JL21 wrote:Maybe I'm misreading it or not interpreting it correctly, but isn't the $4B coming from loans and tax credits? (i.e. not directly out of the taxpayers' pockets)
Regardless, someone has to pay that $4B at some point, and the government can either collect it from us or print more money. Neither of which appeal to me.
Although, energy is one area where I wouldn't be opposed to the government throwing some money.
JL21 wrote:Maybe I'm misreading it or not interpreting it correctly, but isn't the $4B coming from loans and tax credits? (i.e. not directly out of the taxpayers' pockets)
Regardless, someone has to pay that $4B at some point, and the government can either collect it from us or print more money. Neither of which appeal to me.
Although, energy is one area where I wouldn't be opposed to the government throwing some money.
If it's a loan, why would we pay for it? Wouldn't the collection be on the auto industry?
EDIT: And I'm not trying to be obtuse or anything. I'm honestly just wondering if there's something that I'm missing.
JL21 wrote:Maybe I'm misreading it or not interpreting it correctly, but isn't the $4B coming from loans and tax credits? (i.e. not directly out of the taxpayers' pockets)
Regardless, someone has to pay that $4B at some point, and the government can either collect it from us or print more money. Neither of which appeal to me.
Although, energy is one area where I wouldn't be opposed to the government throwing some money.
If it's a loan, why would we pay for it? Wouldn't the collection be on the auto industry?
EDIT: And I'm not trying to be obtuse or anything. I'm honestly just wondering if there's something that I'm missing.
I don't know. But, I HIGHLY doubt Ford ever pays $4B to the gov.......especially any time soon.
Fat Strat wrote:
I'm all for fuel efficient cars and 150 mpg's, don't get me wrong. What would happen if the government just didn't collect that $4 billion in taxes in the first place? People would have more money to buy the cars. Companies would have more money available to invest in research and development. Entrenpenuers would have more money available to build a car that didn't use gas at all...
What would honestly happen?
The money would still get spent by the government, just somewhere else and we would increase the deficit. The market might win, but it would probably be the Japanese automakers who win out.
Then Detroit's job is to adjust. Find out what's making Japan succeed, then make it better (instead of crying to Washington about all the unpatriotic folks buying imports).
JL21 wrote:Maybe I'm misreading it or not interpreting it correctly, but isn't the $4B coming from loans and tax credits? (i.e. not directly out of the taxpayers' pockets)
Regardless, someone has to pay that $4B at some point, and the government can either collect it from us or print more money. Neither of which appeal to me.
Although, energy is one area where I wouldn't be opposed to the government throwing some money.
If it's a loan, why would we pay for it? Wouldn't the collection be on the auto industry?
EDIT: And I'm not trying to be obtuse or anything. I'm honestly just wondering if there's something that I'm missing.
I don't know. But, I HIGHLY doubt Ford ever pays $4B to the gov.......especially any time soon.
If it comes in the form of a tax credit, then they aren't obligated to pay anyone.
EDIT: And I'm not trying to be obtuse or anything. I'm honestly just wondering if there's something that I'm missing.
I was going to make the same point that AW just made.
The money for the loan comes from somewhere, and the industry has to pay it back eventually anyway. It's a prop up in the hopes that the economy turns around and the auto industry can survive. Tax credits are fine, but will Congress make up for the $4 billion in unpaid taxes by cutting spending somewhere else or will they just take $4 billion more in debt/deficit? Will they raise taxes in other areas to pay for the $4 billion?
Either way, the government is getting involved in an area that should be private enterprise. If american car companies can't compete or survive to produce fuel-efficient cars, then they'll just have to start making better cars or start offering products that compete better with Hondas and Toyotas.
Fat Strat wrote:Either way, the government is getting involved in an area that should be private enterprise. If american car companies can't compete or survive to produce fuel-efficient cars, then they'll just have to start making better cars or start offering products that compete better with Hondas and Toyotas.
This is something that's been going on for quite some time, though. At some point, once unemployment within the industry reaches horrible levels, shouldn't somebody step in and do something? It's easy to shrug your shoulders and say "It's their own fault and they need to fix it". But if it's beneficial for both employees and the industry to have government assistance, I don't really understand the issue with that assistance being doled out.
