The recent talks of where the money is going and how it will be wasted has been the cause of my growing !wrong! enduced headaches. The way our capitalist market system works is, company x loses money because customers would prefer to purchase better products than what company x makes. Lets imput this into the failing US auto industry.
Point #1. The US car companys blow in comparison to foreign automakers. This is because they make a less marketable product that doesnt last as long, and doesnt run as well. Due to this they push less product and lose more money. There are a number of thinks that could concievably happen to company x in their current predicament.
a. They go out of business
b. They get government aid
c. They make better more innovative products and win back their customer base.
Please forgive me for speaking in metaphore, but it just sounds better to me.
A boy opens up a lemonaid stand in his front yard and tends to it for a number of days with great success, he is the only one really making and selling this lemonaid and profits are booming. Then, after about a week or 2 of great profits, the asian boy next door starts his own stand. Now the difference between the stands is simple. The boys lemoniad is barely satisfying, only keeping its good taste for a while, whereas the asian boys lemonaid lasts for a very long time, keeping its sweet taste for hours. Everything runs smoothly for a while, but adventually the customors in the lemonaid market realize that asian boys is a lot better. So they naturally purchase the better product, putting the boy out of business. He has 2 choices. He can learn to make a better batch of lemonaid or he can just ask mom and dad for money. It would seem he would want to make better lemonaid unsuring years of profit instead of just a lump sum of cash to keep him in business making the same crap and still selling less than asian boy.
So my message to automakers and the government, is leave eachother alone the way youre supposed to. If the automakers want to stay in business, they will innovate and make some damn energy efficient cars, which will bring back the market. So get back to work you lazy idiots, and stop begging mom and dad for money.
And to the government, how bout taking all that money and burning it to give me some value back to my dollar.
Tuesday, April 7, 2009
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