Auto Bailout, where opinion is heavily divided on whether Government Bailout can help Auto Industry survive in US? I hold a different view.
Obama instead of giving loans to GM, Ford Chrysler to survive the crisis, should mandate wide spread car purchase. This will help GM, Ford, Chrysler (World Class Companies, which are only caught by crisis in surprise and every thing will return to normal when demand returns!!) to operate at viable level and help them tide the crisis.
For a start, Obama can
- Order upgrade of all Federal and State Cars to latest 2009 models of GM, Ford and Chrysler
- Mandate compulsory car upgrade of all the companies who take Federal loans for Bail out. This would include car upgrades of many banks, insurance companies, real estate companies etc
- Give to CEOs, whose pay cuts are proposed as Bail out pre condition, additional high end luxury cars as consolation
- Mandate Car Purchase for all companies who benefit from Stimulus Plan such as Infrastructure Companies, Capital Good Companies etc
- As an unemployment benefit, give a new car upgrade to person who has been unemployed for three months
- Donate US made cars as foreign aid to poor people of developing world such as India, China, Indonesia and others. This would upgrade living standard of millions of people
- Give cars as consolation for Home Foreclosures
- Award cars as incentive to Doctors and Physicians, who participate in Health care IT digitization project
- Award cars to households, who implement energy efficient practice and use renewables
- Reward cars to deserving and brilliant students as part of Federal education initiatives
- Mandate a Car purchase with every new Immigrant Visa Application
- Mandate Car Purchase for every job outsourced
- Persuade Other Governments to buy US cars as good will gesture in return of Americas Foreign Policy of promoting world peace
- Send Cars to Cuba as good will gesture to upgrade all their 1950’s antique cars
- Offer North Korea to abandon Nuclear Program in lieu of free US cars
- Mandate Car as prize money for all sports competitions (Golf, Tennis, Super Bowl...)
- Offer to give cars as Ransom to Pirates
So on…the more I think out of the car, the more ideas come ….
If Government Spending can return growth even at cost of huge deficit as being propagated by Governments around the world, this plan may well be viable. Even Cars Can Fly!!