10
Dec
08

The Car Czar & More Government Bailouts

According to the Washinton Post, President Bush and Congressional Democrats have come to an “agreed concept” for the auto-bailout.  The “agreed concept” calls for:

  • “…government to spe[n]d $15 billion in emergency loans to the car companies as soon as next week…”
  • “…President Bush to immediately name a car czar to oversee the bailout…”
  • “…the car czar would be required to revoke the loans unless the companies proved by March 31 that they were implementing a plan to achieve “a positive net present value…”
  • “…if the firms fail to make progress, the car czar would be required to submit to Congress a new plan to restore them to financial viability, the official said, including the option of Chapter 11 bankruptcy protection.”
  • “If no plan for the long-term survival of the companies were to emerge, the firms would be ineligible for any additional federal assistance”

Has there been any agreement as to how the auto industry has gotten into this situation?

Some say it is over-priced labor; others say it is one-sided international trade; yet others say it is cumbersome government regulations.  Perhaps all of these factors have contributed to the problem with all of these factors having 0ne thing in common: government.  Government writes the labor laws.  Government signs international trade agreements.  Government writes the regulations.

With government at the root of the problem, it is difficult to see how government can devise an adequate solution.  There may be a legitimate argument that government has harmed this vital industry; but, even if this argument is accepted, is the best remedy a bailout, coming from U.S. taxpayers, which imposes a measure of nationalization for this industry?

More importantly, what is the Republican position?  Republicans already went along with $700 billion credit bailout (with $150 billion of pork on top).

Free markets, anyone?  Of course not…no one believes in those anymore,…isn’t that what got us here in the first place?   Besides, the global economy could not take the shock if a free market correction were allowed.  Of course, we should willingly suspend disbelief brought about by the implication that allowing a free market correction implies that we are currently not operating in a free market.

So what about it Republicans?  Do we have a coherent position?  Is it based on any principle that might form the corner-stone for our Party as we propose solutions to this continuing economic nightmare or are we still “position[ing ourselves] for fancy titles associated with a losing effort”?  If Republicans are looking to go along with more bailouts, are they still just looking for the best way to pander instead of leading us back to prosperity?

Maybe Republicans should just cave-in to the media’s demands for bipartisanship, join with the majority of the country, hope for the best, and beg for Obama to save us.

Save us from what?

From ourselves.

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