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# ## #Where does Governments Economic Intervention begin and Anti Trust Laws Cease to exist? The Creation of Socialized Businesses By Earl R. Lofland On December 4th Congress heard testimonies from the CEOs from General Motors. Ford Chrysler as well as from the Government Accounting Office (GAO) and economists who were attempting to obtain federal funding to assist with preventing their businesses from going into bankruptcy courts. Mr. Stephen A. Roell , CEO Johnson Controls (JCI) made a very
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### #Where does Governments Economic Intervention begin and Anti Trust Laws Cease to exist? The Creation of Socialized Businesses By Earl R. Lofland On December 4th Congress heard testimonies from the CEOs from General Motors. Ford Chrysler as well as from the Government Accounting Office (GAO) and economists who were attempting to obtain federal funding to assist with preventing their businesses from going into bankruptcy courts. Mr. Stephen A. Roell , CEO Johnson Controls (JCI) made a very sobering comment at the hearings regarding the bailout of the big 3 auto manufacturers and the impact that America would be faced with if the Government didn\u2019t provide them with 34 billion dollars that would only be a temporary fix for the failing American Auto Industry. In Mr. Roell\u2019s statements he testified that voting against or not voting at all not to provide assistance to the Big 3 automotive manufactures. Would result in the same outcome. Stressing to Congress that if only one of the major auto manufacturers were to go out of business, this would impact the entire economy drastically . Using as an example one of the companies which JCI has recently purchased.1 the company- a minority owned business.Pl as t ech Engineered Products Inc2 manufactured products for all of the major auto makers. Including 1 Auto-parts maker Johnson Controls Inc. has formed a joint venture to acquire the interior-product assets of Plastech Engineered Products Inchttp://online.wsj.com/article/SB121496223245121713.html?mod=dist_smartbrief 2 http://en.wikipedia.org/wiki/Plastech_Engineered_ProductsToyota and others. Mr. Roell also stated that JCI manufactured batteries for the big three as well as third party sales. Based on what is being sold as an economic crisis there is something that has been overlooked. Businesses will usually be resilient in times of crisis. And often times whenever there are companies which provide a vital service or product for another business. There is competition in purchasing that company by its competitors in order to strengthen the economy as well as the quarterly earnings from which a small company will achieve in the aggressive growth process of mergers and buyouts. The Government should be limited in the operations of the private sector. Which separates Government centralized planning from a Free economy funding through tax payer dollars to assist business mergers. And other business operations should be excluded. GM, Ford and Chrysler all have been an American icon since the early 1900 s. Separate Businesses competing with each other for the consumers buying interests. There is some history to look at on deciding what to do regarding assisting the private sector and businesses with Tax dollars. Harley Davidson 1931-1945 an alternative way of federally assisting failing businesses) Indian Motorcycle Company 1931 an example of free market restructuring ) Penn Central Railroad 1970 Franklin National Bank 1974Chrysler Corporation 1980 Airline Industry 2001 Continental Illinois National Bank and Trust Company 1984 Savings & Loan 1989 Each of these businesses at some point came to the US Government seeking assistance in a time when the companies were failing. Concerned with massive layoffs and their businesses folding, thus causing severe damage to the infrastructure of Americas Economy. Harley Davidson was established in 1903.3 Indian Motorcycle was established in 19014. Many may not have known that DuPont\u2019s owned major shares of the Indian Motorcycle Company Indian Motorcycle Company endured through a full decade of financial woes in the face of powerful competition from Harley-Davidson, Henderson, Excelsior, and very heavy competition resulting from the creation of the Model T Ford and other newly affordable automobiles Eleuthere Paul DuPont persuaded his brother Francis to merge the family s luxury car business with Indian and cease production of automobiles This was done at the start of an almost 12-year- long national nightmare.5 The Great Depression Harley Davidson Sustained the struggles resulting from this era while others like Indian Motorcycle Company eventually had to close their doors. HDI was able to sustain its business only through some restructuring strategies within the 3 http://motorcycles.suite101.com/article.cfm/harleydavidson 4 http://en.wikipedia.org/wiki/Indian_(motorcycle) 5 http://www.indianmotorcycle.com/History/HistoryHome/tabid/78/Default.aspxcorporation. Combined with assistance of the Federal Government. Although it wasNot through tax dollars being used through Loan Guarantees to bail them out. The Department of Defense as well as Federal and State law enforcement agencies and the Local Fire Companies contracted to purchase fleets of Harley Davidson Motorcycles . Harley-Davidson designed a three-wheel Servi-Car, model in 1931 that became very popular with police departments for traffic and parking enforcement and continued to serve as a Harley- Davidson standard for 41 years. World War II and the 1950s During WWII, Harley-Davidson produced 88,000 motorcycles for the war effort, including the horizontally opposed, two-cylinder, shaft-drive XA 750 model. (They were never sold to the public and only 1,000 were made.) For its patriotic efforts, the Motor Company was awarded four prestigious Army-Navy E awards. Indian Motorcycle Company going through the same era This resulted with Indian Motorcycle Company relying on the business to stay afloat through sales that was mainly through the private sector. Indian was unable to recover. After WWII the business began downsizing more and eventually in the late 1950's they began to close mass amounts of their dealerships and eventually in the 1960's they closed their doors. Keeping their Name but not making motorcycles. In the 1998 Indian again began discussing options to begin manufacturing their brand of motorcycles. Although they were unable to gain any momentum in sales and eventually sold the business out and is now a Business based in England. With plans to manufacture a motorcycle that is not the traditional V twin as they srcinally had designed and manufactured. The company again closed
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