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Free cars! An answer to the economic recession

The so called Big Three North American auto producers may soon receive extraordinary monies from the governments of the United States and Canada to pull them out of bankruptcy.  The bailout is $14 Billion in the US, $3.3 Billion in Canada. A huge amount of money to throw at companies who have mismanaged any kind of monies they already had.

The Big Three claim that the money is needed because people aren’t buying their cars because of the recession or economic downturn or whatever you want to call it. Beyond considerations that maybe people are not buying their cars because of perceived lower quality or lower fuel efficiency compared to “foreign” makes, then I think there is a better solution than giving these corporations bailout money.

The real answer is free cars.

Buy new cars for people. Use the proposed bailout money to buy cars and give them to people in need, or people whose cars are over five years old or who currently have gas guzzlers. Kill two birds with one stone, so to speak. Better the environment and keep the factories producing.

Giving money directly to the corporations won’t keep the factories going, because people still won’t be buying cars. Just where will this money go? Who will they write checks to? By using the money to buy cars directly, then you will stimulate the industry and provide the desperately needed jobs of over a million people. At the same time, you will remove some older cars off the road and replace them with more efficient new cars. I imagine $17 Billion will buy a lot of cars and will keep the factories going quite a lot longer than providing the money to sinking industries who will still be stuck with non-moving stock.

The free economy is the future. See the February Wired magazine’s article from Chris Anderson: Free! Why $0.00 Is the Future of Business.

While we are it, use the other trillion dollars of financial bailouts to buy people houses and clothes and food instead of shelling out taxpayer money to the financial wizards who have already shown they can’t handle it. That will really stimulate the economy.

bailoutyk2(Source unknown. Just a little levity, I don’t subscribe to the idea that the Big Three make inferior products!)

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December 19, 2008 Posted by | economy | , , , , , , , | 4 Comments