CEO Think: The auto industry is in a financial crisis because of the economy… not because of gluttonous executive compensation and the excesses in every facet of operations… and certainly not because of poor management. We must have $25 Billion now, so that we can require an additional $50 Billion later.
Congress Think: The taxpayers must loan the U.S. auto industry $25 Billion. Congress will protect the taxpayers by attaching unrealistic and unenforceable conditions to the bailout.
Prudent Lender Think: Never lend any money, at any interest rate, under any conditions, to any entity which is on the verge of bankruptcy.
Creative Think: Every 2007 taxpayer who paid more than $10,000 federal income tax will receive a transferable voucher in an amount equal to 50% of the taxes paid. The voucher will be redeemable as a credit against the sticker price of any new Chrysler, Ford, or GM vehicle. Each voucher becomes a loan to the company which redeems it.
Analysis Think: If anemic car sales is the cause of the U.S. auto industry crises, then paying people to buy the cars is a better solution than giving the industry money. People will buy the cars that they want, not the cars that Congress wants. There is 100% accountability for the taxpayer money thus loaned. The taxpayers who pay taxes will receive some benefit. The U.S. auto industry is put back into business immediately, rather than being paid to wait until cars start selling again. If Chrysler, Ford, and GM cannot make money when people are paid to buy their cars, then the U.S. auto industry is not viable.
Tags: Auto Industry, Bailout, economy, executive compensation, Government Bailout
