Yesterday, I happened to watch Harry Reid, Nancy Pelosi and Barney Frank bluster on about the auto bailout and conditions that had to be met before the $25 billion dollars went their way. I howled out loud. I actually laughed b/c it was so hilarious. Granted, Big 3 management has more than their share of the blame as does the power of the unions but these Democrats in Washington need to consider their culpability in the failure(s) of the auto industry. They are trying to be tough on the industry when they are greatly responsible for maintaining the problem:
(1) CAFE(corporate average fuel economy) standards set by the government restrict free enterprise and limit vehicle choices; (2) the government's corporate tax rate, after Japan, is the second highest in the world. It's now at 35% or close to it. Ireland has the lowest in the world at 10% and industry is thriving. How do I know? It's a haven for foreign companies, that's how. It's no wonder these people want to go to The Emerald Isle. It's called profit. High corporate tax rates restrict competitiveness by the US on the world stage resulting in loss of sales then loss of jobs. It's a world economy, folks. (3) petroleum restrictions on domestic drilling. Automobiles use fossil fuels. It's a natural resource and we, in the United States have billions and billions of potential barrels to tap. Democrats want to move to a re-tooling of the industry and go green. I think they're talking about electric cars. I'm not a fan of plug ins and with the amount of domestic oil available why not utilize it while we can. In the meantime look into alternatives. Some of our congressmen have said, "why drill, it's going to take ten years to reap the results. In the same vein, "why continue to research cures for cancer. It might take up to ten years. Here's something else to consider about oil corporations. Prior to the last election I heard a constant drumbeat about Exxon, etc. and their excessive corporate profits. Well, Americans, who do you think does all the exploration to meet our daily needs? The oil companies spend billions to make our lives better. Correct me if I'm wrong but I think the oil companies make an eight cent profit on every gallon of gas. The Federal government makes anywhere from twenty cents to thirty cents a gallon for doing ABSOLUTELY NOTHING. Just as with your tax burden the Federal government takes what they want without your input. (4) the most important part of the bailout, according to Barney Frank, is to save the unions. He has said in the last few days his priority in the bailout is to save the jobs of the blue collar worker. The $25 billion is only a drop in the bucket, according to Frank. He further stated they(blue collar workers) will need up to $100 billion to survive. I'm suggesting the Democrats demand the UAW think about re-tooling their own contracts first.
In the final analysis, our Democrat congress lays down the law to the auto industry but they are the biggest part of the problem, not the solution.
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