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Thursday, December 11, 2008

Big Three

I know that it has been a while since I have posted and I would like to take the time to apologize. Since I live in the state of Michigan, I have been deeply concerned about the fates of the Big Three auto makers and how it would effest the area in which I live.
You see, what they are going before Congress for is not a bailout like people would like to think it is. It is a loan that they would have to pay back. If even one of them goes under, the cost to the American public would be even greater than what they are asking for. The costs would be both direct, meaning their employees and suppliers, and indirect. The indirect costs include the loss of tax revenue and the loss of businesses where those employees spend what they earn.
Three of the largest employers where I live would have to lay off significant portions of their labor force. Obviously, that would have a direct effect on my job, since I work for one of the retailers which is effected by their spending. Quite a few others would be driven out of business. No business means no paychecks for the employees for those companies. There would be less money for discretionary spending.
The cost to the government would be even greater than what the Detroit automakers are asking for, as well. We would be having more people applying for unemployment benefits. Added to that would be the loss of tax revenue. I know that these entities have gotten tax breaks in the past. But people forget that they more than make up for that with the taxes they pay through their employees. Thais where I come in.
Once again, they are looking or a loan, not a bailout. After all, the bankers got seven hundres billion.

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