SEARCH BLOG: ECONOMY and AUTOMOBILES
There are times when philosophy defies reason. If you accept a certain premise, then you can be logical in your conclusions... but not necessarily reasonable.
Some bloggers and politicians and economists... philosophers all... see nothing wrong with allowing the American automobile [and truck and tank and military transport] manufacturers go into bankruptcy and take the automotive supply base with them. It will allow a "fresh start" if there is anything remaining. It's the hypothetical "free market" in action!
The argument is given that since the airlines survived bankruptcy, why not the automobile manufacturers? First of all, have you ever heard of apples and oranges... or producers and consumers?
The airlines are consumers, not producers. Northwest and American and United don't make anything. Boeing and Lockheed manufacture aircraft... and missiles... and space craft. Any comparison with aircraft and automobile manufacturing should be between GM, Ford and Chrysler... and Boeing and Lockheed... not Northwest and American.I just finished commenting at one site that saw no real reason why bankruptcy wasn't a good option for the American automobile manufacturers. You can read a more detailed argument here, but my comments on that site are below:
There are always alternatives...
- American steel is as vibrant as ever... well maybe not
- American television manufacturers are as vibrant as ever... well maybe not
- American textiles are as vibrant as ever... well maybe not
- American balance of payments are as strong as ever... well maybe not
- American middle class is growing and prospering... well maybe not
- American per-capita wealth is growing faster than any place else in the world... well maybe not
- America is producing the highest percentage of the world's Ph.Ds than ever... well maybe not
There is a difference between self-sufficiency and self-delusion. America no longer sees value in producing what it needs. Rather it seeks to find the next get-rich-quick scheme... dot-coms... flipping houses... oil stocks.
You are correct. We don't have to produce trucks and cars. We can allow the system to collapse and the Japanese and Koreans and Europeans will continue to state-sponsor their own industries. Likewise, we don't have to manufacture our own aircraft because the French and British and Russians and Chinese will be happy to do so.
Likewise we don't have to produce our own energy or food. The Saudis and Venezuelans will handle the oil while we can get our food from South American and Latin America.
Why, we don't have to do anything except blog and take vacations and consume and have university professors talk about CO2 and politicians talk about sharing the wealth.
And then we live happily ever after... well maybe not.