Sunday, November 16, 2008

Auto industry bailout not the answer

The lead story in today's Columbus Dispatch asks a provocative question: "Automakers now roadkill?" Writer Dan Gearino carefully researches the history of job losses in Ohio's auto industry and the pain that would be caused if the Big Three were to be allowed to collapse.

Mr. Gearino quotes James Rubenstein, a geography professor at Miami University and "an expert on the Ohio auto industry": "The severity is such that the nation as a whole needs to face up to a regional issue." According to Prof. Rubenstein, the bailout should be thought of as disaster relief for the Great Lakes states, "just like the country banded together to help the Gulf Coast after natural disasters" [Mr. Gearino's words].

The rest of the nation does not give a rat's patoot about the Great Lakes States. I know this is not the way to gain popularity in this State, but the Big Three should be allowed to collapse. Yes, I know it will be extremely painful; and at least 40,000 more workers will be out of a job -- but to send taxpayer money to the automakers, even as a loan, will only prolong the agony. Yes, I know that the American public thinks that American automakers make poorer quality cars than they really do -- my wife and I each have a Ford Focus, both over four years old, and we are completely satisfied with them.

The problem is not all the United Auto Workers, and it is not all corporate arrogance in Detroit. The problem is, that the Big Three are structurally incapable of responding quickly to innovation. Instead of bailing out the behemoths, we need to incubate new, smaller automakers that will develop electric and hybrid cars; and invent new forms of transportation that remove our dependence on Oil. We need free enterprise, not government-subsidized enterprise -- that can compete and innovate. This is the playing field on which Ohio is strongest, and the one on which Ohio will win, given the opportunity.

Again, I know I am suggesting an extremely painful transition, but sometimes you have to perform an amputation to save the patient's life. This is one of those times.

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