It's true I have a deeply ingrained skepticism about governmental plans -- a nice healthy American habit. The recent announcement by the Obama administration calling for sweeping changes to the auto industry has some proclaiming how this is some perversion of economics.
No it isn't.
For instance, governmental actions - from free land to free cash and tax breaks for industries - are common tools to encourage private businesses to locate in Tennessee (or most other states). That massive industrial project in Chattanooga would not exist without taxpayers ponying up cash for "development". Can you say "Volkswagen" Sen. Corker?
And a brief review of government taking charge of businesses "too big to fail" turns up several success stories:
"[T]here is a bright shining example from not so long ago of government bureaucrats engineering the revival of an industry easily as troubled as today’s automakers and, if anything, more central to the economy. And it all turned out better than anyone dared hope, with a dazzling return to profitability. It is the story of the railroad industry, and while the parallels with today’s auto industry are not exact, they are close enough to provide many useful lessons. Its example suggests that, as the automakers return to Washington for a second round of assistance, the greatest danger may well be not that government will intervene too much, but that it won’t intervene enough."
Phillip Longman's full article is here.
Sen. Corker, like his party leadership has demanded, is so focused on demonizing the Obama White House he's willing to ignore the need for economic repairs. He's chopping away at his own nose to spite his face. As The Nashville Scene notes, "But whenever the auto industry is raised, he suddenly begins talking from orifices not commonly associated with speech"
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