American Autos Struggle
November 12, 2008
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The economy has no doubt been on the minds of almost every American for the past several weeks. The news media frequently reports about the government bailing out real estate companies and offering up new plans to bring the country out of its enormous crisis. An important question to ask is, what would happen should major auto companies continue their descent into economic failure?
It has been known for the past several years that United States automotive companies are being beaten out by the foreign autos. However, the game has changed now that our country as well as many others are in economic crisis. All automotive companies have been seeing dramatically less sales, mostly because the astronomical gas prices led us to drive less.
With the decline in sales the companies have been falling, along with the rest of the economy. Should the government step in and help the companies? The answer to that is “yes.”
If the companies are allowed to fail, the U.S. automakers alone (GM, Ford, and Chrysler) would put 335 thousand people out of jobs. Those unemployed people would find it hard to get a job, have less money, and conserve as much money as possible. With less money going back into country, the economic crisis worsens.
Should the government choose to help, the economy has a larger possibility to gain strength. The companies would be able to keep all of their employees and open more plants, subsequently creating more jobs. Those employees could now feed their families and purchase items that would help support the economy and keep the country afloat.