If You Are bailing Out Your Automobile…
Here is what we know about financial institutions. Generally they were created to allow more free exchange of money between businesses. You didn’t have to walk into the tanners shop with a pouch full of gold to buy materials to make your boots. People knowing that wouldn’t be so inclined to wait outside the tanners residence and roll the business men as they approached. So banks supplied and cashed checks and protected the gold. Then they got the idea that they might hold your money (the everyday consumer) when your loving homestead was a little too unsecured to guarantee its safety. Basically at that point, they sold checks. Sure this is a very generalist view of the beginning of banks. So the bankers were sitting around their meeting table asking, “How can we make more money?” One guys brings up this idea getting people to pay more for products then the market price. He had to explain that it could be accomplished by giving people money immediately in exchange for them giving the bank more money back, but over the course of time. With that came the birth of credit. “Financial institutions” (or “money changers” as the Bible calls them) are organizations that make their livelihood by getting people to pay more for products then they are worth. Business, people, heck even show animals can buy stuff with money they haven’t earned yet, and might not earn.
Real quick quiz. Can you name the one thing in the paragraph above that has to exist in order for this to a fruitful economy to exist? Hint #1, it wasn’t credit. Credit wasn’t around for thousands of years while economies emerged. Hint#2, it wasn’t money. Money too came late. One could still live today on the barter system. Oh, I see you jump up with your hand ion the air shouting, “PRODUCTS!! We have to have products.” Right, a bootmaker could trade a family’s worth of boots to a farmer for a years supply worth of vegetables. He can then trade some of those vegetables to the tanner for more leather. See, no money, no credit. A functional economy without “financial institutions”. Try having a functional US economy without cars. Here we are talking about “energy independence” while we slip into transportation dependence?
The Auto industry supplies “products”. Something solid that the community as a whole needs. The credit industry only makes everything cost more. If a bank won’t give a loan for a new car? Good! Eventually that car will cost its real market value and people will pay for them with the money they already have. If there are no cars for transportation in this country, it can be a much more dire situation.
So bail out the auto industry but put stipulations on it. No more screwing the American people by selling them cars that intentionally do not last that long. Quit scamming with the oil companies to produce only inefficient engines. Last, we expect to see a reduction in large unnecessary vehicles. I don’t care what the demand is. People are dumb, stop catering to it.
That is why it makes more sense to bail out the auto industry then it does the credit industry.