Investing In Home

I was back at Purdue (my alma mater) this week. On Wednesday, General Electric announced a partnership with Purdue around advanced manufacturing practices and technology, and that GE would be building a new jet engine manufacturing plant in the Greater Lafayette, Indiana area.  It was a big deal for Purdue and the community.  In the same week I read that BMW is investing and expanding in South Carolina and Ford is doing the same in the Midwest.  It's a good sign to see multinationals investing in the U.S..  We still have a ways to go as Shenzen, China claims now to be the largest manufacturing location for smartphones.  I predict that might change over time as well.  It's not an easy decision to invest at home.  It can be more expensive and the regulations around the environment, safety and labor can add to that cost, but once the plunge is taken, the reduced complexity of time, travel and cultures, can win the day. At least an honest discussion about the tradeoffs looks to be being held with certain segments of our economy. Here's to more and more of those decisions landing back to home.

Wal-Mart Needs A Government Bailout?

Now, what if Wal-mart was going under and asked for a bailout, what would we do? They employ more people in America than anyone else and if they went under, what would we do? We might have to return to the mom and pop hardware, grocery stores, local pharmacies, pet shops, record/CD stores, department stores? You mean, if Wal-Mart went under we might have to fill all of those Main Street store fronts again with real businesses? Naw, we wouldn't bail out Wal-Mart would we? But, we are going to bail out car manufacturers who are in a world of hurt because the cars they designed, built and marketed like crazy, no one wants? Of course there is the argument that people want and need to buy cars but because they can't get credit, they are driving their current cars longer and fixing them up versus trading them in. So, if that is true, then heal the wound of the credit market, not put a band-aid on the car industry. if there are only two US car manufacturers left, will I be harmed any more when I go to buy my Toyota Prius, my Mercedes SmartCar, my Honda Hybrid, my Lexus Hybrid, or my BMW Mini Cooper? This is a war that was lost back when Halberstam wrote "The Reckoning". Let's not waste our hard-earned tax payer dollars bailing out a car manufacturer who has rested on their manifest destiny laurels since the energy crisis of the 70's. We have better things to spend our money on! If car workers need to be helped, then let's pass along the bail out money to retrain and move them to become wind engineers or solar panel manufacturers. Retool those defunct manufaturing lines for wind turbines. I'm all for helping those who can't help themselves or bailing out institutions that if they go down, we all suffer directly like what was needed for the financial industry. In fact, that said, if Wal-Mart was going under, I might support that bail out. At least they continue to use their heft and leverage to keep prices down and influence the rest of the world. Detroit stopped doing that the day the foreign car manufacturers started manufacturing their cars in Kentucky, Tennessee, Indiana and other places and brought real change to the American roadways and Detroit ignored the warning signs.