So both Ford and GM are laying people off. Good. If you make a product no one wants and manage your business in an inefficient manner you don't deserve to stay in business.
Somewhat overlooked is that at the same time American firms are cutting their workforces that foreign automakers are expanding hiring in the U.S. The result is that net employment in the industry is holding steady at around 1.1 million. So jobs are being transferred from firms that make sub-par products to firms that make better ones (on average). Good, right?
Not if you're a politician, apparently. Congress and the administration both know that a replay of the Chrysler bailout is not politically feasible, so they're out snooping around for another angle. And I think I know what it is. Consider the following recent developments:
* Bush says that America is "addicted to oil" and said that ethanol should be part of the solution to break this habit.
* Bill Ford says his firm is committed to big expansions in production of both flexible fuel (which use ethanol) and hybrid vehicles.
* Sen. Evan Bayh and others have introduced legislation that would give tax credits, low interest loans and grants to auto manufacturers to produce these "green" vehicles.
But just don't call it a bailout.
Somewhat overlooked is that at the same time American firms are cutting their workforces that foreign automakers are expanding hiring in the U.S. The result is that net employment in the industry is holding steady at around 1.1 million. So jobs are being transferred from firms that make sub-par products to firms that make better ones (on average). Good, right?
Not if you're a politician, apparently. Congress and the administration both know that a replay of the Chrysler bailout is not politically feasible, so they're out snooping around for another angle. And I think I know what it is. Consider the following recent developments:
* Bush says that America is "addicted to oil" and said that ethanol should be part of the solution to break this habit.
* Bill Ford says his firm is committed to big expansions in production of both flexible fuel (which use ethanol) and hybrid vehicles.
* Sen. Evan Bayh and others have introduced legislation that would give tax credits, low interest loans and grants to auto manufacturers to produce these "green" vehicles.
But just don't call it a bailout.
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