Be careful what you wish for…
December 15th, 2008Posted by: admin
While Detroit struggles to stay afloat, Democrats and Republicans are split on bailing out the car companies. Republicans claim that the auto industries brought their economic crisis upon themselves. While not a car industry buff, I figure it is probably true that they brought most of their woes upon themselves; but a big business friendly, Republican government did not help the matter. Over the years, the car industry actively fought stricter CAFÉ standards claiming financial hardship and the government heeded the requests, thereby not encouraging the extent of innovation required to withstand high fuel prices…and maybe a looming recession.
Democrats and Obama are eager to bail out the industry concerned about the loss of jobs that would occur if the companies went under in addition to, further economic troubles. In trying to appease Republicans in order to get the bill passed Democrats in the House agreed to drop a provision to force the automakers to end their legal challenges to state emissions standards, including a lawsuit in California (http://www.nytimes.com/2008/12/11/business/11auto.html?pagewanted=2&ref=business).
Yet, the new president-elect pledges to increase fuel economy standards and put one million plug-in hybrid cars on the road by 2015. Not to mention while a carbon cap and trade system will hit the energy sector harder then the auto industry, it certainly won’t ease financial costs on the auto industry.
It appears that the auto industry may be aided by government with one hand and then hit over the head with the other.
December 15th, 2008 at 2:50 pm
“Over the years, the car industry actively fought stricter CAFÉ standards claiming financial hardship and the government heeded the requests, thereby not encouraging the extent of innovation required to withstand high fuel prices…and maybe a looming recession.”
True? Sure, okay. But to suggest Republicans are partially to blame because they did not coerce actions that in hindsight would have been in the best interests of automakers is risible. My brother may be ignorant but it’s not my fault because I didn’t put a gun to his head and a book in front of his nose.
Furthermore, your characterization of a “big buisness friendly, Republican party” juxtaposes poorly with a Democratic congress dolling out corporate welfare.
December 15th, 2008 at 4:57 pm
With the recent passing of Gregory Peck, I was prompted to review his body of work. In 1980, Mr. Peck donated his abilities to a large US car manufacturer for free, in the hopes of preventing the layoffs of thousands of autoworkers. It struck me that for nearly 3 decades our society has been ‘pitching in’ to keep the automakers, the UAW and Detroit afloat, and they are now asking for more than ever.
They are coming across as spoiled children who just aren’t doing their chores probably, but keep whining for a bigger allowance. I think it is time for some tough love! Either they become profitable or we let them fail. I do not think we are doing the US any favors by constantly rewarding (bailing out) failure. It doesn’t appear that they have learned anything about running a successful business in 30 years!
December 15th, 2008 at 7:46 pm
“Yet, the new president-elect pledges to increase fuel economy standards and put one million plug-in hybrid cars on the road by 2015.”
How does a president put one million plug-in hybrid vehicles on the road by 2015?
December 16th, 2008 at 1:10 pm
Republicans are the party of small business and individuals. You might even look it up rather than rely on canards that harken back many decades. Look at Europe — big business and big labor love big government. Look at Robert Rubin, Geroge Soros, Warren Buffett, et al. The Democrats are far more reliant on large donations from the wealthy.
CAFE standards and the UAW are the two biggest factors in the demise of Detroit. Big government and big labor.