/gift certificates from each company and give them to the taxpayers for American auto purchases only. I am thinking of some kind of discount to the people with much delayed payments; perhaps paying them off over the years with their tax refunds. How about full-price vouchers for our soldiers?
This will put immediate cash in the hands of the auto industry. It will keep the auto industry workers selling and making cars. It will help the businesses that support the auto industry, it keeps Americans working, it gets people decent cars to drive to jobs so they can work, it promotes getting the money back from the taxpayers instead of the possibility of giving this money to the car companies and then having them go under anyway.
While you are concerned about doling out money with restrictions to the auto companies I urge you NOT to give them the money directly. They will pay off their current suppliers, perhaps they will not lay people off until after the holidays, their stock might go up a bit for a while but if they can't sell cars--it won't matter in the long run and the money will be wasted and we will still be in an economic crisis.
If the government can afford to loan money out, loan it out to the American people in a way that helps everyone.
Thank you for your time and consideration.
Sincerely,
Linda A. Renaud