
 |
|
June 19, 2013
June 12, 2013
Stephanie Hanes: Little girls or little women? The Disney princess effect
Fred Weir: In tweak to US, Russia would 'consider' asylum for Snowden
June 10, 2013
The Kosher Gourmet by Anjali Prasertong: A tart filling so good it might not make it to the crust
June 5, 2013
John Rosemond: Mom, Dad: Talk More and listen less
Kristen Chick: Egypt court sentences 43 pro-democracy workers to prison
June 3, 2013
Molly Hennessy-Fiske: Military judge to consider letting Fort Hood shooting defendant represent himself
May 29, 2013
Andrew Connelly and Helene Bienvenu: The Little Synagogue that Refused to Die
May 24, 2013
Rabbi Tzvi Hersh Weinreb: When I didn't so 'humbly disagree'
May 22, 2013
John Thorne:
They launched the 'Arab Spring' but now yearn for the good old days of a strongman
May 20, 2013
Richard A. Serrano: Is Meir Kahane's assassin now a changed man?
Melissa Healy: Genetic copies of living people from embryos no longer science fiction
Jewz in the Newz by Nate Bloom : Jews Inducted into Rock Hall of Fame; Anton Yelchin co-stars in New "Trek" film; Kutcher (but not Kunis) visits Israel; Jewish TV Star Praises Jewish Rap Star
The Kosher Gourmet by Cathy Pollak: WARNING: This WALNUT CAKE WITH PRALINE FROSTING, perfect for afternoon coffee, is addicting
|
| |
Jewish World Review
Nov. 18, 2008
20 Mar-Cheshvan 5769
In Detroit, Failure's a Done Deal
By
George Will
| 
|
|
|
|
http://www.JewishWorldReview.com |
"Nothing," said a General Motors spokesman last week, "has changed relative to the GM board's support for the GM management team during this historically difficult economic period for the U.S. auto industry." Nothing? Not even the evaporation of almost all shareholder value?
GM's statement comes as the mendicant company is threatening to collapse and make a mess unless Washington, which has already voted $25 billion for GM, Ford and Chrysler, provides up to $50 billion more the last subsidy until the next one. The statement uses the 11 words after "team" to suggest that the company's parlous condition has been caused by events since mid-September. That is as ludicrous as the mantra that GM is "too big to fail." It has failed; the question is what to do about that.
The answer? Do nothing that will delay bankrupt companies from filing for bankruptcy protection, so that improvident labor contracts can be unraveled, allowing the companies to try to devise plausible business models. Instead, advocates of a "rescue" propose extending to Detroit the government's business model for the nation redistributing wealth from the successful to the failed, an implausible formula for prosperity.
Some opponents of bankruptcy say: GM must not be allowed to fail before it perfects batteries for its electric-powered Volt, which supposedly is a key to the company's resurrection. This vehicle was concocted to serve GM's prolonged attempt to ingratiate itself with the few hundred environmentally obsessed automotive engineers in Congress. They have already voted tax credits of up to $7,500 for purchasers of such cars bribes that reveal doubts about consumer enthusiasm for them at a price that would reflect cost.
| FREE SUBSCRIPTION TO INFLUENTIAL NEWSLETTER |
| Every weekday NewsAndOpinion.com publishes what many in the media and Washington consider "must-reading". HUNDREDS of columnists and cartoonists regularly appear. Sign up for the daily update. It's free. Just click here. |
|
Congress could help the Detroit Three by allowing them, when meeting CAFE (corporate average fuel economy) standards imposed by Congress, to count fuel-efficient cars they import from their overseas factories. Congressional Democrats oppose that because those imports are not made by members of the United Auto Workers. Those Democrats, their rhetoric notwithstanding, really care most about the union. "Saving the planet" comes second and last comes the health of the auto companies.
Some opponents of bankruptcy stress that it might terminate health-care coverage enjoyed by UAW retirees who are too young for Medicare. Think about that. If people want to retire before 65, or 35 for that matter, that is their business. But there is no public interest in protecting the luxury of retirement in the prime of life just because in palmy days a private contract between a union and a corporation established it as an entitlement for all seasons.
In his new book, "The Great Inflation and Its Aftermath," Washington Post columnist Robert Samuelson recalls that in 1950, when GM signed a five-year contract with the UAW, Fortune magazine celebrated this as the "Treaty of Detroit." Under "pattern bargaining," Ford and Chrysler struck similar bargains, thereby eliminating competition in labor costs. In 1950, the Big Three's share of America's domestic auto market was about 95 percent, Japan's and Germany's war-smashed economies were feeble, and the VW Beetle was a barely discernible harbinger of a huge threat. The Big Three and the UAW probably did not doubt the immortality of their oligopoly.
| BUY THE BOOK ... |
| 
at a discount by clicking HERE.
|
|
Six decades later, a "rescue" without bankruptcy will make those four entities wards of government. Doing so would make the five entities (including Washington) collaborators in unfair competition with America's thriving automobile industry that employs 113,000 Americans making vehicles containing many American-made components, but with foreign, mostly Japanese, nameplates. As Detroit continues to shrink, many American jobs "lost" will be regained in this industry, and its American suppliers, as Americans continue to buy cars. (Disclosure: Mrs. Will, who drives a GM product, is a public relations consultant for the Japan Automobile Manufacturers Association.)
The Economist reports that as recently as 2005, Americans bought more cars than did China, India, Russia and Brazil, combined. This year those four will buy more than Americans buy, but that is, potentially, good news for Detroit. In America's saturated market, there is almost one car for every person of driving age; in China there are three for every 100, and fewer than that in India. The Economist reports that in the next 40 years, the world's automobile fleet will surge from 700 million to 3 billion. After being restructured through bankruptcy, the Detroit Two, or One, might flourish. Let's find out. The ruinous alternative is to squander, in a doomed attempt to "save jobs," more scores of billions of dollars of scarce capital that will then be unavailable for job-creating investments in rising industries.
Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
George Will's latest book is "With a Happy Eye but: America and the World, 1997-2002" to purchase a copy, click here. Comment on this column by clicking here.
Archives
© 2006 WPWG
|
|

Arnold Ahlert
Mitch Albom
Jay Ambrose
Michael Barone
Barrywood
Lori Borgman
Stratfor Briefing
Mona Charen
Linda Chavez
Richard Z. Chesnoff
Ann Coulter
Greg Crosby
Larry Elder
Suzanne Fields
Christine Flowers
Peter Funt
Frank J. Gaffney
Bernie Goldberg
Jonah Goldberg
Julia Gorin
Jonathan Gurwitz
Paul Greenberg
Argus Hamilton
Victor Davis Hanson
Betsy Hart
Ron Hart
Nat Hentoff
A. Barton Hinkle
Jeff Jacoby
Paul Johnson
John Kass
Jack Kelly
Ch. Krauthammer
David Limbaugh
Kathryn Lopez
Rich Lowry
Michelle Malkin
Jackie Mason
Ann McFeatters
Dale McFeatters
Dana Milbank
Jeanne Moos
Dick Morris
Jim Mullen
Deroy Murdock
Judge A. Napolitano
Bill O'Reilly
Clarence Page
Kathleen Parker
Star Parker
Dennis Prager
Wesley Pruden
Tom Purcell
Sharon Randall
Michael Reagan
Robert Robb
Cokie & Steve Roberts
Heather Robinson
Debra J. Saunders
Martin Schram
Greg Schwem
Culture Shlock
David Shribman
Roger Simon
Lenore Skenazy
Michael Smerconish
Thomas Sowell
Mark Steyn
John Stossel
Cal Thomas
Dan Thomasson
Bob Tyrrell
Diana West
Dave Weinbaum
George Will
Walter Williams
Byron York
Cathy Young
Mort Zuckerman

Eric Allie
Robert Arial
Chuck Asay
Baloo
Nate Beeler
Lisa Benson
Chip Bok
Dry Bones
John Branch
Daryl Cagle
Patrick Chappatte
John Cole
Paul Combs
J. D. Crowe
John Darkow
Bill Day
John Deering
Sean Delonas
Brian Duffy
Everything's Relative
Randall Enos
Mallard Fillmore
David Fitzsimmons
Glenn Foden
Jake Fuller
Bob Gorrel
Walt Handelsman
Joe Heller
David Hitch
Jerry Holbert
David Horsey
Lee Judge
Steve Kelley
Mike Keefe
Jeff Koterba
Dick Locher
Chan Lowe
Jimmy Margulies
Gary McCoy
Rick McKee
Jack Ohman
Jeff Parker
Milt Priggee
Michael Ramirez
Rob Rogers
Steve Sack
Bill Schorr
Drew Sheneman
Kevin Siers
David Ray Skinner
Jeff Stahler
Scott Stantis
Danna Summers
Gary Varvel
Kirk Walters
Christopher Weyant
Larry Wright
Dan Wasserman
Adam Zyglis

Tech Q&A
Mr. Know-It-All
Ask Doctor K
Richard Lederer
Frugal Living
On Nutrition
Bookmark These
Bruce Williams
|