"I wish they would only take me as I am" - Vincent Van Gogh               "How Can I believe in God when just last week I got my tounge caught in the roller of an electric typewriter?" - Woody Allen              "Our truest life is when we are in dreams awake" - Henry David Thoreau              "I took a speed reading course and read 'War and Peace' in twenty minutes. It involves Russia" - Woody Allen            "When promulgating esoteric cogitations, eschew platitudinous ponderosities" - Mark Rowan, my father            "Up, sluggard, and waste not life, for in the grave there will be sleep enough" - Benjamin Franklin             "What really interests me is whether God had any choice in the creation of the world." - Albert Einstein            "Welfare's purpose should be to eliminate, as far as possible, the need for its own existence" - Ronald Reagan            "It's odd that you can get so anesthetized by your own pain or your own problem that you don't quite fully share the hell of someone close to you." - Lady Bird Johnson              "I still want to be the candidate for guys with confederate flags in their pickup truck" - Howard Dean

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Graduate of the University of Oregon, Married for 4-1/2 years to my High School sweetheart. I am currently residing in Cleveland while I attend med school.

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    Wednesday, August 08, 2007

    The Government can save Detroit by butting out

    Dick Morris has some criticism for Nancy Pelosi and the Democratic majority in congress, stating that they have failed to address the issues they criticised Republicans over. He specifically states their failure to address a mandatory increase in mileage standards for US automobiles.
    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.


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