Why is it so Hard to Understand?


For the uninformed…I do not wish to get on a soapbox here and detour from what this blog is about.  It is about Muscle Cars and the people who follow or the people who want to learn more about them.

However, the ongoing hypocrisy about the American car manufacturers and their “broken” business model is sadly all out of whack and most of the info out there is just plain wrong or just lies being used by the political supporters of one party.  You know which one.

Fact- American car makers pay their employees health benefits or greatly subsidize them.

Fact -the Foreign makers do not.

Fact- the profits of American makers are taxed under current American law.

Fact- profits from foreign makers are not even taxed by their home countries until those profits are taken to their home market. And are almost totally exempt from U.S. taxation.

The wages between the car makers are within a couple dollars of being even, it is all the retirees and pension costs and health care that creates the uneven playing field.  The Japanese and the Europeans build some vehicles here.  For the Japanese there are a couple reasons. They cannot build their large trucks and cars in Japan because they are too wide for Japanese roads and would have a tax levied on them, so the export only models are actually cheaper to build here.  The other reason and this applies to all the Europeans as well is Health Care costs.  Yes the very same as what our makers have to pay under union contracts here are National Law in every one of these car manufacturers home country.  Every worker in England, Germany, Japan, France, Italy- every one is covered by National health care and it is paid through their taxes on the employers as well as the taxation of all citizens.  Here they pocket those costs and fore-go the cost on the employer side because they do not employ the extra workers at home but rather in the U.S. where they get by being WalMart and not ponying up the cash.  And those dollars go back to where ever the home company is based as added profits.

We gladly handed out Hundreds of billions to try and make the greedy bankers and Wall Street solvent without any plan on making them actually solvent.  Here’s your blank check, since you are a banker you know better than us how to use it.  Basically that was it.  But when Detroit came calling for help, we made them jump through hoops and made them beg for tens of billions.  Despite the fact that these guys directly control a million jobs in this country compared to the financial sectors hundreds of thousands of jobs.  And between their suppliers and their iron mining and rubber making and the electronic suppliers and every thing else that goes into building and maintaining their factories there are another 2 million jobs involved.

Up until the 1970’s every foreign made car sold in America had an added import tax on it.  We eliminated that to make it fair for the foreign companies and instead we opened the floodgates and not only made the field level- we made it advantage to the foreigners.  Our politicians are telling us that our manufacturers are not competitive but they are not because the laws are biased toward the foreign companies.  We give tax benefits to American companies that end American jobs and send jobs overseas.  We blame the American workers in our factories and say they are not competitive enough or they are overpaid and too greedy and EVERY TIME YOU TURN AROUND ANOTHER WALL STREET TYPE HAS STOLEN MILLIONS OF DOLLARS. Or more correctly 60 BILLION DOLLARS.  It is not the workers who have caused this mess.

It is POLITICIANS AND WALL STREET AND BANKERS.  And we know who they are and why they hang together.

And for all you people who have lost your jobs and watched factories close and industries move out of town, I do sympathise with you all, but how many are driving a foreign made or a car made by a foreign manufacturer here in the U.S.  Sad fact is when you weaken one part of the economy you do not make the rest stronger….that is a lie.  A 3 legged dog is never as fast as a four legged dog and a house with 3 walls cannot protect its inhabitants when the wind and the rain come from the open side.  The economy is the same. It needs all of us supporting each other, not selling out to foreign companies that do not care about what it means to be an American.

If General Motors goes bankrupt and Chrysler goes out of business then America may as well raise a Korean or a Chinese flag over the White House lawn because we will have lost.  Without a viable auto industry, every European and Asian country knows you are doomed and they have spent billions to assure that their car makers stay alive.  And here in America we tell ours to find a foreign buyer and cut down in size so those jobs leave the country.  Somehow we Americans are now the stupid people and the rest of the world scratches it’s head. 

And while I could go on for another 6 hours with this tripe…that’s the end of this…..for now.

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2 Responses to “Why is it so Hard to Understand?”

  1. mrred Says:

    Love this blog I’ll be back when I have more time.

  2. Tom Says:

    Very interesting and insightful article.

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