Recently with the stock market falling and the global financial crisis, many industries have begun to run into trouble. The auto industry is one. GM and Ford motors have asked the government for a federal b
ailout. They believe that receiving money is the only way for them to stay open. Both companies have been cutting spending, letting employees go, and delaying future products. Even doing all this is still not enough to keep the companies afloat in 2009. That is why the auto industry wants to be included in the Bush administration’s $700 billion financial rescue plan. The CEOs of GM and Ford flew on the company private jet to Washington to beg for money. Does this seem a little ironic? If they are trying to cut spending why don’t the CEOs fly commercially and take taxis instead of limos? It makes no sense. However, the companies say that with the bailout they are going to change spending habits but how can one be sure? AIG was given bailout money from the government ear
lier this year. After receiving the money the top members of the company flew to California to spend a weekend in a nice resort to ‘talk things over’. The company spent ¾ of their bailout money getting massages, playing golf and trying to ‘figure out how to fix their financial problems’! That is crazy! This shows the government that giving bailouts isn’t necessarily going to help the company. I think that the auto industry should be given money to help with their financial problems. However, the government can not keep handing out money left and right so the CEOs of GM and Ford need to change their spending habits for 2009. What do you think? Should the government fund the auto industries bailout?
ailout. They believe that receiving money is the only way for them to stay open. Both companies have been cutting spending, letting employees go, and delaying future products. Even doing all this is still not enough to keep the companies afloat in 2009. That is why the auto industry wants to be included in the Bush administration’s $700 billion financial rescue plan. The CEOs of GM and Ford flew on the company private jet to Washington to beg for money. Does this seem a little ironic? If they are trying to cut spending why don’t the CEOs fly commercially and take taxis instead of limos? It makes no sense. However, the companies say that with the bailout they are going to change spending habits but how can one be sure? AIG was given bailout money from the government ear
lier this year. After receiving the money the top members of the company flew to California to spend a weekend in a nice resort to ‘talk things over’. The company spent ¾ of their bailout money getting massages, playing golf and trying to ‘figure out how to fix their financial problems’! That is crazy! This shows the government that giving bailouts isn’t necessarily going to help the company. I think that the auto industry should be given money to help with their financial problems. However, the government can not keep handing out money left and right so the CEOs of GM and Ford need to change their spending habits for 2009. What do you think? Should the government fund the auto industries bailout? 
1 comment:
This is a great point Alex. These types of situations don’t only happen with the government and auto companies either. Sometimes people just get caught up in their own world and think that once something is handed to them they can do as they will with it and expect it to keep coming. This in turn makes them not frugal about anything. It is unfortunate that people will take advantage of situations like this, especially in perilous times and they know that their company is hurting. Sometimes people need a reality check. If they cannot be responsible with the money that is given to them, then the government should stop giving them money.
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