Running Head: WASTEFUL TAX DOLLARS
Wasteful Tax Dollars
On the minds of many today are the growing concerns of the economy. Even if we find ourselves personally stable, one has to wonder what looms in the future. Will we be able to purchase homes, pay for college, and could we end up jobless? The politicians tell us we must save the auto industry in order to pull out of the recession. The fear factor is very convincing but how will we feel when we get the bill, for the bailouts? Should we be spending our tax dollars to bail out auto industries?
It boggles the mind just how deep our economy has declined. It may seem insensitive, expressing no regard for those who may lose their jobs if the automakers go under. Yet, if these companies were smaller, we would not be bailing them out. They would simply file bankruptcy. There is little convincing evidence that financing them is going to make a significant difference. We are prolonging the inevitable. It seems obvious that the auto companies have made many bad business decisions. They are not able to compete with their foreign competitors; they are not adequately meeting the demands of the environmental and economical concerns of consumers. Furthermore, they continued to do business as usual even when sales declined and production slowed. This truly made sense when gas prices soared to four dollars a gallon; consumers were given loans for six years if their debt to income ratio could not be approved for cars averaging forty thousand dollars. It seems very hard to believe these automobile companies did not see what was in their business forecast.
Running a business at this scale is a complicated process. In order to be successful, car industries have to design and manufacture cars that people want, and for which people will pay more than they cost to manufacture. If they manage to do this then they are successful at gaining profits. How they reinvest those profits into their company is...