Failures Helped

Obama stated that "the auto companies must not squander this chance to reform bad management practices." But in business there is something called throwing good money after bad and this is what the Bush-Obama gang doing. Obama went on to state that this is a "critical industry." Why it is critical he did not say. Today, it is not a critical industry to the U.S. It is a regional industry that has squandered its preeminent position in the world. The only thing America gets out of it are the things that interest Obama: "the millions of American jobs," meaning of course, voters that he will obtain as a result of additional fiscal irresponsibility as in comparable periods of economic instability.

And why is the industry unstable? A number of factors could be mentioned such as the addiction to building gas guzzling SUVs that America did not need at the time of a fuel crisis. Another problem is the lack of Detroit to grasp that they needed to be competitive with practical, fuel-efficient, foreign cars. Detroit lost many Americans who would have preferred to buy American products when they failed to be attentive to issues of quality. Rather than investing in hybrids, Detroit allowed the foreign car manufacturers to scoop up that market. The benefits paid out to American workers, because of the Unions, priced themselves out of a competitive employee market. And last but not least, Ford CEO Alan Mulally, who makes about $12 million, and the ridiculously high salaries paid to heads of companies who lead failing companies is just out of control. Detroit caused its own problems, violated free market principles, and no one, not even a Republican Bush will allow the market to rule the economy.