Ronald Reagan once said:
Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.
Is there no finer example of this concept than our government's hundred year relationship with the American auto industry?
Before you answer, consider the following Wall Street Journal editorial published Wednesday (h/t Tapscott's Behind the Wheel via Instapundit):
Like all regulatory schemes, Congress's hallowed Corporate Average Fuel Economy rules froze in place a conception of the auto industry as it appeared to the simple minds of Congress in the early 1970s, when three manufacturers dominated the U.S. market, making full lines of vehicles. Today, more than 25 companies sell vehicles here, and the corollary of such diversity, normally, is specialization.
The Big Three, left to their own devices, would surely specialize in those vehicles on which they make money -- i.e., those with hefty price tags and markups relative to their man-hour content. Even at the peak of gas prices, half the vehicles sold in the U.S. were light trucks. In November, amid a collapsed home construction industry and with $4 gasoline fresh in mind, what were the two top sellers? Pickups by Ford and Chevy -- and the Dodge Ram was No. 7. [...]
[UAW chief Ron] Gettelfinger's should be the loudest voice calling for an end to CAFE, an idiotic scheme that has done little to reduce gasoline demand or oil imports. Flexibility to build cars for a profit couldn't help but benefit all of Detroit's stakeholders, including a UAW struggling to preserve an island of high-wage manufacturing (à la Mercedes's German workers) inside what would at least have the possibility of becoming healthy Detroit-based global competitors.
Let's sum up: cars moved; government taxed them; they continued to move; government regulated them; they stopped moving; government subsidized them.
Are Reagan and the Journal right, and the better answer for our auto industry is to remove the regulations that have strangled its progress?
—Noel Sheppard is the Associate Editor of NewsBusters. Follow him at Facebook and Twitter.
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January 1, 2009 - 21:17 ET by Cool ArrowDUH!
The Great Communicator
January 1, 2009 - 21:47 ET by dboGovernment's view of the economy could be summed up in a few short
phrases: If it moves, tax it. If it keeps moving, regulate it. And if
it stops moving, subsidize it.
I'm sure if Reagan were alive today he would add " And if it dies, nationalize it".
Beat Me To It
January 2, 2009 - 12:30 ET by deerjerkydaveRight on dbo. You beat me to it.
I'm new here
January 1, 2009 - 21:58 ET by ConservativeCardinalI'm only 22, but I wish I could've voted for this man.
ConservativeCardinal
January 2, 2009 - 00:04 ET by Delsayou will be glad you found NewsBusters. Not just for the many diverse opinions you will read but for the lessons you will learn.
It is a real adventure for sure.
I feel sorry for the Cardinal because it is the state bird of so many left leaning states.
You are obviously a "Free Bird".
CC It felt GREAT both times..
January 2, 2009 - 10:36 ET by upcountrywaterTo vote for President Reagan the first time, and to give Carter the boot, priceless.
FREEDOM
(D)
Of course Reagan was
January 1, 2009 - 22:05 ET by bigtimerOf course Reagan was right....unfortunately this is going to be the future.
The schemes never quit.
"America isn't the problem...America is the solution." ~ Rush Limbaugh
Of course
January 1, 2009 - 23:31 ET by Delsathe bailout proves Reagan's point.
Hit the Nail on the ole head I'd say
Some people may go as far
January 2, 2009 - 01:15 ET by Mean Gene Dr. LoveSome people may go as far as saying that Reagan's quip was prophetic. However, anyone that understands basic free market economic principles and the unintended consequences of government intervention can see the very same thing. It's happening now with alternative energies, the auto industry, the agriculture industry, and the financial industry to name a few.
The voters need to wake up and remove the anti-capitalist lawmakers from office.
"An armed society is a polite society. Manners are good when one may have to back up his acts with his life." --Robert A. Heinlein, "Beyond This Horizon," 1942
Are you turning into Mr. Free Market Mr. Noel?
January 2, 2009 - 00:55 ET by JWFI drive a light truck. It will soon be time to replace it. My light truck carries lots of stuff (including the six dogs) and gets me to work when it snows.
I don't want a hybrid. I drive mostly highway miles to get to work which accounts for most of my driving. Hybrids save gas at the low end, city driving.
Suv's are fun but I have the off road package. My light truck sits higher. I don't have to wait for the snow plows, I can drive though much higher snow than the normal vehicle. SUV's may come with the 4WD but a lot of them don't come with the off road package.
Yes, cafe is horrible. Americans bought more fuel efficient cars and DROVE MORE consuming the same amount of fuel.
Sincerely,
a Veteran of a 1000 psychic wars.
JWF
January 2, 2009 - 01:03 ET by Noel SheppardJWF,
Why do you ask? Does that surprise you? ns
Sorry, that was sarcasm, Mr. Noel.
January 2, 2009 - 01:16 ET by JWFRead - Suppressing a giggle, JWF looked at Mr. Noel with soulful deadpan eyes a said sarcastically, "Are you turning into Mr. Free Market Mr. Noel?" Then he gave a slight wink and layed his hands upon his nose and up the chimney he went.
Sincerely,
a Veteran of a 1000 psychic wars.
Are Reagan and the Journal right
January 2, 2009 - 14:52 ET by R D HelmAre Reagan and the Journal right, and the better answer for our auto
industry is to remove the regulations that have strangled its progress?
Yes, and the sooner the better.
Problem is, we are facing a steep uphill battle, due mainly to ignorance on the part of those who make the laws.
Ten reasons why CAFE standards are a big part of the problem.
Why George W. Bush has been no help whatsoever.
Why Obama is only going to make it worse.
-Dave
“Them that’s going get on the wagon. Them that ain’t get out of the way.”