I can agree with this. Something! Despite the "One Market Uner God" religion, the free market as practiced in the US has ****ed up big time in America with cars, transportation and global warming.
Right-center types might want to think this, but not true. I actually thought Moore was a little weak on his proposals, but interesting.
Better yet, impose a higher tax on gas, thus bringing the interests of consumers, car manufacturers, and society in line with each other. It's much more effective to make fuel efficiency the best choice for consumers than to try to force automakers to make cars other than those that consumers are demanding. Higher gas taxes would allow car manufacturers to respond to the market by making more efficient cars, and would lead consumers to buy more efficient cars. Remember, the root problem isn't that the automakers are making inefficient cars - the problem is that people are buying them.
I consider myself left center and many of my neighbors consider me a flaming liberal and I think it. Moore is all about sensationalism and creating a strong reaction with total disregard about presenting the full story.
I think Moore has done a decent job in bringing to the forefront issues like the corporate abuses in various industries or the lack of medical insurance in such movies as "Sicko". You need a certain amount of sensationalism to attract attention and action. Sometimes another academic paper just won't cut it.
It looks like the auto bailout collapsed late tonight due to the Union not willing to accept wage cuts. The union is a bunch of idiots. Your choice is either bankrupcy, which would result in you getting either laid off or drastic wage reductions, or accept a wage cut now and salvage a lot of your jobs. The union is going to put the final nail in the coffin of these auto companies. http://biz.yahoo.com/ap/081211/congress_autos.html
Bucket, I don't think we need higher taxes on gas at all. What we see now IS the result of consumders demanding the automakers making more fuel efficient cars. This is market efficiency at it's best. GM failing, while Toyota is high on Prius, Camry, and Corolla.
I meant to say "not", not "now". The government is sitting here offering $14B to keep your company afloat, and the union pulls this stunt. You reap what you sow...
so, i guess they do another bill in january. automakers have to hold on until then. that is still a bold move by the union...considering the unpleasant ramifications if they are wrong.
I may have been vague in that last response. What we see now is already a result of much higher gas prices. The skyrocketing prices during the summer caused a collapse in demand for SUV and trucks. Buyers fled the SUVs and took shelter in the more fuel efficient japanese cars. In July, GM's large truck and SUV volume plunged over 30-35%. A whole third of it's sales disappeared from the year before. Toyota's Prius dipped only 8%. Toyota's overall sales volume dipped 12%. Honda's sales dipped 2%. For the first time in 17 years, a pickup truck was not the top selling vehicle. The Honda Civic knocked the F-150 to 2nd place.
So sayeth the guy who in this thread has been the author of such business gems as: 1. Let the government run it. 2. Give it to the workers and let them run it. Just because you work somewhere does not make you qualified to run the company. Just not a good idea.
I think Ford will be OK, GM will probably declare bankruptcy and I think it will prove to be a good thin in the long run for them. GM is not going anywhere. Chrysler on the other hand will disappear regardless of what the government hands out to them, Chrysler should not exist at all. They are not essential for the survival of the automobile industry in America. So GM will be the problem here, it looks like they will declare chapter 11 and reorganize. I think this is the right course of action for them anyways.
GM has finally hired their bankruptcy advisers. I wonder if Ford will at least explore the option, even if they don't do it. http://online.wsj.com/article/SB122903816924599853.html
a) republican senators are idiots. do you really want the utter collapse of the labor market on your hands? b) how is weil going to handle all these bankruptcies? they don't have an unlimited supply of bankruptcy lawyers.
The dental plan doomed them! (yes I posted this in the stock market thread but I like it enough to double dip ) <object width="512" height="296"><param name="movie" value="http://www.hulu.com/embed/UjlwjSips22lS3JNNXO02A"></param><param name="allowFullScreen" value="true"></param><embed src="http://www.hulu.com/embed/UjlwjSips22lS3JNNXO02A" type="application/x-shockwave-flash" allowFullScreen="true" width="512" height="296"></embed></object>
Is this supposed to be an argument against the efficacy of a higher gas tax? I'm not following. What you're emphasizing is the price elasticity of demand for gas, which is what makes the gas tax work.
