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What is the point of bailing out an Industry, if we cant afford the stuff anyways
Taxpayer/Govt bail out auto industry, yeh. We all know that. I dont need to link proof.
But now middle class cant afford their cars, and likely lower class cannot afford either. If only the wealthy can afford, then there is no point in bailouts. The wealthy can just bail the domestic auto makers out by buying more cars. Or just purchase all the shares, and do what they want.
I am far from wealthy. In fact I don't really know anyone that would be considered as such, personally. None of my friends and family have any issues with being able to afford a vehicle. Most folks have enough sense to purchase what they can afford. There is nothing wrong with buying used - my last 2 cars have been used. My son just bought a great used Outback - he loves it. My BF only buys used.
If only the wealthy can afford cars, who are all those people out there on the roads??
There's a glut of used cars on the market, amounts never seen before, mainly because of the pandemic. Plenty of great deals out there.
However, these 7 year loans that are out there are annoying and over the top in my opinion.
No, there really isn't. There is a MASSIVE market for used cars right now. Prices for new cars have gotten ridiculous and people are finally starting to have some common sense about their car purchases.
I think the rationale is by propping up industries like the airlines and auto manufacturers is that you are also making sure that the many, many suppliers of parts also don't go under.
In that case, the $80bil or so should be used to directly just purchase vehicles, and not as a down payment, but an outright purchase as much as that amount can. Then distribute those wheels to those who need. That way the money will trickle up to the suppliers, and vendors too.
Quote:
Originally Posted by ChessieMom
Nonsense clip.
I am far from wealthy. In fact I don't really know anyone that would be considered as such, personally. None of my friends and family have any issues with being able to afford a vehicle. Most folks have enough sense to purchase what they can afford. There is nothing wrong with buying used - my last 2 cars have been used. My son just bought a great used Outback - he loves it. My BF only buys used.
If only the wealthy can afford cars, who are all those people out there on the roads??
If people are buying used, and these cars really are lasting that long, then the auto industry needs to shrink anyways. No point in bailing out companies that are only pumping out products so expensive, their consumer base goes with an alternative.
Its like giving people your money so those people can speculate as to how much you are willing to *********rself over with debt. Its like bailing out Purdue Pharma when their only product is oxycontin.
Another example is of course the bankers. Taxpayers bail out bankers only for bankers to put taxpayers into more debt because that is how bankers profit. Makes no sense for the taxpayers. Is like I give you $1 only for you to loan back the $1 and say I now owe you $2 so on and so forth.
Then bailouts indeed is shooting ourselves in the foot. Is like alcoholic loaning the bottle shop owner money to stay afloat only now the bottle shop owner has to charge alcoholic even more money to pay back loan.
Also, for any bailouts, shareholders and CEO bonuses should be removed from the picture.
The tax payers should not be on the hook for profiteers. They can always declare bankruptcy.
Also, for any bailouts, shareholders and CEO bonuses should be removed from the picture.
This is the Economics forum, so you should know a thing or two about Economics before you post.
Your post above is among the more ignorant posts I've seen here.
The decision of the government to keep some businesses alive is 100% independent of the market for CEO labor and hence the compensation for CEO labor
If anything, keeping a business alive - even with government "bailouts" requires exceptionally skilled & strategic CEOs who are able to navigate unprecedented & turbulent economic times and for which performance should be compensated - via lucrative bonuses - when objectives are achieved.
Quote:
Originally Posted by J746NEW
The tax payers should not be on the hook for profiteers.
There is no such thing as a profiteer, except in left-wing ignorant and unthinking memes.
It.
Does.
Not.
Exist.
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