Should We Bail Out the Dinosaurs?
Alabama senator Richard Shelby says No:
[Detroit is] not building the right products. They've got good workers but I don't believe they've got good management. They don't innovate. They're a dinosaur in a sense.
I couldn't agree more. But I also couldn't agree more with NYT columnist Frank Rich, who says Yes:
The U.S. auto industry is the cornerstone of American manufacturing. It supports millions of jobs, directly or indirectly, in a vast array of businesses...[The demise of any of the Big Three] would kill the jobs of entire armies of American workers.
So what to do? For starters, it's time to stop pretending that the vaunted Private Sector is some mystical zone whose infallible inhabitants always make the right decisions.
The Big Three are too big to fail. Too much of our economy depends on them. If taxpayers have to bail them out — and we do — we have to be far less squeamish about telling the know-it-alls in the penthouse offices how to run their businesses when it comes to standards in emissions, mileage, safety and quality.
Update: An op-ed piece in today's Boston Globe offers a third choice, and I agree with this one, too:
There is a third option: a government takeover of these companies with a mandate to make the green cars of the future.
And to no one's surprise, the first comment in the online version begins:
More Socialism....unbelievable!!!....
Better more pollution and job-loss.
Comments
I find it incredible that these people vilify socialism whenever health care for Americans is discussed, but have no problem bailing out failing banks just as long as the public doesn't reap any potential profits. The incredible stupidity, short-sightedness, the use of socialism as an unquestioned epithet...even after the election of Obama, you have to wonder when or if this country will ever wake up.
Message restored. Originally posted 11/16/08 at 3:16pm
Posted by: NYC Educator | November 17, 2008 09:13 AM
The S-word is so scary for some people to contemplate that they'd rather have all kinds of dire things happen to people (and themselves) than entertain any notion that in any way resembles it.
You really have to tip your hat to the conservative propagandists who've been scaring people away from perfectly sensible policies for decades now - policies that our friends in Europe and elsewhere don't have any trouble adopting.
Message restored. Originally posted 11/16/08 at 6:20pm
Posted by: abi | November 17, 2008 09:14 AM
I read an outstanding article summarizing...what (?)...Neal Young's opinions on how to save Big Auto. It was a insightful, well thought out piece based on his experiences with his venture Lincvolt. And now? I can't find the link. But his line of reasoning was largely the same as yours: Retool Big Auto with government assistance to produce just car bodies, and invest in new industries that just produce pure-electric, hybrid-electric, and alternative fuel engines.
Very interesting stuff.
Message restored. Originally posted 11/16/08 at 10:26pm
Posted by: Kvatch | November 17, 2008 09:14 AM
Sure is, Kvatch. Someone's going to take the lead in developing alternative energy in general and clean(er) car engines in particular. Doing so is good for the environment and good for the economy (as I believe Frogette said recently on Ragebot). I'd like that innovative country to be us.
Message restored. Originally posted 11/17/08 at 12:03am
Posted by: abi | November 17, 2008 09:15 AM
Here's the link to the article Kvatch mentioned. It was very interesting stuff.
In defense of GM, I'm not sure we should stop whatever progress they've made developing batteries to have them concentrate only on building bodies. They've invested tons of money (in spite of Lutz) along those lines and the rumor is that they've made a lot of progress. They're also working on developing hydrogen cars and fueling stations too.
Put limits on any funds they may get, but don't stop them in their tracks on the progress they've made so far.
Posted by: Kathy | November 19, 2008 01:32 PM
Kathy, thanks for the link. I don't buy everything Young is proposing. But I agree that if Detroit wants a bailout, they have to make some hard commitments in exchange. I also like the fact that Young is thinking out of the box - something that I honestly don't think Detroit has done in many, many decades.
Posted by: abi | November 19, 2008 09:18 PM