Exit A2

Friday, December 12, 2008

Un-American


There I said it. Maybe some others are thinking it but I'll say it. Those United States Senators who voted down the US Auto Bailout bill are simply un-American.

It is unconscionable that these lawmakers can not see past petty politics and grudges to do what's best for this country and support our manufacturing base. People ask, "What is wrong with America?" I say this is what is wrong with America. I never thought I'd see the day that a majority of the Republican Senators would simply turn their backs on the citizens of their country. These same Republican Senators have wrapped themselves in the flag issue after issue but when it comes to rescuing a fundamental industry for our country - they turn their backs. America has lost industry battles on many fronts (find a piece of major electronic equipment manufactured in the US). How many industries can we loose and still maintain our leadership on the world stage? And of course, other countries around the world subsidize their major industries and provide financial support when they are in crisis.

Here's some additional food for thought:

* Sweden just secured 3.4 billion in loans for the Swedish auto group.

* Germany has a controlling stake in Volkswagon AG.

* Auto makers in Europe are requesting 54 billion in loans to meet new emission requirements.

* It's projected that the first quarter of 2009 will see the highest rate of home foreclosure in the US. How many additional homes will be lost if one or two car companies go out of business? Can you say gasoline on a fire?

* How many pensioners rely on their Chrysler or GM pension checks to have a viable retirement? If they don't have these pension checks, how will they survive? Who will support these elderly?

* The bad credit market continues to negatively affect all areas of business including the car companies. Is that their fault? When gasoline spiked to an unheard of (and criminal) $4+ a gallon, was that the car companies fault? It was almost an act of economic terrorism perpetrated on the US market.

* How will states that currently have our nation's largest unemployment figures like Michigan, Ohio, and Indiana remain solvent and pay for millions of additional unemployment checks? And consider the loss of the sales tax revenue as people without jobs have no money to fuel their state's economy? And the Colleges and Universities in these states will not receive the money expected from their State Legislatures which means that tuition may have to rise to a point where enrollment is impacted.

* In World War Two, it was this country's manufacturing base that helped turn the tide against Germany and Japan. Instead of building cars, Ford, GM, and Chrysler built jeeps, tanks, fighters, and bombers. We had the manufacturing infrastructure to do this. If heaven forbid, we found ourselves in another large scale conflict, how would we able to match output with countries like China that has a huge manufacturing capacity?

This issue should not be clouded by past mistakes. It should not be about grudges of union vs. non-union states. We need to ask ourselves if we want America to survive the 21st century. Do we want America to remain an important economic force for good in the world? This is as important as bailing out Wall street as the collapse of two of these companies would be devastating to Main street America and to our friends, families, and neighbors. Is it morning in America or are we seeing the sunset of a once great nation?

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Monday, May 05, 2008

Why Does Senator Barack Obama Hate Michigan?



Senator Barack Obama doesn't seem to like Michigan (I believe he's pointing at our star in the picture). He didn't want to help the democrats of Michigan have their voices heard by supporting some kind of primary re-vote. Of course, that wasn't in his best interest as he was satisfactorily ahead in the delegate count when the issue was brought up (maybe his tune will change if Sen. Clinton wins some more primaries).

But now, Sen. Obama wants to blame the Detroit auto industry for our nation's oil woes (see recent news story "Obama hits Big 3 on SUVs"). This is a well worn leftist doctrine to blame industry for nearly everything. You see according to this doctrine, industry is the faceless enemy out to rob us of our dollars, our freedoms, our future. Well I'm a centrist and I think the leftist doctrine is a bunch of hooey. What Sen. Obama fails to acknowledge is the "personal responsibility of each American" in regards to our environment and economy. The American consumer has had automobile choices (even from the Big 3) over the past decade that were reasonably fuel efficient. The American consumer voted with its pocketbook for SUVs and trucks. Well it is a free market (hear that Sen. Obama) and the American consumer wanted what its appetite demanded - large, hulking vehicles. The automotive companies simply met the desires of the consumers. Funny though, while Sen. Obama throws rocks at the Big 3, he fails to acknowledge that Toyota, Honda, Nissan, BMW and whole lot of brands also have large, hulking vehicles in their current portfolios. To borrow his own phrase "that's truth-telling" Sen. Obama.

The reality is the the stakes have changed. The world oil market has been infiltrated by speculators (like the housing market was until it went bust). Competition for available oil has increased because of a combination of world population and a thriving economies like those of China and some other emerging countries. Our own refining industry is overburdened. But in the end, we Americans are most to blame. We wanted what our psyches and appetites demanded - bigness. We Americans like all-you-can-eat buffets; biggie-sized meals; large McMansions; and big hulking vehicles. But Sen. Obama doesn't want us to look in the mirror. He would prefer to let us off the hook and shift the blame on to faceless industry. That's a shame. And that makes me question his overall judgment.

If Senator Obama wants to really establish some "truth-telling" in our country then he needs to call-out the American consumer. But he won't. Tell America that it needs to buy (more likely lease) more fuel efficient "available" alternatives (my suggestions besides the obvious hybrids: Honda Fit, Ford Focus, Toyota Yaris or this fall's Saturn Astra). Fuel efficient vehicles are sitting on retail lots across America gathering dust and pollen just waiting for a good home (though I hear a few are finally rolling off the lots since gas recently surpassed $3.50 a gallon). Now that's some "truth-telling" that I'd like to hear from Sen. Obama. Also, he needs to assure us Michiganders that he doesn't hate us.

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