American Dream
by Adriennevh

What is your definition of the "American Dream"?

I saw a lottery winner on tv the other day and he said "Now I can start living the American Dream."

Is the American Dream just to have a lot of money? Is it to have a big house and lots of cars and not working and just having things? Is Paris Hilton living the American Dream?

I grew up in a Middle Class home (single parent of 5), we had a house, a car, we never "wanted" for anything (except for non-necessaties just to keep up with the Fritz's). But I really think my mom had the American Dream. She was a hard working woman, who made her own way in the world, she saved her well earned money and invested in her future. She owned her own home, she raised her family (quite well, I might add), sent all of her children to parochial school and when she was ready, she was able to retire on her terms. After retirement she did quite a bit of travel both domestic and abroad.

The American Dream is what I think of when I think about what is going on with the Auto Industry right now. There are hundreds of thousands of folks trying to live the American Dream in Michigan, but for circumstances beyond their control, it may all come to an end.

I don't think of the Auto Industry going to the Government for a loan right now as a Bailout. It is a loan. It is not the first time it has happened.

From ProRublica:

In 1979 Chrysler suffered a loss of $1.1 billion. That year the corporation requested aid from the government. In 1980 the Chrysler Loan Guarantee Act was passed, which provided $1.5 billion in loans to rescue Chrysler from insolvency. In addition, the government's aid was to be matched by U.S. and foreign banks.

By 1983, seven years earlier than the scheduled deadline, Chrysler had paid back its loan with the aid of the guarantees from the U.S. government. The corporation bought back the 14.4 million stock warrants. A security entitling the holder to buy a proportionate amount of stock at some specified future date at a specified price, usually one higher than current market. This "warrant" is then traded as a security, the price of which reflects the value of the underlying stock. Warrants are usually issued as a "sweetener" bundled with another class of security to enhance the marketability of the latter. Warrants are like call options, but with much longer time spans -- sometimes years. (Washington Post) given to the government in exchange for the loan guarantee. Because Chrysler's finances had improved and its stock had bounced back -- it reported $1.7 billion in profits for the second quarter of 1984 -- the government netted a profit of more than $660 million from its bailout investment.

Can anyone reading this say they have never needed a loan? A bailout if you will? Did you take out a loan to go to college? To buy your car? Your house? Shit happens and sometimes you need someone to come by and give you a hand.

Am I biased because my roots are in Detroit and in the Auto Industry. Possibly. Am I treating this completely differently than I thought of the Wall Street Bailout (or Rescue)? Yes I am. As far as I know at right this moment, the Big 3 have not sent their highly paid executives on a multi-million dollar retreat recently. Do I think the Wall Street Bailout could have been handled differently? Oh boy do I ever! I think instead of giving a hand out to the banks to loan out even more money, I think the Government should have made one payment on each of the outstanding loans. That would have helped Main Street and got Wall Street a little lift as well. Grassroots. That's where things begin, you have to start from the bottom and let things grow, not start from the top and let shit roll down hill.

Back to the Big 3. There are many reasons given why people are leery of buying American cars. Taj refuses, he thinks they are completely unreliable and will not last half as long as a Foreign made car. @GoDOTchris watched her Honda Civic reach 200,000 miles this week. That is quite a feat. But it happen in Ford's and Chevy's as well. When are we going to stop looking elsewhere, for the cheaper or better? And start finding a way to make cheaper and better here? This is not the first time an American industry has been threatened.

From Wiz Bang Blue:

The American television industry ran into similar problems as well with better and stronger and more innovative foreign competition from Japan, where American brands like Magnavox, Emerson, General Electric, RCA, Quasar and Zenith all failed. While RCA was purchased by an European company, Zenith continued as the final holdout in the American television industry until they owed so much money to a South Korean bank to finance their losses in business that they were taken over by the bank and became a South Korean brand, and no American television brands exist today.

Is that where we want to head with the Auto Industry? What is left in America that we manufacture? Are Levi's the sole holdout?

What do I think should happen with the Auto Industry, well, I don't know for certain. I know that whatever happens, there needs to be something that forces them into the 21 century here in the US. There are many more Hybrid and alternative fuel cars made by the Big 3 that are sold overseas. They need to bring them here. If there is a loan made, there need to be terms and concessions from both the Industry and the Unions.

When you have a family member in trouble, do you not rush to their aid? I do and I know my family does. And when you broaden your perspective aren't all Americans family?

Tell me what is your idea of the American Dream?

Comments

 

Amen!

Amen! Amen!

Politics & News Contributing Editor
Queen of Spain

 

Ooh yes.

My American Dream has always been leading a life where just a little more was possible than the last one... science, technology, culture, provinder... longer lives, less disease, less struggle to stay alive, more evolved behavior between people, less fear of homelessness, violence and starvation.

The thing is - we usually talk of American Dreams as 'per person' or 'per family' - but we forget that American part. The reason it works here - the reason we don't say Bolivian Dream or Congolese Dream - is because we don't do it alone. We do it as a country.

Is a Mark Twainism that a bank is a place who will loan you an umbrella when it's dry and demand it back when it's raiining?

You need an umbrella when it's raining. Lord have mercy... it's raining. 

Lucretia (aka GeekMommy)

Raising a child in a digital world, still a digital girl

 

It's not just Big 3 that will "die"...

I am a child of GM--my dad worked there for over 43 years. So, I am incredibly invested in what happens with this. People sometimes forget that it's not just the employees of these companies (GM, Ford, Chrysler) that will be affected, it's suppliers, their suppliers, other companies who work with these companies, and most importantly, it's entire towns. Millions of people will be affected by this and I wonder if that's not obvious enough to everyone who is against it. You think things are bad now, wait until they go under and see how bad it gets. I am the first to say that things need to change and the companies need to be more competitive and nimble, but lets not throw all of it away.

 I hope they survive. I pray that they survive.

suzi

 

scary

That's the part that scares me.  The trickle down effect.  How many different industries will this hit.  If we stop manufacturing in the US, then what will we do? 

 

I Am Totally Torn on The Big 3 Getting A
"Bailout"

I am for the "bailout" (which I agree will serve as a bridge loan, not a hand-out) STRICTLY in terms of employment. I think letting these companies go under and putting millions of people -- here and abroad -- out of work would be disastrous.

HOWEVER.

I am really angry at the way the car companies have been managed.

I HIGHLY recommend reading David Halberstam's "The Reckoning." (About the rise of the American auto industry, the unions, and Japanese auto manufacturing.)

The REASON that Chrysler needed a loan almost 30 years ago is the SAME REASON it needs a loan now. Not because times got "hard," but because the organizations REFUSED to innovate. REFUSED -- actively lobbied against, in fact -- to accept that the gas-guzzling models would ultimately do more harm than good. And when consumers could no longer afford the fuel-inefficient, luxury vehicles...well.

In the 80s, they turned to Japanese cars. Just as they turned to Japanese electronics in Adrienne's example.

Now it's 2008 and instead of learning their lesson, the auto executives repeated the exact same mistakes.

The SUV culture propagated in the 90s was not sustainable. Not economically, not environmentally. But the car companies did everything they could to squash alternative-energy vehicle production.

They willfully ignored the cyclical nature of the economy and consumerism, and now they're paying the price. Except they're trying not to.

I don't want to see millions of people out of work, but I would like to see the hundreds of high-level auto executives ousted.

Maybe next time?

---
Kristy Sammis
BlogHer's Conference & Event Planner
e. kristy@blogher.com

 

Conditions

I totally agree that there has to be conditions and compromises in this loan.  When I read the Annual FInancial statement and saw that Mullally (FORD CEO) took home the equivalent (in salary and perks and bonuses) of more than $27,000,000 last year my first reaction was WTF? GIVE IT BACK!  So that is something that des[perately needs to be addressed. 

The hoopla over him (and other CEO'S) using a private jet, I think is unjustified.  In this instance they were on their way to a Senate hearing, let's take commercial, oops that flight got cancelled, or delayed or we oversold and YOU got bumped.  Not exactly an efficiant way for them to travel. 

And yes changes need to be (and have been) made in the types of cars that the Big 3 offer.  Specifically for Ford I know that they (as a parent company) are the leader in PZEV vehicles.  That the Escape was the first AMerican made Hybrid available in the US and that around the world they have more Hybrids and alternative fuel vehicles.  But until the gas prices rose to astronomical heights, the AMerican consumer wasn't interested in Alternative Fuel, they wanted their big ass SUV.  Even the Prius, you hate to be put on a waiting list because Toyota didn't manufacture too many because the call wasn't large enough for them.

 Sheesh, I coulda made this a whole another post.  I'll shut up now.

 

Shunned Innovation

Excellent post and you've softened my perspective considerably. However, I gotta side with Kristy on this one. Sadly, the willful ignorance of the auto executives is now threatening the livelihood of millions of hardworking Americans. Why? Pure greed. 

For decades
now, since the Nixon era actually, there has been a call to lessen our
dependence on foreign oil. How do the Big Three react to this? They
flood the market with SUVs and put out the Hummer.

All along,
these companies have had access to technology that could seriously
reduce our usage of oil and they have dawdled with it. In the end, they
took the low road that led to higher profits for the industry and the
oil companies. They should be ashamed.

In 1990, GM
debuted the EV1 at the Los Angeles Auto Show, the first car with
zero-emissions marketed in the US in over three decades. The vehicles
were marketed through dealers located in only a few regions (e.g.,
California, Arizona, Georgia). The cars were only leased, not sold.
Though demand was high, GM ceased production of the vehicles and all
the EV1's were destroyed or donated to museums or universities.

A colleague reminded me today to view the documentary, "Who Killed the Electric Car?"
which delves into the short life of this GM EV1 electric car. Asks the
film's tagline: "How could such an efficient, green-friendly vehicle
fail to transform our garages and skies?" Once again: Greed. As long as
there are still fossil fuels trapped in the earth, people will pay big
money to find it, sell it and burn it.

I hope and pray that these companies, for the sake of their employees, find a recovery solution but much of this mess was brought on by the companies themselves. 

~ClizBiz 

BlogHer Contributing Editor, Animal Concerns, Proprietor, ClizBiz

 

Greed and the auto companies

Greed pretty much sums it up, this has been going on since the 1970's. But..... we can't go with the off with their heads model because if these industries go down they take too many with them. About 239000 jobs go if they go down, the list of related industries that would face problems is as follows: iron, steel, plastics, rubber, glass, computer chips. I don't pretend to know the answers here and I don't think they should get a handout with no strings attached, but I think it will be very ugly for this limping economy if they all go down. Capitalism works well until GREED begins to rule all.

 

I agree they need support to

I agree they need support to be able to stay viable. I find it interesting that people want strings put on the automakers that have yet to be put in place for any of the financial bailout money.  We don't even know and have basically been told we will not be told who got the federal reserve money. 

Let's also remember that the reason the automakers made all of these big vehicles what that people were buying them, lots of them.  The tax code is written so that people are encouraged to buy them.  The CAFE standards are written excluding them so of course they made them. 

I don't think the people who oppose this out of hand have any idea what happens if these are actually allowed to crash and burn. Mark my words it will be the worst possible recession anyone has heard of and I wouldn't be surprised if over time it was called a depression. Remember this is not just the automakers but their car dealerships and service techs and financing arms and parts manufacturers and tire makers and well, you get my point. 

Kate

I blog at http://www.aftercancernowwhat.wordpress.com 

 

Interesting

 "I find it interesting that people want strings put on the automakers that have yet to be put in place for any of the financial bailout money.  We don't even know and have basically been told we will not be told who got the federal reserve money."

I too find that interesting.  I sure as hell wanted strings attached to the money for Wall Street but those senators didn't ask my opinion.  It is a thought that perhaps they were so eager to jump on that one with "no strings attached" because alot of THEIR money was in jeopardy.  In the auto industry, it doesn't hit any of them personally.

 

Symptomatic, NOT a seperate issue

For the people who are directly affected this migth be hard to accept but this is NOT a seperate issue and it needed to happen.

It shows that companies, us, the world has been living an unsustainable life style for far too long and we all closed our eyes and were hoping or praying for the wrong thing. Kiss it better.

The whole manufactruing and commerce world needs a collapse and total rebuild.
How could we sustain what was going on. More, bigger better for a growing smaller part of the world. 

In the book 'Presence' CEOs of large corporation declare in private that the growth they promised to stakeholders was unrealistic. However positive goals and predictions were expected of them, because if they told that a growth of the rate the shareholders expected was beyond possibility, they would get sacked.

So they complied and kept their job until their performance wasn't up with the prediction and another lier was hired.

Oh, how it shows the absurdity of the world we live in.

We need another intent for the American Dream, it is NOT about having things and money, it is about inner and communal abundance and wealth and mental and physical health and good food and love.
This requires a totally different outlook and explanation about life and a total different set of actions, agreements and rules to live by.
We need to work on an explanation of what is communal and inner wealth, and have us no longer being seduced by false promises we deep down know don't serve any of us.

A New American Dream starts with ME, and my willingess to question and learn to live into a new 'we' paradigm, with different intent and different actions.
How about sharing, generosity, and letting go of 'it is all about me'.
Even in relationships we fight for goodness sake, how can we be any better anywhere else. 

What we focus on we get.
If we focus on bad depression, we will do bad depression.

If we focus on this is a way to change for the better, we get a change for the better.

Instead of panic and being fearful, be still and focus on what is possible here.
Don't go for false promises that it will all get better, the old way is NOT sustainable.

Einstein said, no problem can be solved at the level it is created.

America, create a total different dream that is humane not economic based. 
And be gentle on yourself.
This was how we knew how to act, however with all the literature we can access different ways. 
AND we no longer have an excuse for blindly going back to the past ways of greed and looking good and going for the 'having'.

So begin to change the American dream, boldly and purposely for the good of all.
I am doing it here in New Zealand, you are not alone.   

Wilma Ham

www.wilmasblog.com

 

well said

You've nailed it Wilma, thanks

Kate

I blog at http://www.aftercancernowwhat.wordpress.com