My idea is this: We spent $19 billion a year in foreign aid. Not to mention the $34 billion we spend in Iraq. That $19 billion is spent on very little for the population, alot is laundered and skimmend off the top to corrupt politicians. We brake down the amount we spend on each country, then reserve 10% +/- of each countries aid and set it aside. This money is reserved to buy vehicles for each countries infrastructure and public works systems. It would allow countries who normally don’t have a decent motorized public servant service to have at least decent if not excellent forms of emergency vehicles. This would also help in making sure that this money that is being spent, is being spent not only for the good of the people, but it is being used to buy our goods and services. A money cycle so to speak. Lets say a country gets $100 million in aid, we set aside $1 million for my proposal. Using known gov data, and this is not a cheap vehicle used for the example, a 3/4 ton 4×4 suburban cost the government $28k. At a million bucks set aside for vehicles, thats 35 trucks! For one country! Now imagine amount of vehicles that could be bought if they were buying Impalas or Fusions or Sebrings. At 10% of $19 billion thats almost 68,000 vehicles at $28k a piece. We are going to continue the foreign aid programs so why not help both parties out? If we do it every year, then eventually each country will have an outstanding infrastructure of emergency and public works vehicles. After 5 years, these countries can start auctioning off the vehicles to their public, any funds to be used for goods and services. And this program could be used for our municipalities as well. This to me seems like a more viable way to help the auto industry and struggling cities and towns that cant afford vehicles. What do you think?
By your analogy, we should just give them the money and not have them build cars? Basically a public funded jobs bank for an entire company? We as government entities have to buy American made vehicles when possible anyways by law(I have done purchasing for the county I work for), so we are supporting the auto companies anyhow. The only thing different is we are using foreign aid money to support the auto industry. It is not going to make the industry independantly strong with the foreign aid, but it helps. Since we have to buy American by law, and the bailout money is going to other things less viable, why not help the local governments?
I guess I dont get the whole pay a car company not to build cars. So, if they are not building cars but getting money for not building cars, then they dont need workers so they are now out of a job. At least this way, there is still a job for people. But my point to this is that our aid does get spent on vehicles in these countries, just not our companies vehicles. Our aid money is spent on other countries vehicles.
“Since we have to buy American by law, and the bailout money is going to other things less viable, why not help the local governments?” It’s always going to help them less to buy them a car than give them cash.
See, the thing is, public safety vehicles are replaced every 4-5 years anyways. Money is ear marked for the purchase of these vehicles which means other public works projects will be put on hold to afford the new vehicles.
Originally posted 2009-09-01 04:38:40.
No related posts.
{ 3 comments… read them below or add one }
It’s actually more wasteful than just giving them the money, believe it or not. The reason the car companies are in trouble is because they can’t produce cars that anyone wants at a price that anyone is willing to pay. Each car they build that someone doesn’t want to pay full price for is a net loss to our economy. So your plan helps the auto industry just as much, but burdens the economy with more inefficient production than just giving them money would.
Suppose I’m a painter making paintings that nobody wants. If you give me money, I’ll be happy, and I’ll have no need to paint. But if you buy lots of my paintings, yes I’ll be happy, but I’ll also be wasting paint and canvas that other people could use to make great masterpieces. So you help me the same amount, but hurt everyone else more.
Bluntly, the best choice for the country would be to let the US automakers collapse. But that will cause a lot of short-term pain, and now’s a really bad time for additional short-term pain.
Now’s a terrible time to lose your job, with unemployment at record highs. And the housing market makes it very hard to sell your house to meet urgent expenses now. To complete the triple-whammy, many people have seen their retirement accounts wiped out, which means they can’t afford to retire until the stock market rebounds.
Updates:
“Since we have to buy American by law, and the bailout money is going to other things less viable, why not help the local governments?” It’s always going to help them less to buy them a car than give them cash.
Really, your suggestion boils down to two things:
1) Bailing out the automakers by buying cars rather than giving them cash. I think I explained why this makes things worse.
2) Paying for the automakers bailout from foreign aid money rather than the treasury. That’s fine, but it’s more honest to argue something like, “with the economy the way it is, we can’t afford as much foreign aid was we used to”. The problem is that the bad economy is hurting other countries too, and reducing aid when things are bad makes things even worse. The worst thing a government can do is reduce services when the economy is bad.
“By your analogy, we should just give them the money and not have them build cars?” Yes, precisely. It costs us money, but at least it doesn’t distort the auto and steel markets.
I agree to stop the handouts…there is too much graft at the top and in the process of delivering the funds.
My only idea was to have the media stop charging for advertising for a couple of months…one of the auto industries biggest expenses…the media can afford it. It would be good PR…they can put a tag on it saying, “we are such patriots we didn’t charge GM for this ad”…And, some bigshot in Washington should look into a camera and ask Americans to buy US cars (thank heaven I already have a paid-for BMW)…but this may work…
Or, the UAW could ask their buddies at the NEA, the teachers’ union, to give them a bailout…they have been spending members’ dues on the likes of this
That’s an excellent idea and years ago, Lee Iaccoca of Chrysler proposed the exact same plan to pay off that company’s debts. Of course, that’s always rejected. Vehicles are real property and pretty much preclude the type of theft politicians are accustomed to. Billions were stolen in Iraq and never found, the bail-outs weren’t even stolen, just taken. In the bush administration, smash & grab became obsolete, along with money laundering, creative accounting, cooking the books; all the time-honored skills practiced by those who took a little pride in their craft. End of an era, replaced by the crudest types of gangsters. OTOH, I doubt if any will be remembered, let alone missed.