Tuesday, November 11, 2008

Why I didn't vote for Obama

Before he even gets in office the democrats are pushing their real adgenda: sending a big pile of tax payer money to big business.

The auto industry is in big trouble because their business plan failed. The business plan: make and market high ticket gas guzzling SUVs. This strategy fell apart when gas prices spiked and demand for these monsters (and cars in general) went down. A bailout for this industry assumes that the auto-industry is a victim of circumstance, that nothing else could have been done to prevent this random act of god. That's an absurd assumption. The fact of the matter is, any high school econ student could predict the long term result of their business plan after half-paying attention to one lecture on supply and demand. People have been shouting about the stupidity of SUVs for decades, the auto-industry stuck their fingers in their ears and shouted.

The auto industry, like the credit industry made this bed for themselves, and now they're insisting that the american people sleep in it, and pay them for the favor. It's bad parenting. The auto industry is acting like a spoiled child, and supporting this bailout is enabling bad behavior and environmental irresponsibility on their part.

The auto industry and oil independence are conflicting interests, and Obama is already making it clear where his priorities lie. The blue collar union worker democrat imagines that the bailout will save their jobs, but the track record of free money to industries producing job growth (or preventing lay-offs) is dismal.

I say nationalize the industry. Yeah, it's socialism, it sucks and it's dirty, but i'd much rather see tax payer money going to overtly and transparently running an industry and taking the long term public good into account than to propping up short sighted profiteers who've come to expect free money when the obvious consequences of their bad actions come to pass. If the auto industry is too big and important to let the companies fail and die when the owners act like irresponsible fuck ups, then the auto industry is too big and important to be run privately.

1 comment:

spags said...

After working for over 10 years in the auto industry, I would completely agree. However, I'd take it one step further to say that they've been in bed with the oil industry. Why else have they had to be drug into the 21st century kicking and screaming against CAFE if they weren't in bed with the oil companies?

I love a recent commercial I saw from one of the Big Three companies, expounding on about their "great fuel mileage for its' class"; that being low-to-mid-20s-MPG for what is essentially a large station wagon. What a joke.

The US auto industry could have been at the forefront, offering electric and hybrid options. Instead, they went for immediacy and quarterly profit margins, and now they're paying for it. We haven't even seen the influx of Chinese autos which is sure to come. There is word that they have a serviceable car for under $4000; what will the US car corps do then?

Fall on their sword is the correct answer. Expecting tariffs and gov't $$$ is the real answer.