Thursday, November 13, 2008

An Economic Rant

It slipped out. I didn't mean to yell, but I couldn't contain my anger any longer. "The checkbook is empty!" I hollered earlier this week in response to one more report about the nation's economy. "You're out of checks and money, too!" I added. I would be in trouble, too, if I ran my household like many of the nation's investment institutions and companies have managed their accounts. My impression is that they wrote checks that weren't theirs for money they didn't have. What did they expect would happen? Seriously, how did they expect this to end?

I am angry because my family and millions of Americans are paying the price for mistakes made by a privileged few. Now the Secretary of the Treasury says that there won't be enough money within the $700 billion to help people with mortgages because all of that money, and more, needs to be used to buy shares in the institutions that are in trouble. Now American automakers have their hands out.

Hold the phone. Just hold on one cotton-pickin' minute. I remember the 1970's, complete with gas lines and oil embargoes. I remember the call for fuel efficient cars and cars that used alternative fuels. That was the time to change the car culture in this country. There was a window of opportunity, and if you want to see how that opportunity could have become reality check out the documentary Who Killed the Electric Car? Instead of capitalizing on what was possible, the auto industry continued to make bigger and bigger gas guzzlers. Now they are in trouble and want to be bailed out.

I don't know how important it is that American car companies survive. I drive a used Subaru Outback that gets 27 miles to the gallon. I plan my trips to include every possible errand. There are days at a time when my car does not leave the garage.

The thing that makes me so angry is that many of us have made it a standard to live within our means, and we are finding more ways to conserve energy and resources. Our thermostat is currently at 65 degrees. I have found ways to cut our grocery bill, and we continue to eat healthy meals. I have seen reports about "phantom" power draws, so we are trying to remember to unplug electronics when they're not in use.

I don't write checks that aren't mine for money I don't have. I don't know where those bankers, brokers, and CEOs went to school, but they need a refresher course in Economics 101. I invite them to give me or any of the women I know a call because we could teach them a thing or two about balancing a budget.

4 comments:

Anonymous said...

Since most Americans have probably bought their last car, the real reason the govt can't let the industry go under is twofold:

1) military vehicles
2) the eventual retooling of the rail system

Otherwise the industry would be toast.

Anonymous said...

this is the question!

Anonymous said...

This is a tough one. I live in Detroit, and things are so bad here that people suggest that we set the place on fire and start over. I can't begin to tell you how many good people are losing their retirement, or declaring bankruptcy. My FIL worked for Chrysler in accounting for many years, now has dementia, and I wonder what will happen to his pension. Luckily, we will be able to care for my in-laws if need be.

I never did understand the need for the big red trucks that all the kids are driving -- all over the country. (Why would anyone need a truck if their business didn't require it? I never thought a truck was cool...) And don't get me started on the SUVs.

Michigan's only hope, for now, is the movie industry. I never thought I would see that happen.

Anonymous said...

I can see both sides of this issue. My husband started working at GM, and then for affiliates, but so far always for the GM account. I think the Big Three auto companies often have ignored public demand. But I also think the auto industry is this country's remaining major manufacturing base, and we cannot let it go under, if for no other reason than our national security. We cannot allow most of our heavy manufacturing to leave our shores. HOWEVER, I think any financial package for the auto companies should be based on the successful loan guarantee to Chrysler in the late 70s. Chrysler creditors, including the government, got all their money back -- with interest. But I think a big difference then was the symbolic value of Chrysler head Lee Iacocca taking only a dollar a year for salary to share in the sacrifice -- so completely unlike the honchos of the financial companies still partying on with junkets and bonuses. Whatever is done for the auto companies, there have to be MAJOR STRINGS attached.