The Government can save Detroit by butting out
The latest example is Pelosi’s refusal to bring up a bill with higher mileage per gallon standards for US autos. Detroit’s opposition to the proposal, and labor’s complicity, are a key reason why foreign cars outsold American made vehicles in the US market last month.
Pelosi is as much a slave to the special interests as Hastert was. And Dingell, the Michigan Congressman who blocks higher fuel efficiency standards (and therefore will not save Detroit from itself)...
I have a lot of respect for Mr. Morris, and typically find him very estute. However, I have difficulty believing that the government knows what US automakers should produce better than the US automakers do. While it is true that US automakers are struggling, it is not caused by their lack of understanding of what products to produce. Rather, a large part of their problem is the requirement of union labor. For example, GM pays nearly thrice the amount of health benefits for its employees than Toyota pays for it's American workers (not to mention the higher wages and other benefits). Such costs prevent the US automakers from producing competetively priced products. US tariffs on steel (and other commodities)
further increase costs, and further harm American automakers.
If the answer to US automakers' troubles was simply to produce more fuel-efficient cars, the free market would have steered them in that direction. Policy shouldn't dictate what needs to be produced, the market should. Ford, GM, Dodge, and others will be much more perceptive to demand than Pelosi and Kucinich.
It is naive to assume that the government has to "save Detroit from itself". The government--with policies supported by Democrats such as Pelosi--has set the stage for the US automakers troubles and inability to compete. Like so often, the answer is less government, not more.