Tuesday, December 2, 2008

The problem with an auto bailout

The auto industry bailout has been floating around Washington for the past few months and while I understand the grave short-term consequences if the Detroit three fail, I do take some issue with the proposed bailout. Perhaps instead of a bail out the government can assist in a gradual phase out these companies in order to reduce a shock on the economy. But here are some other reasons why the bailout won't get results.

1. Bailing out companies that are not competitive is foolish- Ford, Chrysler, and GM have not been competitive in the United States for quite a few years and have steadily lost marketshare in the domestic market. Although these companies perform slightly better abroad, I think the decline of these once dominant companies in the United States is a tell tale sign that some major business restructuring needs to happen. Besides producing a sub-par product, the Big Three are forced to compete with the likes of Toyota and Honda who do not have major union commitments inhibiting their business model.

2. American cars are Crap. I mean realistically are there any people in their mid 20's who would buy a new Buick or a Chrysler? Such individuals would be very hard to find, and no one is to blame except the car companies themselves. I really believe that the people who created the PT cruiser, Buick Rendezvous, and the Ford Taurus are heading straight for auto designer hell. Poor design and horrible quality has greatly tarnished the American car industry, and the bailout is unlikely to reverse the course.

3. From my understanding the bailout proposal stipulates that in exchange for funds, the Big Three have to commit to manufacturing more hybrid vehicles. Isn't that wonderful and honkey-dorey? What the gov't ignores is the fact that hybrid vehicles have actually hurt the Detroit automakers. It will be very hard for these companies to recover if they are forced to make unprofitable products.

The true north strong and free, eh?

When most people think of Canada they think of the maple leaf, hockey, freezing cold, and unfortunate accents, and yet most Americans turn a blind eye to Canada's open hatred of America. While on vacation in Mexico (which was overrun by drunken Canadians seeking a to change their skin tone from ghost pale to polar bear white) I found it distasteful how quickly Canadians injected themselves into American politics. Within seconds of any conversation, the Canadians wanted to point out how much they hate America, why they would never move there, why our politicians (except The Chosen One) suck, and that 9/11 was a conspiracy.

It's quite bold for a country that is on the verge of a coup and a secession to preoccupy itself with the politics of its neighbor, insecurity perhaps?

Now I know Canadians have acquired a reputation for politeness, but this is far from polite. It irritates me that Canadians seem to think that they are somehow more enlightened than Americans. Much like Europeans, Canadians glow in the aura of false knowledge. Canadians and Europeans often act as if they know all there is to know about the United States and yet when you dig more than inch deep they reveal their true ignorance. Canadians like to tout the superiority of their universal healthcare system, and yet ignore the fact that their taxes are absurd. Canadians talk about how peaceful their country is, and ignore the fact that America has done their bidding for the last 80 years or so.

It is disgusting how Canadians use every opportunity to put down the United States, which is quite bold for a country that owes its independence and freedom to its proximity to the United States. Let's face it, if the US was not Canada's neighbor, Canadians would be speaking Russian by now.

In the context of global politics Canada should be seen and not heard. Canada don't make us make an Iraq out of you, we'll have the Quebecois fighting the Anglos within 3 weeks of an invasion. If the invasion does not pan out, we'll confiscate your 6 hockey teams and start breaking off pieces of the Stanley Cup until you cry for mercy.