Fail

It seems that the auto industry is all that can compel me to speak out via this forum. As I am sure you have all heard, earlier this week president Obama offered an ultimatum to present a great plan to congress, or face bankruptcy. As I have said multiple times before, I think it is finally time to face the music for GM and Chrysler in Detroit.

I hope everyone understands the gravity of the situation as the government essentially fired C.E.O. of GM Rick Wagner earlier this week. This is a government intervention in the private sector that is not a necessity to the economy as a whole (as the banking system was). This sets precedence for this type of situation to potentially happen again. We are sitting in the defining moments of the American economy today and what happens in these next few years, even months could shape the American economy for decades to come.

I must congratulate President Obama for not throwing good money after bad as some may put it. The government has given loans to the private sector before to stabilize the economy, but never have they had complete oversight of future operations, as denoted by the riddance of Wagner. As my father so eloquently put it, “Fool me once, shame on you. Fool me twice, shame on me.” Finally, the President has acknowledged that failure in the private sector may be catastrophic in the short term, but it may be necessary for long term sustainability. Maybe a failure now will pave the way for companies like Tesla Motors to shape the electric car industry in the Unites States, or maybe I am completely wrong.

Either way, I feel like had we acknowledged the depth of the auto industries problems months ago, we may not be out billions of dollars with the potential crisis in Detroit still looming. What would have happened if these companies failed three months ago and the government pumped the money that would have gone to the auto industry into employing Detroit citizens in public works projects that clean up the city and make it a desirable place for new businesses to want to locate? Could the short term problem turn into a long term success story for the city? Only time will tell, but for now, give Obama a pat on the back for acknowledging that maybe he was wrong earlier, and maybe it is not too late to correct the situation.

Detroit, and Obama, I wish you the best of luck. I look forward to seeing the scenario play out and I will be here every step of the way to criticize every mover you make. After all, that is the American way.

Peace,

Matthew James