Let Big Auto Fail?

Really, let's think about it.

They've made whole fleets of useless, oversized cars. They've protested every attempt at imposing mileage standards. And now they're in trouble. They're prophesying doom and gloom for a whole plethora of vertically integrated suppliers and resources.

Here's the thing, though.

Either people want to buy those cars or people don't. Either people can afford those cars or people can't. All that government intervention can do is allow the automakers to make more cars that people apparently aren't buying.

Let's say that again.

All that government intervention can do is force more unwanted cars in to existence.

Why would we spend our national treasure in this manner? (Yes, I know it's actually low interest loans, but that still counts as money.) Why would we spend unwanted things in to existence? Why would we favour such use of precious mineral and energy resources?

If the big three automakers are failing, it's because they produce things that no one wants. If they want to attract more customers, make products that are desirable. Something in the fuel efficient, cost effective area might work better. If you want to save these companies, you're barking up the wrong tree. They have to save themselves.

On the flip side, it's just barely possible that we just don't need so many cars - or maybe we just don't need to be trading them in every two years. Maybe the credit isn't there to afford that lifestyle anymore. In that case, you're just building cars for nobody. Sure, the government can make them cheaper by floating low-interest loans through the car companies, but that's not going to make that big a difference.

Sorry, Big Three. If no one wants your products, why should taxpayers donate their savings to making them anyway?

It just doesn't make sense.

Recommend this Post