There Are No Responses Yet. »

1. Comment by Jacob Steelman on 8 December 2008:

   I just finished writing a piece for lew rockwell.com entitled A Fateful Turn in which I called this bail out a nationalization of the car industry. I never expected that Congress would be so obvious. I really thought they would be more subtle but it is now clear Congress intends to nationalize the car industry in the United States. Effectively there will be one car company – the American Car Company. Soon the boards of directors of these companies will be changed, the execuives will be changed (Wagoner is already on his way out), then redundant executives and managers will be rationalized, there will follow plant closures and layoffs. This will become very ugly during the Obama administration.

2. Comment by mnolan on 8 December 2008:

   The Wall Street Journal and New York Times both covered a church service in Detroit for the big three (Detroit Churches Pray for ‘God’s Bailout’ , NYT, 8 Dec 08). I guess the czar could get a metropolitan or two and some priests to complete the package. After all, getting Big Three car past 100,000 miles seems to take divine intervention anyway . . .

3. Comment by Steve Hogan on 8 December 2008:

   I can’t wait to see all the improvements to be made with the Car Czar running the show. Imagine a company having all the efficiency of the Post Office, the responsiveness of your local DMV, the financial acumen of the Social Security Administration, and the probity of those in Medicare. Ah yes, Toyota is shaking in its boots!

4. Comment by Sheldon Richman on 8 December 2008:

   Steve, sounds like a Trabant coming down the line.,

5. Comment by Jacob Steelman on 8 December 2008:

   This is the same government in charge of running Amtrak and since the 1970s running Conrail until it was sold not too long ago. It is also the same government engaged in destroying lives and property in Iraq and Afghanistan. Not since the confiscation of gold in the 1930s have we seen such a take over of such a large portion of the US economy.

6. Comment by Carl Clegg on 8 December 2008:

   First, they will lend the money…but with the green strings…that is, the goverment will mandate more vehicles like the Cadillac Escalade Hybrid, a vehicle that WSJ says “is among the most irrational vehicles on the road”. Billions of tax payer dollars will be dumped into these “green cars” which of course will not sell. So, when the goverment finds themselves sitting on huge inventories, you know what they will do? They will force people to buy them. Here are three of their strategies. First, they will tighten car purchases by every level of government forcing them to buy only “American” cars. Actually, they pretty much do that already. When’s the last time you saw a policeman driving a Mazdaspeed3? Second, Congress will pass all sorts of tax incentives for people that buy American Green cars thus making them appear significantly cheaper than the unsubsidized imports. Third, democrats will raise import tariffs not only on foreign vehicles, but parts and vehicles made by “non-American” companies…even if the parts and vehicles are actually manufactured here. And lest we not forget the unions, they will pass a tax on any vehicle assembled by non-union workers. Brace yourself, the big bailout could profoundly impact the future not only of the automobile, but of capitalism — the way used to be.

7. Comment by Marc on 16 December 2008:

   The aristocratic gaze is perfect but a black uniform might be more in keeping with the times. Government always rushes in where angels fear to tread with invariably tragic results. Perhaps the big three will eventually be restructured as a single entity called Homeland Motor Company. The state, after all, has never had a problem with waiving its own antitrust laws when it controls and/or owns a stake in the endeavor.

Post a Response