Boosting capitalism...or not

Discussion in 'Economy' started by MaggieMae, Feb 21, 2011.

  1. MaggieMae
    Offline

    MaggieMae Reality bits

    Joined:
    Apr 3, 2009
    Messages:
    24,043
    Thanks Received:
    1,599
    Trophy Points:
    48
    Ratings:
    +1,601
    Lifted as quoted in THE WEEK, 02.18.11 issue:

    GOVERNMENT IS NOT ALWAYS THE PROBLEM
    Quoting Dick Polman at The Philadelphia Inquirer

    When the Obama administration bailed out the auto industry two years ago, said Dick Polman, outraged conservatives predicted disaster. U.S. Rep. John Boehner said he rescue effort "guarantees failure at taxpayer expense," and Sen. Jon McCain scoffed that if there were people who believed that "Chrysler is going to survive, I'd like to meet them." Newt Gingrich went so far as to predict that "Chrysler taxes" would cause the population to rise up in revolt.

    Guess what? The free market purists were dead wrong. GM hs emerged from bankruptcy stronger than Ford, with billions in profits, and acclaim for vastly improved quality and reliability. Chrysler has increased its sales every month for the past nine months, and will soon roll out 16 new models. The federal government's bailout dollars are well on the way to being repaid; hundreds of thousands of jobs that would have been permanently lost have been saved. Indeed, the U.S. auto industry has added 53,000 workers since 2009.

    The lesson: Sometimes, "government needs to step in to save capitalism from its worst Darwinian excesses."


    And from Harold Myerson at The American Prospect

    As coroporate profits skyrocket, even as the economy remains stalled in a deep recession, Americans confront a grim new reality: Our corporations don't need us anymore.

    Half their revenue comes from abroad. Their products, increasingly, come from abroad as well. With each passing year, America's leading corporations grow more and more decoupled from the American economy. Their interests grow increasingly detached from those of our workers, our consumers--and our economic future.

    That's why the current downturn is different from its predecessors: Unlike any recession in American history-including the Great Depression--this one has come at a time when America's leading employers can return to profitability without rehiring large numbers of American workers.


    Growing America's economy will only happen with a solid partnership between the public and private sectors.
     
  2. Trajan
    Offline

    Trajan conscientia mille testes

    Joined:
    Jun 17, 2010
    Messages:
    29,048
    Thanks Received:
    4,751
    Trophy Points:
    48
    Location:
    The Bay Area Soviet
    Ratings:
    +4,756
    MM...I can only relate to the examples you set out, I think its fair to say that the Gm thing is far from over, in that we are not sure what the cost , will be down the road. I am not sure of agree btw with the GM rescue as "boosting capitalism" per se'. it certainly didn't speak well, for a truly free market.

    On an emotional note, am I glad GM and Chrysler survived?......yea, , however, thats a poor yardstick considering all of the variables.

    how does the second article relate?
     
  3. syrenn
    Offline

    syrenn BANNED

    Joined:
    May 10, 2010
    Messages:
    47,839
    Thanks Received:
    10,388
    Trophy Points:
    0
    Ratings:
    +10,404
    I am glad GM survived. However i am not glad that the union survived. That should have been the sipulation for saving it. It was the unions that caused it, they should have been forced out.
     
  4. The Infidel
    Offline

    The Infidel EVIL CONSERVATIVE

    Joined:
    May 19, 2010
    Messages:
    17,252
    Thanks Received:
    3,170
    Trophy Points:
    48
    Location:
    AMERITOPIA
    Ratings:
    +3,173
    Exactly why I wont buy a GM or Dodge.... I plan to be in the market for a diesel powered dually truck very soon, and I like the Dodge, but Ford will get my buisiness because they did it w/o my tax dollars.

    Bottm line....
     
    • Thank You! Thank You! x 1
  5. MaggieMae
    Offline

    MaggieMae Reality bits

    Joined:
    Apr 3, 2009
    Messages:
    24,043
    Thanks Received:
    1,599
    Trophy Points:
    48
    Ratings:
    +1,601
    The second is just a quote from a much longer article and it regards the "...or not" part of my title. The monied American corporations don't do much business in America anymore.

    Business Is Booming

     
  6. MaggieMae
    Offline

    MaggieMae Reality bits

    Joined:
    Apr 3, 2009
    Messages:
    24,043
    Thanks Received:
    1,599
    Trophy Points:
    48
    Ratings:
    +1,601
    Unions didn't make the decisions to manufacture vehicles that were past their time, i.e., massive production of gas-guzzling SUVs, when they were losing popularity year after year.

    DemandGen Report: GM’s Demand Downfall Gives New Meaning To Un-Leaded Strategy
     
  7. MaggieMae
    Offline

    MaggieMae Reality bits

    Joined:
    Apr 3, 2009
    Messages:
    24,043
    Thanks Received:
    1,599
    Trophy Points:
    48
    Ratings:
    +1,601
    When did your tax payments go up during the bankruptcy and recovery? When have they gone up at all since 1999??
     

Share This Page