tag:blogger.com,1999:blog-1724124815715040118.post3328866036551626624..comments2009-01-04T08:30:38.333-08:00Matthew Stavroshttp://www.blogger.com/profile/00742226999004112408noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1724124815715040118.post-30864854688338168492009-01-04T08:30:00.000-08:002009-01-04T08:30:00.000-08:00I basically agree with your assessment. The main reason to save the American auto industry is to avoid paying unemployment or welfare to the millions of workers employed, directly or indirectly, by the industry. Such payments seem likely to exceed the cost of saving the industry, at least as discussed so far. This problem has both short- and long-term aspects. The loans address the short-term aspects. The op-ed addresses possible long-term aspects, but I agree that (except possibly for solar panels) they are not likely to be practical or useful in any reasonable time-frame.Ed Kimballhttp://www.blogger.com/profile/16279134988667424860noreply@blogger.comtag:blogger.com,1999:blog-1724124815715040118.post-81290818363680208042009-01-04T05:00:00.000-08:002009-01-04T05:00:00.000-08:00I believe the industry must be saved, if only to prevent America becoming dependent on foreign goods in yet another industry. America failed to save its electronics industry and textile industry, so cars are basically one of the few things that are still actually made in the States. Having some form of home manufacture is necessary because without it, we see the debt driven consumer and business spending which led us to this in the first place. Any recover must be focused on the things we make, rather than the bubbles we finance. <BR/><BR/>The fact that things have hit the fan presents an opportunity to reform what is wrong with the industry. The American car industry has been hit so hard and failed so spectacularly because, compared to cheaper, arguably more reliable and attractive foreign cars (in particular Toyota, who managed to have a decent year despite the turmoil) American cars just cannot compete in the free market (stats do show American cars do reasonably well overseas and struggle in the homeland, but even this small success cannot continue forever). Cheap gimmicks such as those the article suggests will do nothing to solve this problem, though it is clear simply throwing money at the industry isn't enough. The industry needs a new direction to avoid this occurring again. The new direction is of course focusing on developing cheaper, more efficient cars. The US government should demand such a course of action before any bail out occurs.Anonymousnoreply@blogger.com