I'm slightly left of center, and not too crazy as far as lefties go (at least I don't think so!), so this WSJ headline certainly makes me unhappy: Obama Prods Bush to Aid Detroit. Just say no, Obama, just say no.
I'm no economist by any sense of the word, but to me, this just stinks of bad policy. I favored The Bailout Plan, but I think the financial industry and the auto industry are easily distinguishable, and demand different approaches. The former demanded a government intervention; the latter demands a quick death at the hands of the market, followed by complete company overhaul and a new gameplan. Oh, and possibly breaking up that nasty autoworkers union, too.
It seems to me that the U.S. auto industry meltdown started long before the subprime mortgage crisis; its causes are deeper and more problematic than its current liquidity shortage. What problems? Ohhh, say, for example, the industry's inability to make cars that people want to buy. That might present a problem.
If Obama goes down this path, then he'll confirm my fears that he would pander to nativists / protectionists by giving a government leg up to U.S. industries that cannot compete with their better run, better managed foreign counterparts.
Again, just say no, Obama. Toyota 4eva.
1 comment:
I am an economist and I can tell you: bailing out a dying industry is bad news. Now the auto-industry holds a special place in US history, but Ford and GM have been struggling and subsidizing them will be an expensive and losing proposition.
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