I can fix the economy

[Samurai Goomba]

Think of a jungle or tropical rain forest. When a large tree falls, the light that was confined to the treetops shines down to the forest floor, giving energy to the smaller plants and helping them grow. If that tree were, just for an example, AIG or GM, then smaller companies would fill the gap left by the original giant.

Seeing as how giving these huge companies money didn't really work, the only other option is to NOT give them money.

Thoughts?

Holy shit, batman, not rewarding companies for bad performance with 60 billion dollar taxpayer bailouts? WOAH!!!

Actually understanding that GM will never be where Honda, and Toyota are? That they've been working with products design to prematurely fail for years and if they changed now would be too far behind in manufacturing skills?

Or perhaps reading Ralph Nader's book about GM eventually failing 40 years before they did? (Unsafe at Any Speed. Grossman Publishers, 1965.), eh?

Wait! I might have it! How about you take that 60 billion dollars and give 300,000 dollars to every single taxpa- *is shot*

Ultimately what it seems to be coming down to is a case of extortion. The big automakers are blackmailing the government into giving bailout money for their horrible performance in running their own companies into the ground by saying, "Well, you can not give us money, but then all our employees will be fired when we close. Hah hah! We got you by the you-know-whats! Now dance a jig for me, Mr. Obama!"

I say we seize the assets of the people in charge, close down the company and give generous severance checks to all the employees from the bank accounts of the people responsible for ruining the companies in the first place.

Well, I would say that, but I still sorta believe in free enterprise and that seems a bit extreme. Maybe I should become the Punisher and mete out some justice?

 

[klakkat]

I don't think it'll fix the economy, but I think it is worth it to let the big fucking worthless companies die. Yes, it'll hurt the economy even more in the short run, but at least we can send a message that this is a capitalistic society and retarded corporations get to die like they deserve.

 

[TaborMallory]

There's a reason why the powerful companies stay at the top.

 

[Hoxton]

only supper man can fix the economy now, he would do that thing where he reverses time by flying around the earth backwords.

My bet is on the Lunchman.

 

[Paragon Fury]

Problem is this little thing called "World Economy Collape". You can't let the big companies go down, or they'll take large chunks, if not the whole world, with them.

 

[quack35]

I can fix the economy.

Could you get on that soon? Thanks.

 

[quack35]

Maybe I should become the Punisher and mete out some justice?

I like the way you think.

 

[Samurai Goomba]

Problem is this little thing called "World Economy Collape". You can't let the big companies go down, or they'll take large chunks, if not the whole world, with them.

Hence the current situation, where corrupt CEOs and board members get fat government bailouts because they have a gun held to the head of the US economy. In other words, extortion. If we don't give them money, they go under and put tons of people out of a job.

Which is why I recommend some Punishment be meted out to said corrupt officials on the side. We can't give them money they don't deserve, but we can't let them go under. Therefore we send the Punisher after the guys at the top and give everyone else their bailout money.

Spoiler

 

[bigolbear]

my humble opinion:

if the taxpayers need to bail out a company for the good of a countries economy then those taxpayers (via the government) are fully entitled to shares in that company equal to the value that was paid.

This way the people keep their jobs, the country will EVENTUALY make its money back that it had to invest the company stays afloat (although with a reduced market share and value)

This is the situation that recently happend in england with the major banking organisations. What many people failed to realise about this is that it effectively closes the loop - putting the ownership of the the money back in the hands of the people (the government being their representitive). this puts us in an unusual position politically we have not been in before where our political economic situation is a hybrid of both capitilism and comunism.

 

[beddo]

Think of a jungle or tropical rain forest. When a large tree falls, the light that was confined to the treetops shines down to the forest floor, giving energy to the smaller plants and helping them grow. If that tree were, just for an example, AIG or GM, then smaller companies would fill the gap left by the original giant.

Seeing as how giving these huge companies money didn't really work, the only other option is to NOT give them money.

Thoughts?

Unfortunately the economy is not this kind. These companies failed not only through mismanagement but also a significant drop in demand for their goods and/or services. Most of the demand for the products will be taken up by the direct competitors of these failed companies. Moreover, the massive capital and other resources required for these industries keep the barriers to entry high. The chances of new companies growing in their place is mitigated by this.

In regards to your simile, the Sun is essentially consumer spending, we're in a recession so the Sun has gone behind the clouds.

These companies were given money because they were owed favours by politicians. I'm afraid that corruption oils the wheels of government. The reason 'bailing' these companies out didn't work is because the companies' operations were unsustainable. They simply didn't respond to trends in the market. Bailing them out was just throwing good money after bad.

The Government spent something like $20 billion on GM, this would be over $82k per worker which would sustain most of them for about two years or so with reduced household spending. Instead the money lasted, at best, six months and the workers will still be left out of pocket.

The only way to save the economy is to leave it to it's capitalist ways, let companies collapse and get the inevitable recession over with rather than simply delaying it with short term 'stimulus' that willl just see the Government's position weakened.

 

[nova18]

If you genuinely could fix the economy, Im sure you would be working for EVERY GOVERNMENT IN THE WORLD by now, instead of posting on the Internet.

Step 1: STOP. Stop manufacturing everything in China because it's cheaper. Get that work back to your own country. Your taxpayers will thank you for it.

Step 2: ???

Step 3: Profit! No,really. Lots of profit,and lots of workplaces.

Pretty sure that wouldnt work.
China may be the largest producer, but it is also an EPIC consumer. Most countries rely on trade with China to maintain their economy, if you took jobs from the Chinese, then the Chinese people have no money to buy anything, meaning every country who exports goods to China will see a drop in their economy.

But I see where your going, it would free up millions of potential jobs.

 

[Acid Armageddon]

only supper man can fix the economy now, he would do that thing where he reverses time by flying around the earth backwords.

Supperman? What about Lunchman? Or Breakfast Man? They too deserve our respect!

 

[rainman2203]

Thinly stretched analogies aren't going to fix the economy.

 

[Lord Beautiful]

I don't think it'll fix the economy, but I think it is worth it to let the big fucking worthless companies die. Yes, it'll hurt the economy even more in the short run, but at least we can send a message that this is a capitalistic society and retarded corporations get to die like they deserve.

A fellow capitalist? Fantastic!

 

[space_oddity]

Since when is the economy broken?

 

[Ben Legend]

I can fix the economy.

No you can't. Idiot.

Allow me to explain what TheNecroswanson really meant!
Are you Gordon Brown?
No?
Then sit down! I need not explain.

 

[Samurai Goomba]

only supper man can fix the economy now, he would do that thing where he reverses time by flying around the earth backwords.

Supperman? What about Lunchman? Or Breakfast Man? They too deserve our respect!

What about Suppaman?

 

[Dele]

that is true it is what a lot of econimsts are saying that we need to allow these companies to fall so new ones that are not curropt can come into existance and give the people new work

So we let a company that employs lets say 60,000 people fall over so that small companies that employ maybe 30% of that figure give only a few certain people a job? So what do you propose we do with the other 70% of people that are still out of a job, pretend they dont exist.

Yes, there is a huge overcapacity in the global production of cars. Some of that capacity has to go and workers need to find new jobs.

The way you fix the global economy is get rid of bank debts and get people to start spending again. The more we spend, the more jobs we create. The more jobs we create, the more we have to spend. The cycle practically will feed itself once you get it started.

We also need to start investing in cost-cutting measures that will pay for themselves in due time.

For some reason, countries running on spending (North Korea, Cuba) and zero savings seem to disagree with you. Extra consumption must be backed by extra production, otherwise the spending is unsustainable (bubbles) and those fancy extra jobs you created are gonna vanish. You must understand that spending and jobs are not necessarily inheritly good things.

my humble opinion:
if the taxpayers need to bail out a company for the good of a countries economy then those taxpayers (via the government) are fully entitled to shares in that company equal to the value that was paid.

This way the people keep their jobs, the country will EVENTUALY make its money back that it had to invest the company stays afloat (although with a reduced market share and value)

Companies such as GM have no value. In fact their value is NEGATIVE as they require a constant feed of money from their owners to stay alive. Bailouts are little but transfer payments to workers of failing companies that are executed with the full understanding that government will NEVER get the full amount back and is lucky to gain even trinkets. This is of course a constant strain on taxpayers.