Capitalism is the economic system in which the means of production are owned and controlled privately, for profit...
The last two words are quite important: for profit. For one to seek a profit, one must have a certain amount of greed. Everyone has greed. Everyone wants more than they need. This is not uncommon. However, greed can become a lot more prevalent in a capitalistic system.
I've worked for corporations, and when decisions are based largely, if not solely, on money, then that corporation, no matter how much it claims to empathize with the people they've laid off, or with those whose salaries they've lowered, is motivated by greed.
Let's look at the auto industry. They've ran themselves into the ground. GM, specifically, had the opportunity to to initiate a new kind of vehicle that, if currently available, would probably be making them a lot of money right now. Of course I'm speaking of the electric car, specifically, the EV1. (For more thorough information on the EV1, watch the documentary, Who Killed the Electric Car?
Essentially, GM had the technology and the demand for this electric vehicle, which was introduced in 1996. That's right, over 12 years ago, this technology was available. However, GM thought this vehicle would actually make them lose money, due in part to its low maintenance cost (less parts, mean less repairs, means less profit on the cost of repairs). They claim there was no demand for this vehicle (which I believe to be a fabrication), but perhaps now they should take a look at gas prices. More than ever, electric vehicles are in demand. I know they couldn't foresee the future. However, if they thought there was enough demand to start the EV1 project in 1996, you'd think they might have foreseen a larger demand in the future. (Especially since gasoline won't last forever.)
I firmly believe that if the EV1 (or by now the EV12?) were still in existence, it would be holding together the auto industry in this tumultuous economic environment. Think about it. With a decade under its belt, the costs for electric vehicles would be down, making them far more affordable. Battery technology would have been vastly improved (and indeed it has been improved) to make vehicles go further than ever on a single charge. Right now, people would be buying these vehicles and the auto industry would be in competition (which is the essence of Capitalism) over who can make the most affordable, most efficient electric car. There would be no need for a bailout.
However, GM, in their greed, stopped the program and destroyed all but one of the EV1s. Now, there is no affordable electric car on the market and the auto industry is looking for a bailout. This bailout should not happen. No money should be given to the auto industry (let alone Wall Street). I know the damages would be catastrophic. I know people would lose jobs. I have relatives and close friends who would risk losing jobs. But the executives who ran these companies into the ground need to realize that they made a mistake. Sure, they know they did now, but taking away their money and their jobs would really drive the point home. (Not to mention the fact that all those who so adamantly oppose government regulation, now, finding themselves in trouble, go straight to the government, the very entity they demanded stayed out of their affairs.)
So, instead of giving that money to the auto industry, we could use that money to really help the middle class by giving those billions to those whose jobs were lost. This money could be used to create jobs (perhaps the government could sponsor the creation of a wind, water, and solar generated power grid?). This money could truly help those in need rather than bailing out the rich bigwigs who put us in this mess in the first place.
Besides, government giving away money and bailing out big business is much more socialistic in practice than putting higher taxes on the wealthy, who, presumably can afford it, and using that money to help fund public schools, road construction, libraries, and etc (Because, after all, that's how tax money is used). The free market is not free if government is giving money to the businesses that didn't know how to manage themselves. However, this does bring to the surface the whole argument that business does need to be regulated. Regulation is not government ownership or funding, and it is not control. It is a way to make sure an economic meltdown, like the one we're currently experiencing, doesn't happen.
Rough times are ahead, whether or not these industries get a bailout. In fact, giving these companies money in no way guarantees a recovering economy, and if the government is going to be spending billions of dollars trying to save the economy, why don't they put that money with the people who matter: the everyday, working, middle class Joe the Plumbers of the world instead of the people that put us into this mess.
my information was found:
in the documentary Who Killed the Electric Car?
No comments:
Post a Comment