By Norm Grudman - 11/18/08 05:28 PM EST
I have the solution for helping the Big Three auto manufacturers regain solvency. Though it initially may be costly, my plan helps them restore financial stability while at the same time aids the suffering American people and boosts the stagnant economy.
When any business falls on hard times, the first effort is to lower expenses and inventory to raise revenue. Sales of new cars are suffering for many reasons, and inventory is building.
My plan calls for a two-week halt of further manufacturing by the Big Three to stop their immediate hemorrhage. They should organize a national auto auction of new-car inventory that now swells the showrooms of dealers and restricts liquidity. Offer new cars at a starting bid price of half the selling cost and let the market determine the value.
Arrange for bailed-out banks to offer financing. Only individual U.S. citizens would be allowed to buy, and for personal use only. One car per family. There would be no dealer markups; they would receive a tax credit and a manufacturer credit for future purchases to cover losses.
The manufacturers would lighten excess inventory, which frees up needed operating funds, and the buyer would get a new car at potentially a fraction of its original cost. The plan would not only aid the Big Three but all the peripheral companies involved in the auto industry.
It’s a win-win. Money would flow in both directions, stimulating the economy, and there would be no need for government intervention beyond the tax credits. No giveaway to private business, yet an economic stimulus, taxpayer-free, to all citizens.
Delray Beach, Fla.
GINGRICH ON PALIN
Abandoned by GOP
From Robert B. Cross
(Regarding article “Gingrich: Palin won’t be future GOP leader,” Nov. 16.) Tell Newt, this old Republican wouldn’t vote for him for dogcatcher in Greenwood, Ind. If the GOP can’t find someone more conservative than McCain, they ought to quit calling themselves Republicans. I’d vote for Palin every day of the week. Of course, I’m an old dude that appreciates moral values and old-time honesty. The Republican Party has abandoned me.
From Jean MacAllister
Newt is dead wrong when he says Sarah Palin won’t be the top Republican pick. We are horrified that this pro-abortion, extreme leftist radical is going to be president soon. Organizations have already formed backing Sarah Palin for president in 2012. What Obama did, we can do.