Thursday, February 04, 2010

Why Government Motors Is A Bad Idea

The double-speak of referring to GM, Chrysler and Ford as "American car companies" while all of those other automobile builders with strange names are making their product in the United States with US workers and supporting suppliers is just the tip of an iceberg.

Using the salvation of "American car companies" and by implication American jobs as justification for nationalization of GMC and Chrysler is duplicitous at best. It might be possible to justify some federal intervention with regard to underwriting of loans (if you were a government focussed sort) but the complete take-over of a major portion of an industry such as we've seen leads to potential for abuse of a free market.

Toyota is the largest auto producer in the US market. The cars have long had a reputation for quality and value. They simply overwhelmed the shoddy products of Detroit and captured market share. They are currently responding to a problem with throttle sticking on several popular vehicles very aggressively and at apparent great expense.

But, yesterday we had the Sec. of Transportation Ray LaHood "mis-speak" and say that "if you own a Toyota you should stop driving it." Well, we know what he meant. He was cautioning folks not to put off corrective action. What it sounded like, however, was a member of the Board of Directors of Government Motors telling citizens that the competion was selling dangerous cars and wise Americans shouldn't drive them. Maybe it was inadvertent. Maybe not.

Today there is this:

DOT Digs At Toyota's Top Dog

There is nothing wrong with DOT looking out for the safety of vehicles on the nation's roads UNTIL the government is the owner of the runner-up in market competition. Then you must ask if there is an ulterior motive for the scrutiny.

And that is what happens when you let the government reach beyond the responsibilities which it reasonably can assume from our Constitution.

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