Nationalize the American Auto Industry!

 

The failed management of General Motors, Ford, and Chrysler is obvious. Who would have said that the pioneering auto company Ford would be in this situation? What can we expect from companies with  management teams that care more about their own well-being rather than that of their company/employees. Now they and the world see the consequences of their own missteps. Once prosperous companies are now panhandling the government. For what? So that they can cut more jobs and go on with their careless attitude. GM has stated that in any case it will cut approximately 40,000 jobs of the 260,000 that it provides. They also make no promises to reform their industry to make it more competitive against foreign Asian and European industries.

Since the 1950s government has had to force these companies to adopt safety requirements for their auto-mobiles such as the seatbelt,lights,airbags. The list goes on and on. Now, when the people ask them to adopt a policy of more fuel efficient,competitive cars; they refuse. When companies fail to use their capitalistic freedom for the good of it’s employees and the market it serves, than that is when government must act drastically. So what is the solution? 

 

Government  must acquire the companies and combine them all into an industry called the “American Automobile Company” which would be run by the government. Doing so would secure jobs for millions of Americans and people around the world. Sub-industries such as the glass, plastic, metal, and rubber industries will expand. The government must then select an efficient management team that will produce more hybrids,bio-fuel,natural gas, and fuel efficient cars to compete against Korean,Japanese, and European companies. Since the  A.A.C would be a government regulated institution it would not be obliged to pay taxes allowing it to have higher profits to secure health benefits and a $80,000/yr pay to it’s employees.

The U.S. government should also provide states with federal funds designated at building infrastructure and a new public transportation systems to connect towns with big cities, and states to other states.  Doing so would decrease oil demand, traffic problems, and provide millions of families with alternatives. Not to mention the jobs that would be created to build the system is dramatic. An automatic employment boost in the A.A.C would also result because the company would build the buses,subways,trains,etc for the new transportation system.