Driving on Empty
The fact that there is considerable dissent toward the notion of bailing out the Big Three automakers says just how far the industry has fallen. In the five decades since the fortunes of General Motors were inextricably linked to those of the nation, GM, Ford and Chrysler have in fact been in large measure responsible for driving the nation’s economy over the cliff.
That wasn’t their purpose, of course, but the side effects of their gargantuan greed and stultifying stupidity. Detroit and the vision thing are as far apart as any two concepts in our culture. The fault lies with the companies and the unions, and with the Congresses that put political purpose ahead of national economic health.
Here’s what we should do about it. First, all executives in both the companies and the unions should lose their pensions.
Second, a commission of intelligent manufacturing executives should figure out if the United States should even make automobiles. We have fallen so dramatically far behind Toyota and the others that a new American automobile venture might not be practical.
Third, the automakers and their failed suppliers should be under the control of a special corporation managed by someone smart like Warren Buffet or Paul Volcker. Their assets should be parsed line by line and evaluated for their current and future value, that is, sold to healthy companies – including foreign automakers – or converted to production of say, alternate energy equipment like solar cells.
Fourth, areas particularly hard hit by the failure of the auto industry – those that were virtual companies towns or counties – might be designated as in special need of help and provided with reconstruction tax incentives to encourage new businesses which would make use of the human resources in the area to establish operations.
A great many Americans are in dire financial straits. More will be joining them. Everyone should be treated fairly.
©2008 SetonnoteS
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