Democrats try to save auto business they screwed
NY Times:
Then there was their destruction of the credit markets by forcing lenders to give mortgages to people who could not afford them. When the credit market seized up it drove dealers out of business who could not finance their floor plan and made it difficult for buyers to finance purchases. But, you can count on Democrats to blame deregulation and not their own acts. Democrats never take responsibility.
There is also the excess regulation they have put on these companies that drives up the production costs at a time when sales are already eating into cash flow.
The auto companies have also made their share of mistakes including union contracts that are no longer economically viable or competitive. They have also failed to produce a car that will run on Democrat magic energy ideas. I suspect that any help they get will be tied to keeping the uncompetitive labor deals and more investment in magic energy fueled vehicles.
Holman Jenkins examines the car puzzle at Opinion Journal. Meanwhile, Thomas Friedman delivers the magical thinking of the left.
Democratic Congressional leaders said Tuesday that they were ready to push emergency legislation to aid the imperiled auto industry when lawmakers return to Washington next week for the first time after the election, setting the stage for one last showdown with President Bush.You might think they were feeling guilty for the mess they created for the auto business, but then these are Democrats and they never take responsibility for such things. The Democrats hatred of energy blocked domestic production and made us dependent on sources that don't like us as supplies shrunk because of their artificial restrictions on production offshore and in Alaska and other parts of the US. These higher prices had a devastating effect on the business.“Next week, during the lame-duck session of Congress, we are determined to pass legislation that will save the jobs of millions of workers whose livelihoods are on the line,” the majority leader, Harry Reid of Nevada, said in a statement.
His call for the session came shortly after the House speaker, Nancy Pelosi, said Congress and the administration “must take immediate action” to stave off a possible collapse of the American auto industry.
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Then there was their destruction of the credit markets by forcing lenders to give mortgages to people who could not afford them. When the credit market seized up it drove dealers out of business who could not finance their floor plan and made it difficult for buyers to finance purchases. But, you can count on Democrats to blame deregulation and not their own acts. Democrats never take responsibility.
There is also the excess regulation they have put on these companies that drives up the production costs at a time when sales are already eating into cash flow.
The auto companies have also made their share of mistakes including union contracts that are no longer economically viable or competitive. They have also failed to produce a car that will run on Democrat magic energy ideas. I suspect that any help they get will be tied to keeping the uncompetitive labor deals and more investment in magic energy fueled vehicles.
Holman Jenkins examines the car puzzle at Opinion Journal. Meanwhile, Thomas Friedman delivers the magical thinking of the left.
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