All the Extra Wickenburg news you need to know !

BAILOUT  MIGHT HAVE YOU

 DRIVING A TRABANT

Surprise, AZ: Driving on Bell road stands a man with a large sign that reads " Cell Phone Bailouts" Cricket. Wow I can stick my current  obligation to my phone provider and get ahead. This is what the auto industry wants to do.

When did you not pay for a vehicle bought from the Big three auto makers. Never.

In a capitalistic society economic forces bring about change. Gas prices forced you to drive less or pay more. You adjusted to market forces.

The construction business has had to adjust to the slow down. Down sizing of employees and lowering of their prices  on homes have been part of their response.  Retail stores are adjusting by offering discounts or closing their doors.  Restaurants are offer great meal deals. The consumer has gotten more for their money.

This is how a market economy works. The winner in a market economy is you the consumer and this helps the greatest number of people in a society. The market place picks the winners and losers by what people choose to buy.

The Big Three auto industry needs to adjust now, not wait until 2011 as planned to make changes. United Airlines was one of the largest airlines in the world when they filed bankruptcy. Guess what, they adjusted to the market place and are still flying.

Volkswagen is building a new auto plant in the United States without government money. BMW, Mercedes, Honda, Nissan and Hyundai all have auto plants in the United States, without government money.

General Motors (GM) does not want to adjust.  They have beaten down their suppliers for lower costs that some have had to go into bankruptcy to adjust, (Delphi Corporation).

Last  February GM abandoned an estimated 500,000 vehicle owners who had ON STAR as of 1992 and before GM vehicles. Due  to the conversion of analog to digital cellular phones. GM make no attempt to offer a conversion option on these vehicles. At least they could have given a  $ 500.00 Certificate to buy a new GM vehicle that they would have made money on. GM has chosen to ignore reality and give up on 500,000 future clients.

That is why they want a bailout now, they do not want to adjust. Socialism rather than capitalism.

One of the most infamous automotive products of a socialist government auto industry was the Trabant. The car Time Magazine called " One of the 50 worst cars of all time"A car manufactured by a Socialist Government who picked the winners

In socialism the government chooses who wins and looses. The end result being inefficiencies in production, poor quality Consumers are not allowed the choice of what they want.

Phoenix Mayor Gordan has asked for $50,000,000,000.00 (50BILLION) to bail out the cities now. He even states that if money is given to the city that it would multiple ten times. Wrong, but it sounds good. The government is not capable of spending your money as efficient as you do. How about a 50 billion tax rebate.

Capitalism is based on winners and losers. Socialism is based on losers being chosen winners.

Figures lie and liars figure.

Robert Hipman

Economist