General Question

walterallenhaxton's avatar

Will retooling all of the auto industry take so many resources away from the rest of the economy that many companies will go out of business?

Asked by walterallenhaxton (888points) May 19th, 2009
Observing members: 0 Composing members: 0

6 Answers

hungryhungryhortence's avatar

Are you referencing the stimulus/bailout money given to the auto companies? I’d like to think the money will go to retooling factories and better model line choices but it probably won’t; I suspect the bailout monies will go to hedge against creditors who were closing in and the retention of more employees who would otherwise be laid off.

Crusader's avatar

Politicians currently profit from economic collapse, just as they profit from the government stimulation of said companies. Both Democrat and Republican. Third, Forth, and Fifth party Now!

walterallenhaxton's avatar

@hungryhungryhortence I am talking about the new fuel economy standards. They mean that the cars and particularly light trucks will have to be build differently. I don’t think most car companies have the resources to do that right away. 2 1/2 years is right away for that job. If they find the money somewhere there is still the question. How will the tractor, big truck and other industries fare when they need the same resources to maintain their businesses and there is both a shortage of them available and the car companies have bid the price of them up so high that they can’t pay for them.

hungryhungryhortence's avatar

@walterallenhaxton: the companies have the means. Ten years ago I was driving a domestic brand car that got 38mpg using gasoline, no reason they couldn’t have been able to far exceed that by now.

Ownage's avatar

I think we think about shit too much. Fucking STFU, be patient, and stop acting on every little change. Everyone needs to just let the market do its thing instead of scrutinizing every detail and bailing out to fix short run problems. In the long run the free market will always yield a better product at a lower cost than any other system. It is the most efficent way to allocate recources.

What happened in the 1800s when people didn’t have a stock channel on TV? My guess is they just did what they wanted as they saw best

My bad rant.

walterallenhaxton's avatar

@hungryhungryhortence They could increase everyones mileage and not just for the new cars real fast by getting rid of all that expensive alcohol that they are putting in the fuel.
It cause smog from evaporation. I have been using it to run a generator and you have to keep releasing it from the gas can because it pressurizes it and gas cans are not made for that. Also when you start to pour it that pressure makes the fuel spurt out and is not safe.

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