Archive for November, 2008

What’s wrong with saving American auto makers?


But why?

Next year when President Barack Obama and congress move to save the American auto industry they will only make things worse!

What’s wrong with protecting American jobs and giving Americans a chance? President Clinton instituted import taxes on forign steel. This raised the price of steel to a point where the American steel industry could compete. His initiative saved forty thousand jobs in the American steel industry at the cost of two hundred thousand jobs in other industries which could no longer afford to buy steel. Saving jobs is always at the cost of other peoples jobs.

Don’t most industries fail because their inefficient? Doesn’t inefficiency force the cost of their products above a competitive level? Isn’t it the evil CEO’s who steal all the money and the workers repeating repetitive mindless tasks that make all of the money?


The American auto industry is failing because congress protects monopolies of labor. A monopoly of labor is a Labor Union. American auto makers are forced to pay uncompetitive wages to government protected labor unions; wages three times higher then the wages of foreign auto workers. American automakers can’t fire anyone without the labor union going on strike. That’s not all congress already does to help auto makers, congress regularly imposes new emissions regulations, safety regulations, production mandates (like making hybrids) and every other conceivable madness. All of this forces factory retooling and product redesign. Oh! and I almost forgot more expensive steel!! Good thing congress is giving everyone a chance!

Instead of congress lifting regulations and opening labor anti-trust investigations. Congress and President Elect Obama want to restructure the industry and use tax payers money to give a massive injection of liquid capital so that jobs can be saved, jobs that are playing a large part in destroying the industry! But thats not all! They want to impose import taxes on foreign cars to give American auto makers a chance! But we have already talked about what happened when our government saved the steel industry (they actually saved the unions).

Couldn’t all of this be about votes? The more obsolete jobs politicians save, the more people who’s livelihood depends upon elected officials. Is it possible that it could all be a conspiracy? Of course not! That would be a vast left wing conspiracy! Pointing fingers and initiating investigations would be McCarthism! SO of course theirs no conspiracys. Their isn’t anyone who exists who would dream of undermining the foundations of government, of our prosperity, of our freedoms for the sake of personal gain. This is America and that would be silly. No junior senator from the rust belt would ever give tax payers money to save his constituency!

What will happen when everyone is saved – when everything is more expensive including our taxes?


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