Monday, November 17, 2008

The Problem with Bail-outs: Auto Industry

Smaller banks are already offering themselves up to the altar of the government bail-out in order to continue to be competitive in the banking industry - so the nationalization of our infrastructure is clearly underway.

But now the aging auto industry is sniffing around the empty coffers, looking to be bought out by the government - nationalize the US auto giants - nationalize 3 million jobs. To what gain?

Let's look at the 2009 Ford line-up... Their Hybrid cars are laughable in the MPG department, and they have not proposed one single alternative fueled (electric, hydrogen, etc) vehicle for 2009, 2010, etc. Their "Flex" vehicle does not even use flex fuel technology - and is merely a poor name for another standard automobile. They have become out of touch with the consumer, and are paying the price in lower sales and under performing product.

General Motors has an electric vehicle being introduced for 2010 under limited quantity, but it is coming at a cost of their entire SUV line. The markets are indicating a trend toward "other than gas" vehicles - and perhaps their innovators can incorporate the electric technology into their family vehicles. There is some hope with GM - driven by the free market.

Chrysler - well, I cannot remember a good vehicle coming off of their lines in some time!

All three auto giants are showing a sluggish response to market forces, little move towards structural overhaul of the corporate operations because of the market failures, and as such are being punished by the markets.

The auto industry is not failing - foreign automakers are thriving - staying on the cutting edge of automotive innovation. It is the AMERICAN auto industry that is failing for lacking innovation and ability to adjust.

Now steps in the government... The Government will potentially be buying up the US auto giants as part of the nationali--- oops... the economic assistance program... The US Government, an entity living beyond the intention of the Constitution, authoritarian in nature and poised for total control over the subjects of the United States, is contemplating ownership of the US auto giants. Assume, for a moment, that the US Auto Makers, in an effort to merely retain jobs, begin to pump out and continually flood the market with automobiles that NO ONE WANTS - all in the name of retaining jobs... The government will then BE BOUND to ensure that their workers interests are being looked after - and as such, would LIMIT the sale of foreign cars in the United States. US Citizens would be obligated to purchase US cars. Tariffs would be imposed on foreign auto industries - ultimately hurting the US jobs associated with their manufacturing operations within the US. Perhaps they would be forced, should they choose to continue to sell in the US market, to relocate headquarters to the United States and become a US Government subservient industry as well... all in the name of "continued competitiveness".

Dearest readers - the system is grossly broken.

The free market is no longer free. The US government has become a force unstoppable by it's subjects. The stage has been set for a world government, under the guise of world economic stability. We are witness to a world without borders being constructed before our eyes... a world where the rulers oversee the continued obedience of the pleebs - work to sustain consumption, consume to support our government, the government will ensure your freedom.

Work and Obedience ensures Freedom... where have I heard that before?

People - I implore your logic and reasonable thought on this issue! We are truly at a crossroads in our great experiment. One option, which has all the momentum, leads us down a road of continued governmental growth, continued governmental authority, and continued erosion of civil liberties across the board. The other option, which is in the minority, is to strive for the radical concept for which our founders fought - liberty... let bad businesses fail, let the people hold corrupt politicians and CEO's accountable in the court of law, let Americans get back to family value - not consumer/work values... tell the government to STOP taxing our land, STOP taxing our income, STOP taxing our success and the success of our families... Tell the government that enough is enough, that it is time to minimize, time for some introspection.

There is danger in a big central government. There is more danger in a large world based government. The only intent is to rule - there is no accountability to the citizen, because the citizen ceases to exist. There is no progress in government forced consumerism... there can be no innovation.

Perhaps John Galt had the right idea?

"I swear—by my life and my love of it—that I will never live for the
sake of another man, nor ask another man to live for mine.”
John Galt in
Atlas Shrugged

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