American Consumers Need Look into the Mirror
"The Idiot American worker only has himself to blame. Cutting his own throat, and then crying about it."
And don't forget about the American love affair with cheap gas and more horsepower.
I'm hardly sympathetic to the management decisions made by GM and the other domestic car manufacturers which have led to many of their problems. I am perplexed, however, at the insistence by many that these companies have somehow "made cars that nobody wants."
Hummers and SUV's have been extremely popular for so long as gasoline was less than $2/gallon. The recent and sudden price spike to over $4/gallon caused the American consumer to suddenly become concerned about energy conservation and renewable energy. "Why is Detroit still making these dinosaur's," is the question that is now asked "when we want plug-in electric and hybrid vehicles instead?"
The answer is that the auto industry - whether domestic or foreign - is inherently incapable of turning on a dime in developing/changing its product line to respond effectively to the whims of the consumer such as we witness here in America. Whereas Detroit has now been given their marching orders to develop and offer for sale only efficiently "green" cars for the market, I can assure you that the recent collapse in gasoline prices will soon have the American consumer once again scrambling to get the latest gas-guzzler offered and to spit on the Prius and the Volt as being insufficient for their needs.
If we are truly interested in stabilizing the market for our automobile manufacturers (and also "greening" our transport choices in responsible fashion) it is necessary to first stabilize the gasoline market. Fixing gas prices at $4/gallon or above is probably the singularly most important policy change we could make in support of our automobile industry, our environment, and our desire for energy independence.
Perhaps even more importantly, stabilizing the price of gasoline will do much to support the development and marketing of alternative fuels that will at last move us away from our present reliance on fossil fuels. Allowing the fuel market to instead swing as wildly as it has these last number of years is to cause the domestic auto industry, our renewable energy industry, and our economy itself to go completely dead in the water with the weight of the oil companies and the foreign oil producers tied around our neck.





How about investing in Public Transportation instead
November 23, 2008 12:59 PM | Reply | Permalink
I was just thinking that! Indeed, I was thinking railroads. I was thinking the car companies could be diverted somewhat into that. Or buses. And we need better repair of rail lines. Maybe more of them. Take some burden off the trucking industry and thus the highways.
Public transportation for people and goods!
November 23, 2008 1:18 PM | Reply | Permalink
His solution would enable (and finance) investment in public transportation. It's how Europe and Japan have financed their very excellent systems for decades. Higher gas prices also encourages people to use that transportation as well.
November 23, 2008 1:34 PM | Reply | Permalink
Absolutely!
I think public transportation is an excellent public works project to be undertaken for purpose of stimulating the economy. The 50's had the interstate highway project which, for better or worse, provided incredible benefit to the entire economy, not just Wall Street. An investment of equal magnitude in public transportation would do likewise at this time while improving our carbon footprint and enhancing our independence from foreign oil and multi-national oil companies.
Our transportation plan, however, cannot be zero-sum. There will always be need for private transportation given the expanse of the U.S. overall as compared to Europe and Japan and our urban centers wherein public transportation is wholly viable. Inasmuch as we still require automobiles for a large portion of our transportation needs, everything should be done to ensure that it is sustainable economically and ecologically. $4+ gasoline heads us in the right direction.
November 23, 2008 1:40 PM | Reply | Permalink
Greed and jealousy is what makes America work.
November 23, 2008 1:44 PM | Reply | Permalink
Seriously! Where's OUR high-speed rail???
November 23, 2008 2:19 PM | Reply | Permalink
Seriously! Where's OUR high-speed rail???
November 23, 2008 2:20 PM | Reply | Permalink
You nailed it.
November 23, 2008 5:09 PM | Reply | Permalink
I have to say I'm almost horrified to see gas prices fall like this...not only are we going to go back to guzzling it again, but these low prices keep the alternative energy sources from being feasible...
November 24, 2008 3:13 AM | Reply | Permalink
Well, we could always tax ourselves... (oh, no.... don't push the button!)
November 24, 2008 12:29 PM | Reply | Permalink