I’ve mused about the auto industry bailout all day. The Republican Senators defeating it [for the reasons they defeated it] was short-sighted and obstructionistic, for sure. But I’m not sure I’m for it either, for other reasons. On paper, bailing out people who have been as unresponsive as the auto industry feels like giving the high school coach with a 0-0-10 record a raise to me. And in perusing the history of the Great Depression, Hoover’s attempts to get things going by supporting existing industry was a dismal flop. The TARP bailout doesn’t seem to has been so successful either. But, sticking to the specifics of our own auto industry, anyone going down the highway knows that outside the market of big trucks [a first line vehicle here in North Georgia, including the one in my driveway], the auto makers have been making cars for the Cleaver’s and Ozzie and Harriet. What people buy are the Japanese cars that last and don’t guzzle gasoline. But Detroit has done little to adapt – at least it doesn’t show.
Something needs to happen. We can’t just get out of the car business. But I’m doubtful that they’re up to it on their own. I think I’m in the "nationalize" the auto companies camp [did he say "nationalize?"]. Our relationship with Carbon Footprint and Oil Consumption isn’t a very good Free Market to mess around with. It has performed about as badly as our defunct Commodities Market and Stock Market. And there are jobs involved – whole sectors of the workforce being put on the line by an industry that can’t give them a good day’s work. The whole American infrastructure and transportation system needs to be thought about systematically, and I’m skeptical that there’s any way in hell of what we call "Detroit" doing that. So I’m conflicted. I’m not a socialist or a communist, but I’m not opposed to the automobile industry being reorganized along lines that fit national priorities that are becoming increasingly clear. Ayn Rand, how do you like them apples?
Update: Fair enough…
Obama on Auto Bailout Fiasco
By Matt StollerHere’s his statement."I am disappointed that the Senate could not reach agreement on a short-term plan for the auto industry. I share the frustration of so many about the decades of mismanagement in this industry that has helped deliver the current crisis. Those bad practices cannot be rewarded or continued. But I also know that millions of American jobs rely directly or indirectly on a viable auto industry, and that the beginnings of reform are at hand. The revival of our economy as a whole should not be a partisan issue. So I commend those in Congress as well as the Administration who tried valiantly to forge a compromise. My hope is that the Administration and the Congress will still find a way to give the industry the temporary assistance it needs while demanding the long-term restructuring that is absolutely required."
Perhaps the revival of our economy shouldn’t be a partisan issue, but it is fact very obviously a partisan issue. I don’t know about you, but I am hearing from more and more friends who were laid off.
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