Bye, Buy Miss American Pie!

Let me preface this post by saying that it is not the Democratic party nor the Republican party nor the Bush administration that is responsible for the sad shape of the America's auto industry. One could argue (that includes me) that this is, in large part, the fault of the average American spoiled by cheap gas and easy credit. You see, we have all grown up to believe that the American dream is more about what you acquire than who you are. And having the money to pay for what we want, well, that is a future problem. A future that most assuredly includes a better job and higher wages for all when the debts come due.

The following is not intended as braggadocio nor conceit, but rather, it is my personal story about pursing the "American Dream". I started my "career" making $2.10 an hour as a clerk in a convenience store while supporting a wife and a newborn baby. Let me pause to tell all teenagers in America that having children while still mostly a child yourself could lead to very somber circumstances -- DON'T do it! Back to my story...when I was 18 years old I went to a Sears store manager and asked him to extend me credit so that I could buy a tool set to do my own home and car repairs and to allow for the occasional purchase of a nice Easter outfit for my daughter Louanne. Though turned down in the "system" this manager at the Winrock Shopping Center in Albuquerque, NM believed in me enough to grant me a Sears credit line of $200; way back in 1975. I have never taken that PRIVILEGE for granted. Today, the average American seems to believe that credit and the protection from default from their own credit abuse is somehow a constitutional right.

Since 1980 I have paid cash (by saving first) for every car, never carried a monthly balance on a credit card beyond 30 days and I have put down at least 20% for each of the 6 houses I have owned since then. I have never had a late payment and I have always put off other purchases to make contributions into a 401k savings plan (which is now down a nifty 44.6% this year alone). With nothing more than a high school education I have been able to work my way up to a great job with a major corporation and, though currently struggling with a back disability, I live a life that 33 years ago I could not have even imagined. God has truly shined His light upon me!! I have my little piece of the American dream and I have never expected more from my government than the protection of my constitutional rights as set forth by our founding fathers. Today as I write this post, there is a long line of constituents looking for government handouts and in a quantity that has not been seen since the Great Depression.

Alas I come to the point of this message. Today (11/18/08) the CEO's of America's "Big Three" auto companies were in Washington DC offering up to Congress all of the reasons why they need taxpayer money to bail them out of a bad patch (as they say in the South). Did I mention they each flew to DC in separate private corporate jets!! If "we" do not bail them out, according to these CEOs who last year collectively made more than $30M in bonuses while their companies were losing BILLIONS, then catastrophic things will happen. Does this mean dogs and cats will be sleeping together as suggested in the film "Ghostbusters"? They tell us that up to 3 million jobs will be lost because of all the interlocks to their industry. Worse yet, they may not be able to find jobs to support their own lavish lifestyles to which they have become accustomed. How does one get one of those cushy jobs anyway?

Please understand that I am a compassionate man and I surely do not want to see good people lose their jobs, but what is the offer to people like Brooke and I who have always paid our bills and managed our debt appropriately? An article in last week's Barron's Magazine tells all of us who have lived financially responsible lives to suck it up and quit whining. Ah yes, this is what Joe Biden told us was being patriotic. Okay then! I will do my part and stop complaining because I have come to the realization that everyone will have to contribute to assure a recovery. But not without some very tough prerequisites and, to borrow from President-elect Obama, "Change We Need!"

First of all, the Big Three blew it by believing that life as we know it would always require big gas guzzling trucks and SUVs. I realize that all of us Americans need vehicles that can tow boats and jet-skis and carry a mini-van load of future soccer stars. But, there is a preponderance of inefficient vehicles on the road, that we simply need to move to more fuel efficient and environmentally friendly vehicles. Detroit blew it by being lulled into the belief that fuel would always be affordable and that American consumers would always believe that bigger is better (Only true in Texas now!). What we lost sight of was our responsibility to both our environment and our personal sense of financial accountability. As a result, we are faced with this current economic crisis and the pain which we all will have to endure.

I am sorry, but GM, Ford and Chrysler have failed to adjust to a changing reality, and as a result we are all faced with a major crisis in a core component of American manufacturing infrastructure. As hard as this is to accept, we simply need to let these companies go. Let them file for bankruptcy and attempt to reorganize just like any other business that gets in trouble. Set aside any foreign government assistance that may or may not have cost advantaged the Japanese and the Germans, they have simply and consistently built better cars - PERIOD! Capitalism has always been Darwinian, but now it has come home to sting so many Americans. The American capitalist system has always differentiated America and made her strong. Now recession and the potential for significant job losses is leading many to want to sell their souls to the devil no matter the cost; even if it threatens to destroy the American dream.

So, I vote against a "bail-out" for the car companies. This may well be throwing good money after bad, but worse yet, it will lead to an onslaught of comers including the airlines, then the home builders, then the retailers, then credit card companies, then the plumbers, then the electricians, then teachers, then florists and so on and so on. Stop the violence and let the auto companies fix their own problems or fail! Then again, this is just one man's opinion and I may be wrong...