Goodbye Big 3

My latest article in the School Newspaper The Advocate


Detroit's Big Three - Ford, Chrysler, and GM-are once again marching on Washington, begging alms, for what will turn out to be one more taxpayer expense. Apparently, they have learned their lesson when it comes to public perception: Last week was a public relations nightmore for the automakers when it was revealed that the corporate fat cats were flying in on multi-million dollar private jets. This time, however, they will be driving a fleet of 'green' cars from Detroit to Washington. It seems much better, of course, to drive hundreds of cars 500 miles to show how they are becoming more fuel efficient.

These guys are becoming much better at begging for handouts, while getting worse at building cars.

One question no one seems to be asking is, if Congress does throw another $25 billion into the proverbial money pit, will this actually make the Detroit automakers any more efficient? Doubtful, since the main goal of Congress seems to be to incentivize automakers to be less efficient rather than more.

For example, the previous $25 billion promised to the Big Three was for retooling their factories in order to produce more eco-friendly cars. This was congress's promise to America to promote a greener nation. The problem is that U.S. consumers have not been inclined to purchase these cars - especially not anymore, with declining gas prices.

This will spur the American carmakers to come back to Congress in the future for another $25, $50, or even $100 billion. They would simply tell lawmakers they complied with all the stipulations on their money, and now they are in financial striats, again, because consumers don't want their products.

So what should be done? How about allowing these companies to fail? This isn't little league baseball, you know, where everyone is a winner. Sometimes failure is a good thing. We have forgotten that The Big Three only account for about 50 percent of car manufacturing and sales in this country. The other 50 percent is produced by Honda, Toyota, Nissan, and others. In fact, these companies have several factories all across America (employing over 100,000 Americans), pay American taxes, contribute to charity, the list goes on. Yet they are not seen on the steps of Congress asking for help. These companies are also suffering from a decline in demand, but instead of continuing to pour money into vehicles Americans no longer want, they shifted resources in order to create vehicles consumers would actually purchase.

The failure of one or more of The Big Three will obviously displace some workers and cause a slight downturn, temporarily. However, it will also allow for those resources that have been allocated inefficiently to find more efficient venues in which to rest.

This tradition we have of only buying American is absurd. In a global economy we should be looking for the best deals. Also, if Americans are to subsidize some automakers, why not give that money to the more efficient automakers to help them continue to be more efficient? General Motors is reportedly bleeding $6 billion a month - how long is this $25 billion really going to last these three companies?

It's time to do what the steel industry did at the beginning of this century: consolidate. Where there were 12 steel factories producing 75 percent, there are now three producing 80 percent, and this has been their most profitable decade ever. it's time to say goodbye to the Big Three and hello to The Big One.

Free Thoughts

Is it too late for freedom in America? As we continue down road after road towards socialism we make it harder to wane ourselves off of the welfare state we have all allowed to come into existence. Today, 40% of our GDP is taxed. After much reflection it becomes apparent that there is only a few narrow paths ahead of us. First, A decline and fall of America, see Edward Gibbons Book The Decline and Fall of the Roman Empire to see the eerie correlations. Second, is a military coup to overthrow our already statist government, economist professor Thomas Sowell and others have sadly professed to this possibility. Lastly, we can only hope for the possibility of an intellectual take-over by free minds. In an article by Gen LaGreca, entitled “The Declaration of independence 2008,” she rewrites one of America’s most sacred documents to show the horrible lose of individual rights we’ve given up over the last 100 years. Instead of attacking King George the III as Thomas Jefferson did in the original Declaration of Independence, LaGreca has pointed out the evils our own government has perpetrated.

I suggest everyone take a long hard look at where we are, and find the time to engage in a little intellectual activism. When some man or woman yells hysterically that we must have socialized medicine, stop and ask them ‘by what right do some individuals have a claim over others?’ When people say we must stop CEO’s from earning so much, stop and ask, ‘By what right can we stop productive individuals from earning their just compensation?’ And, worst of all, when we hear those many individuals claiming these things such as; healthcare, housing, leisure, jobs and more are rights and that we must all pitch in to help our fellow man. Stop and ask, ‘when did our country stop protecting individual rights and become a country of parasites and looters?’

I wish everyone a life filled with prosperity, justice, and freedom.