Opinion: The Auto Bailout

I know with the economy the way it is, people are really struggling to find their way financially, including the US Auto Industry. The American Majority is against bailing out the Auto Industry with $14 Billion Dollars. I know the citizens would probably rather see that money go to a different use, especially during these economic times.

Having lived in Michigan during late 2007 / early 2008, I understand how crucial the Auto Industry is to their economy. It's actually kind of surreal living there. You drive around everywhere and everyone is driving an American Car. It's sort of Anti-American not to be doing so. You definitely stick out. In Ann Arbor, where I lived, only the yuppies and out-of-state college students would sport a Japanese or German car. But the rest of Michigan drives American. I drove a Pontaiac Grand Prix for 3 months. The thing was ginormous and got like 13 miles to the gallon. I'm just glad my commute was short.

Having grown up in Los Angeles, arguably the car lover capital of the United States, where there are 7.5 million cars for a population of 13 million, it's not uncommon for car conversations to take place. Most of those cars talks are about the latest from Germany or Japan. No one really think 'You know... I'm so excited for that Chevy Silverado!'

I know it's not the case for everyone though. The older generation, for example, can still be passionate about buying American. Take for example my Grandmother. She's a bit stubborn in that she'd never drive a Japanese Car, even though we'd love to see her in a Honda Accord or Toyota Camry. Instead, she chose to drive a newer Chevy Impala. Before that, she drove an Oldsmobile.

So my way of thinking is torn. Do I believe in survival of the fittest and innovation (what school and business teaches me) or do I believe in the lives, culture and local economy that would be affected without a bailout?

I read article in the New York Times such as 'City of Detroit, buckling under repeated blows, sustains another hit' and you start to see the human side of what Detroit would be without an Auto Industry. After going to Detroit on many ocassion, driving through that city even with the Auto Industry is depressing. If the Auto Industry died, that city would suffer a catastrophe. A quote from a local restaurant owner further humanizes this by saying, “We get all kinds of business from auto workers. “If the companies don’t get money, Detroit is done for.”

But then the business side of me kicks in. I start to think, Why has the American Auto Industry not pushed innovation and forward thinking? Yes, you have cars like the Chevy Volt coming out. But with innovative brands and ideas, such as those from GM's Saturn division of cars, stalling and becoming generic everyday cars, you start to wonder whether or not the Big 3 will push innovation and survive even with a $14 billion dollar bump.

In the end, I don't think it's fair to bailout the American Banks and not the Big 3 Auto Companies. I feel like as if you're going to bailout one, you should bailout the other. However, I really don't feel bailing out either was a good decision. America was built on innovation and forward thinking. I feel like a bailout pushes forward stability rather than innovation.

Maybe American Companies just need a good kick in the pants? Or maybe just a prayer (as indicated in included photo)?