Seems to me that this is how we Americans solve our problems. Just ram in, preferably with a Hummer and you will be fine! This is exactly how I see our latest economic crisis being handled. First, Paulson convinced the Congress and the Senate to dish out $700 B of taxpayer money with no questions asked, so that he could ram it through the financial system, regardless of whether the banks wanted it or not (according to some reports) and hoped that it would solve the problem.
It didn't.
All it did, was create a situation like the one I have seen in India before. When one goes to a temple in India, there is usually a loooooong line of beggars seated at the entrance with their palms stretched out. And you better decide upfront if you want to give alms that particular day. Because, be prepared, when you start doling it out to one person, the other beggars appear out of the woodwork and you cannot escape. So, you keep delving into your purse to find more cash until you run out of the green stuff and then and only then, will the beggars disappear.
So Paulson created a situation like that, only on a MUCH larger scale. We now need to ram more money into the system. Just what exactly the system is, no one knows. All we know is that it is NOT middle class American people.
So we do what we are best at doing: American problem solving - there is a problem, pour in cash, it will go away. We don't blink, we don't think, ala Sarah Palin. We just dive in and pour the cash. That's what we are now trying to do with the Big three Detroit Auto makers. There are already reports of many more companies asking for a handout.
...While Middle class America is left seated at the temple door.
Can we stop for a moment and THINK? Can we try to identify the problem before rushing to fix it? I know, I know, the auto makers say that they wont last this month without money. But it cannot have happened in a jiffy exactly like Paulson said the financial storm happened in a jiffy.
What, exactly, are we trying to solve here? What is our major problem?
1. Is it the American auto manufacturing that we want to save?
2. Is it American jobs we are trying to save?
3. Is it both?
4. Are there not other options for creating jobs and other futuristic options for personal transportation?
For instance, I just read in Fortune magazine that Abu Dhabi is creating a completely self sufficient city in the middle of the desert. Read, "A Green city blooms in the desert" by Julia Joffe in the December 2008 Fortune magazine. The city is called "Masdar" and it will be home to 1,500 businesses, 50,000 residents, and 40,000 commuters, will use 75% less electricity and 60% less water. Personal transportation pods will be powered by lithium batteries and will replace cars.
The cost of building this city: $22B, about 2/3rds of what the Auto makers have requested Congress to pay for their initial bailout. It is estimated that they will come back for more before 2009 is out. Experts suggest it will cost the taxpayer between $75B and $125B. And we are not even sure if cars are the transportation mechanism of the future!
Wouldn't a project like the one planned by Abu Dhabi create jobs immediately? Wouldn't it create renewable energy, help America lead the world in urban planning and pour money where we need to be in the future? Wouldn't it also solve our future transportation needs? Are cars the ONLY way to travel? And are the auto manufacturers predictions of car sales for the future going to hold out? Are we pouring money before stopping to take a breath?Don't get me wrong: I have tremendous admiration for the good men and women who represent the American public in the Congress and the Senate. I think they are doing a fantastic job, to the best of their ability. They have been tough on the Auto makers and have learned from their experience of handing Paulson money with no strings attached.
Only, if only we would stop to THINK before rushing in FIX!
1 comment:
very good points - one hopes that there is some thought put into to what is to be expected before pouring in these billions. Don't we do that before decisions that involve much lower amounts?
I can't believe that Treasury dept is doling out these amounts without any clear direction or intent. Maybe, i am wrong, and they have a clear intent; it is just that it does not involve the interests of the common man - the taypayer - who is being literally swindled out of their savings and home.
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