12.08.2008

Take Another Look: Why not RICO for the Corporate Tycoons? No Bailout for the "Big Three" Automakers.

Like many of you, for the last few weeks of "America's Economic Downturn" the series, I have watched the irresponsible blame game, listened to the increased use of deceptive language and I have viewed the fake remorse of demonstrated by high priced corporate executives and paid for politicians.

I have listened to the very real outrage voiced by those who find themselves in the "middle class" as well as those suffering the worst - the working poor.

Why should the "Big Three" automakers: Ford, General Motors and Chrysler be rescued or "bailed out" because of their poor performance?

A majority of the financial analysts agree that in the short term, the failure of these three companies would have a detrimental effect on the American economy and consumer confidence would take a hit, but is it possible that in the long run, allowing the companies to go under would actually have a positive effect thus improving the economic situation?

First of all, giving the "Big Three" a financial bailout does not necessarily mean that these companies will return to health because their problems are systematic and operational in nature.
Toyota and Honda manufacture many of their vehicles at auto plants all across the United States. They are not standing in line asking for a federal financial bailout are they?

Evidently, there is something the executives at Toyota and Honda are doing right that keeps their employees happy and their cars on the road with a high level of customer satisfaction. Additionally, Toyotas and Hondas maintain high resale value and obviously, consumers like that. Why? Because first and foremost, people want quality products that are reasonably priced. This is not only true in America, this is true of consumers all across the globe.

America likes to portray itself as the quintessential capitalist model. A free market initiative society where anyone can make money if they try hard enough, but is this really true?

It seems to me that in a free market society, companies should be awarded for quality and innovation and not bailed out for improper management and lack of vision. And furthermore, I believe that all of the high priced corporate executives should have to surrender (or at least put up for collateral until things get straightened out) some of their cars, planes and properties, such as their huge villas and luxurious vacation homes in exotic locations all over the globe.

Perhaps they should be dealt with according to the Racketeer Influenced and Corrupt Organizations Act also known as RICO, especially if high level executives knew that the companies were hemorrhaging money, and continued to keep their common low-level blue collar workers in the dark.

In all financial schemes, those at the bottom of the pyramid always end up carrying the burden for those who are at the top. It is time to eliminate the pyramid schemes and move on to something better, something that destroys the old ideas and replaces them with newly refined minds filled with innovative ideas so that they can be free to implement their sharper visions.
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