Thursday, December 11, 2008

The Next Crisis for the Auto Industry?

Congress is now moving toward a proposed solution to the auto industry's woes, though the outcome is far from certain. The House has passed its version of a bailout, while a Republican-led filibuster looms as a possibility in the Senate. I hate to think of what the collapse of the auto industry would mean, not just in Michigan, but across the country. At the same time, we could easily just make things worse, unless we are---in the immortal words of Elmer Fudd---"vewy, vewy ceahful..."

From my perspective, the problem isn't the fact of government backing, it's all the baggage that this kind of "backing" will carry along with it. We've already seen how helpful the government has been to our financial institutions, with the "backing" they gave to Fannie Mae and Freddie Mac; I suspect that they would offer similar kinds of help to the domestic car industry.

It's said that an elephant is a mouse, designed to government specfications. I shudder to think what a car designed to please Congress, or a Czar answerable to Congress, would look like.

If I recall correctly, the peasants killed the last Czar...or, at least, stood by cheering while thugs promising them paradise did the actual dirty work. I'm not sure things will wind up much differently, in or out of bankruptcy, if we let Congress appoint the next one.

Meanwhile, while Congress dithers, other precincts are starting to report:

A Michigan Perpsective on Senator Shelby

JEFFREY CAMINSKY, a veteran public prosecutor in Detroit, Michigan, specializes in the appellate practice of criminal law and writes on a wide range of topics. His books include the science fiction adventure novel The Star Dancers, the exciting second volume in the Guardians of Peace-tm series, The Sonnets of William Shakespeare, and the acclaimed Referee’s Survival Guide, a book on soccer officiating. All are published by New Alexandria Press, and are available on Amazon, as well as directly from the publisher.

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