The U.S. should have never bailed out the automakers or the 6 largest banks. That should mean every company should get a bail out when they need one fair is fair right. But it's not that these companies failed and we granted them more money that does not make any sense. Who's to say they'll make it this time around. We don't live in a capitalist society anymore when the government is giving such large grants for the company CEO's to get even richer yes the government should garnish the company's profits till the grant which should have been a loan in the first place is repaid no one should be giving that kind of money for failing and its just not auto makers getting bailed out either.
Simply handing the companies money does not help them fix the problems that put them in the situation in the first place. By taking partial ownership, the government would be funding the rebuilding process, and they should also get a return from it, and encourage prevention of the problem in the future. The government would not need to take permanent ownership, since they could always sell the shares in the future.
Given the automakers current success, they ought to send some money back to the American people, by way of the federal government. We helped them out, so they need to help us back, and not just those that work directly for their companies and suppliers. Those of us not in the auto industry want to see a return on the investment our government made in these huge corporations.
Having the government own a piece of the automobile companies it helped to bail out of financial difficulties will help keep them on alert, so to speak. Having someone monitoring things, from a governmental perspective, will help people from becoming overly greedy again to the point where they're in trouble again. This industry is too important to the economy of this country, if the behavior of the workers in the industry drives the companies into the ground due to ridiculous bonuses, and insanely high pay, then they will have to be kept an eye on, to keep them honest.
Look what greed did, it put millions of SUV's on the road and when gas prices skyrocketed, people realized they had been had by the car companies. But the car companies themselves ruined their own businesses with greed. They made huge profits on SUVs and that is why they produced them. Maybe if the government paid for the bailout of the companies, it should make the decisions. It couldn't be any worse than what the companies did to themselves. Perhaps the government will make more informed decisions and actually turn the companies around.
If a car company wants tax payer money to keep their company afloat, then the taxpayer and government must have a stake in the business. In the cases of these car companies, billions of dollars were used to keep them afloat, and that type of loan deserves part ownership on behalf of the american taxpayer. By government, I understand it is meant the taxpayer. We want our money back and the government represents the people, so they must manage the company they bailed out.
Everyone responsible for what happened should be sacked as a condition of a bailout, and then banned for life from positions of authority. If that includes the top authority then either have the shareholders decide who fills those positions or form an independent commission to decide who will replace them.
If shareholder votes had anything to do with it then require those shareholders who were responsible to allow their stocks to be bought out and then ban them from investing in the company ever again.
Otherwise you're just rewarding people for their incompetence or their misconduct. If we need to save these companies for the economy to work, fine, save the company, but the human beings involved who were responsible for the economic mess in the first place shouldn't get to see a penny of that bailout money.
No one will disagree that the government does a poor job of running itself. Why would we put something like the auto industry in their hands too?
The United States government should not be involved in owning private companies, like General Motors. Inevitably, politics will get in the way of the company making sound management decisions. Imagine congressmen pressuring General Motors not to close dealerships in their home district, because it would harm employment in that area. The government needs to stay out.
It is not in the interest of the government to be involved in private ventures, like the automobile industry. These companies can be better run in a private setting. However, considering the huge bailout that was paid with taxpayer money, I believe that automakers should have to repay the government with profits.
In a capitalist society, the government takes no ownership in private industry. Doing so would allow the government to manipulate private markets and, thus, make them no longer completely free to operate as they are intended to operate. Also, once the government takes over a small piece of ownership of private enterprise, it is only a matter of time before they take over the rest.
Although the government used government money to bail out the auto companies, the government should not partially own the auto industry because they have problems running themselves and staying within a reasonable budget. I mean thanks to Obama we are a trillion dollars in debt. In a sense if we want to be picky about it and look at it this way, then the banks funding the bail out money should partially own the auto industry or even the tax payers.
No matter how much the US government bails out the automakers that does not give them the right to own a piece of them. The automakers need to be accountable for there actions and they should have to repay the government in a certain time frame. Having the government take some sort of control does not solve the problem of low cost production.
If the government is there to bail out any organization, then that provides a safety net for a company. With that safety net, businesses are encouraged to take on more risk than they should; it also removes the "hunger" to strive for increased innovation. If the government partially owns the auto industry (or companies within the organization), that will add an additional layer of management and people to answer to. The government does not understand the auto industry and should not be in a position to make "ownership" decisions.
Right now, in this economy, people are struggling. high unemployment, more cutbacks and job insecurity are on everyone mind. So, what does the government do? Decide to bail out companies. How about helping out individuals? Maybe a delay in taxes or some other stimulus package to help those who need it. In addition, I get calls several times a day because I can't pay my credit card bill. Can the government bail me out? No. And it shouldn't to big business who can't be trusted.
If government partially owns the U.S. Auto makers. they have to involve the government in every decision they have to make which will jeopardize their originality and delay decisions.