GM Bailout Funds Failures – Fund Success Instead

Written on June 12, 2009 by Garland Coulson

 

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I read that the GM and Chrysler bailout will now cost about $2.4 million for each job it saves.  This is obscene.  It is much cheaper to provide them with unemployment funds and retraining.

By doing this, the governments of Canada and the US are propping up the failures, companies that proved they can’t make it.   GM & Chrysler claims that the economy is the problem, but Ford, Toyota, and many other auto companies are weathering the downturn without asking for a bailout.  Interesting that two companies who embraced hybrids , Toyota and Ford are doing better than GM.  This is because they made better business decisions and listened to what drivers wanted.  And now they have to compete with companies that are using government money instead of their own.

Instead of funding these failures, governments should  fund entrepreneurs with new business ideas, including some of the ex-auto industry workers if they want to start a business.

Instead of blowing 2.4 million dollars each to try to save old style jobs, why not provide low interest loans to entrepreneurs in the $100,000 to $500,000 range?  This is  a range where venture capitalists don’t usually work because it is below their minimums.  Most of the money would be repaid with interest and overall, a well run program like this would cost very little and should be able to fund itself.

People who start businesses

• hire other people to help them as the business grows
• employ consultants, marketers, web designers, graphic designers and a lot of other people
• buy products, equipment
• use services like office space, phone, Internet, and advertising

In my case I pay – 4 freelancers each month for programming, support and  marketing services.  I  buy advertising,  products, computer equipment and, pay for hosting my web servers every month.

I help keep the economy growing.  If I simply worked at a job, I would be spending a lot less and these people would not have the income from me.

Companies like GM were originally started by entrepreneurs like me, people with vision who had an idea and planted it an nurtured it to grow.

But now it has grown into a large company who forgot to innovate.  It is rotten to the core and can’t survive.

So I call upon the governments of Canada and the US to fund creativity, not failure.  Plant the new seeds that will become the new GMs  and Googles of the future instead of trying to prop up the failed business crops from the last millenium.

Garland Coulson, “The E-Business Tutor”

Garland Coulson. "The EBusiness Tutor" is an Internet Marketing Speaker, Internet Mentor and Entrepreneur who teaches beginners how to succeed online.

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