Monday, November 10, 2008
Between a Rock and a Rock
GM, Ford, and Chrysler, the American Auto Industry... needs a bailout. Given what was just done for AIG, Fannie, Freddie, Goldman, Morgan, etc... I won't argue that the Auto industry should not get some of the Government's largess. The idea of saving jobs in the Auto industry is a noble, if not misguided, effort. The idea of saving the PENSIONS of the UAW, or any employee of the Big Three or their suppliers at the expense of tax payers that have no such pension, no such health plan, is likely to be one of the causes of the coming political crisis (it just seems unlikely to me that we can have a credit crisis, stock market crash, housing crisis, and an energy crisis, etc... and avoid a political crisis - particularly if the other crisis' lead to a food crisis).
We cannot legislate that Detroit be the winner of an electric car breakthrough. Said breakthrough might come from some other corner, or not at all. We also cannot legislate a FUEL supply. Remember, we need FUEL - and we need said FUEL supply to keep on growing. If said FUEL supply should go into terminal decline/then we do not need a single addition to the U.S. automotive fleet. We have enough cars to consume our current supply at a 10% annual decline in oil imports.
Let me ask The Powers That Be in Washington:
What will we do with all of the cars that the jobs you "save" churn out if we don't have the necessary FUEL?
Central planning won't work. Unfortunately, the "Free Markets' are not working either.
The Fiscal stimulus about to come out of Washington really needs to be "energy" aware. If there was ever a time to "write your Congressman"... this is it.
Mentatt (at) yahoo (d0t) com
Posted by The Short Story Man at 4:38 PM