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Thursday, November 20, 2008

Michael Moore on The Auto Industry

From The Hoss's Mouth

auto industry
Michael Moore was Larry King's guest on CNN last Wednesday (Nov 19th) regarding the current auto industry crisis. Hoss Cents Money Magazine reviews the comments made by the renown filmmaker.

Moore does not accept the claim by the CEO'S of GM, Ford and Chrysler that the downturn in the economy is the cause of the auto industry's problems. He contends that the true reason for shrinking auto sales is the type of gas guzzling vehicles American auto makers have been producing and forcing on the American public. According to Moore, today's consumer is sophisticated and not prepared to accept being told what to buy, rather they recognize that hybrid vehicles not only save them money but also are more environmentally friendly than an SUV.

gas guzzling

The effect of one or all of the big three American auto manufacturers going out of business would be devastating. The big three employ about 266,000, the auto dealerships 740,000, and the auto supply industry about 610,000, for a total of about 1.6 million people directly associated with the auto industry that would loss their jobs. Moore sees this crisis leading to "the end of capitalism as we know it."

He suggests as a solution a similar approach to the one Roosevelt took during World War II. The auto makers were ordered to stop making cars and to produce items needed for the war effort. Similarly, Moore proposes the auto industry be provided the loan they request, but on the condition that they produce rapid transit vehicles and non gas guzzling hybrids, as well as other energy efficient automobiles. "After all," he said, "if you provide $25 billion for me to make a movie, you own the movie, not me." This would keep the auto industry and all its associated businesses afloat, with the added benefit of more efficient transportation methods and a reduced negative effect on the economy.


The Hoss agrees with Michael Moore. Just a footnote: Can you believe the arrogance of these CEO's? They arrive in Washington in their private luxury jets, asking for a handout. That's like driving a Cadillac to the welfare office to pick up your welfare check.

Stay on track,

The Hoss

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