Well, I never thought this old (and I do mean old) reprobate, NY Keynesian economics liberal would have such a thought, but here it is. I don’t believe there should be a Big 3 auto bailout. I mean it’s not about saving an industry; it’s about saving politically connected corporations. You save these guys and every politically influential company in the country will be there with its paws out asking for dough. There already is a line up of salivating lobbyists and CEO’s pressuring for a piece of the federal bailout largesse. If the auto guys get bailed out, then everyone will have a legitimate shot. Look, what makes workers at Mervins, The Gap, Circuit City, Sun Microsystems or any of the other troubled companies inferior to GM, Ford or Chrysler workers?
The auto management bureaucracies and their union counterparts seem to have made every mistake in the books. Over the decades they were responsible for lousy car design and quality, too generous wage and benefits concessions and an overall bureaucratic lethargy on both sides unable to adjust to the realities of worldwide competition. Compare the innovations of German, Japanese and Korean designs to American. Detroit always seems to be catching up with the latest and greatest. Also, add the complicity of the fawning Michigan congressional delegation that, obeying its auto masters, battled against any of the environmental and competitiveness-improving car innovations. Do you really think that a bailout is going to change anything? It really only delays the inevitable.
In short, I believe these dinosaurs must go through the extinction of bankruptcy. We the public should not waste precious funds on life support. Whether they continue in business or not, cars will still be made in the US, and in time, talented, innovative, fresh thinking-new management will form new companies to build advanced-technology, non polluting cars that reflect the needs of the future.
Now, I don’t believe we should just leave the hordes of resulting unemployed on their own. Instead, take part of that proposed $50 bil. and make it available for a reasonable time to those people as continued unemployment, reeducation and health benefits. It will be a hell of a lot cheaper and productive for the nation than pumping dollars down that dry well, and, again, could lead to the revitalization of a newly dynamic, environmentally responsible, technologically leading industry.
So….let the patient die. Let’s get on with the tasks of turning things around! Incidentally, what make are you driving these days?
AHS
Laguna Niguel
