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Poor and Stupid

How big government, big business, big media and big academia block your road to financial freedom- and tell you it's for your own good.

Throwing Anvils Into The Big Three's Boats

Posted on 02/06/2007 05:55 AM | Link | Post Comment
From my DC lawyer/lobbyist friend:
I suppose that the three most troubled companies in America are Ford, GM and the Chrysler division of Daimler-Benz. They've fallen and they can't get up.

They pay too much to workers who are retired. They spend billions to buy out current workers. They can't close factories fast enough. They can't easily close brands because federal law protect local dealers, but they know they make too many vehicles with over-paid workers with too many brands with too little distinction. They seem doomed. Much of their dilemma is seen as "their own fault." Yet, despite all, there is a sentiment to save them, or at least to help, as if there really is something of America wrapped up in a Chevrolet car or an F-150 truck.

Golly, with symptoms like these, the now-powerful Democrats must be ready to prove how they can come to the rescue. Don't they always throw money and love at the down-trodden?

Just listen to John Edwards, quoted in today's Wall Street Journal: "Mr. Edwards combined his Iraq message with a version of his stump speech from the last presidential campaign, evoking the plight of anonymous forgotten Americans like the "eight-year-old little girl (who) will go to bed hungry...because her father lost his job." Mr. Edwards almost never mentions his own political history -- especially not his 2004 race as John Kerry's running mate. This time around, he is even more a populist, and he closed his speech with a vow of solidarity with organized labor that drew thunderous applause."

So? All indications are that the new Congress will dramatically increase fuel economy standards; like it or not, this is a punitive action against these three companies. They all have the technology to comply, just not the customers or the efficency to do so without slipping further into financial trouble. Instead of a lifeline, the Democratic Congress is preparing to throw anvils into their boats.

Global warming is too important a problem after all. Imagine the reduction in this nation's carbon footprint if all of Michigan were returned to the forest.

This also means a healthy market for John Edwards. He can revive his theme about "two Americas", pointing first to theAmerican plants producing cars and trucks with badges such as Toyota, BMW, Honda, Nissan and Mercedes continue to set quality and sales records (ssh, don't mention the mostly non-union, mostly southern factories) and then, with a heavy heart, to the three near-terminally ill auto companies called GM, Ford and Chrysler.

If only he were president, the big three would get up and walk again.

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