Detroit to Obama: “More Money, Please!”

Posted on February 18th, 2009 in Uncategorized by Karl

Today the US automakers are out asking for more money. (See my last posting dated Nov 10, 2008.)  Talk about a giant sinkhole!   The bottom line is that the auto industry is the most non-competitive (?) industry we currently have.  Unfortunately, any money the Obama administration pours into this industry to try to “save” it will be wasted.  Detroit doesn’t need a Band-Aid.  It needs a serious overhaul, restructuring, and retooling so Detroit can start making cars that American want. 

Re-engineering car designs is the easy part.  (All we need to do is copy what Toyota has done.)  The restructuring I am talking about requires significant layoffs and union busting.  But let’s be realistic…Obama is no miracle man.  He is human and a politician. No matter how well-intentioned, he is definitely not willing to commit political suicide by confronting the unions.  There is no way Obama can (or will) stand idly while thousands of production workers get pink slips in Detroit. 

So we are stuck with Washington ineffectively writing checks to Detroit which essentially amount to inefficient welfare.