Dec 09 2008

Want To Kill An Industry? Let The Government Run It!

Published by at 10:41 am under All General Discussions

For those too young to remember the Soviet Union and its government run industries the one thing the USSR proved is how bureaucracies can destroy an industry. It takes bureaucracy so long to make changes (every decision is by committee and analyzed to death) that it doesn’t take long for the ‘government run industry’ to fall hopelessly behind the commercial competition. In fact, the car industry behind the old Iron Curtain produced some dazzling innovations in automative engineering.

Take the Trabant as one example of German engineering under government oversight:

Compare that to West German engineering of the same year and my point is stunningly clear:

Keep this in mind when Congress talks about ‘over sight’ of the US auto industry, which is in trouble because it is falling behind its foreign competition again as it is. The current bailout plans call for a death sentence to the US auto industry. A death that will be caused by a thousand cuts from the federal bureaucracy:

“We don’t want government to run companies,” Obama told Tom Brokaw on “Meet the Press.” “Generally, government historically hasn’t done that very well.”

But what Obama went on to describe was a long-term government bailout that would be conditioned on government oversight. It could mean that the government would mandate, or at least heavily influence, what kind of cars companies make, what mileage and environmental standards they must meet and what large investments they are permitted to make — to recreate an industry that Obama said “actually works, that actually functions.”

It all sounds perilously close to a word that no one in Obama’s camp wants to be caught uttering: nationalization.

No more Corvettes or Vipers (too fuel inefficient, can’t have that).  We will see endless rows of low powered trucks and SUVs (must be fuel inefficient!). All the cars will look like Audi’s and Volvos (the yuppie liberal’s view of a fine machine). The prices will sky rocket on the top end cars while the low end ones will be Trabant-like for the masses.

And through all of this the European and Japanese automakers will be making huge advancements and leaving the US auto industry in their dust.

To think these yokels in DC want to use OUR hard earned money to fund this idiocy! Change we can believe in all right.

5 responses so far

5 Responses to “Want To Kill An Industry? Let The Government Run It!”

  1. crosspatch says:

    AJ, LJ, somebody … they’ve arrested the governor if Illinois in the latest Democrat “culture of corruption” scandal.

    Government taking a stake in the auto makers makes sense in only ONE case … whichever auto maker makes military vehicles.

    We need a domestic supplier of tanks and trucks for the military.

  2. AJStrata says:

    CP, saw that. Will post later as more details come in.

    Agreed, military vehicles is the only purview of the Feds.

  3. momdear1 says:

    Think we have problems now. Wait til we get this new Car Czar appointed by a Chicago politician in charge of doling out $52 billion of our taxpayer money to the person’s of his choice. Lets see. $500 million to a hospital is worth a $50,000 kickback. Naw…That’s not going to be a big enough percentage to take care of all the boys down the line. Maybe those car maker big shots have deep pockets that can be tapped.

  4. […] of the military, the government is not known for quality or cost effectiveness. In fact, I wrote about the result of such action a while back: For those too young to remember the Soviet Union and its government run industries the one thing […]

  5. […] of the differences between the government products and those of private industry in a free market. I wrote about them once before: For those too young to remember the Soviet Union and its government run industries the one thing […]