Skeptical Eye: The Statist Auto Industry

Saturday, November 14, 2009

The Statist Auto Industry

At a special Reuters summit in Detroit, numerous auto industry executives are cited as suggesting that the government raise taxes on gasoline substantially to spur the adoption of fuel efficient vehicles. States Tim Leuliette, chief executive of privately held parts supplier Dura Automotive, “In the United States, we’re afraid to touch the fuel price. We’ve got to continue to raise taxes in the United States so that, by the end of the next decade, gas is about $8 a gallon in today’s terms.”-Auto Execs Urge Government to Tax Fuel up to $8/Gallon to Increase Fuel Efficiency

The Auto industry has always had strong ties to the government, but after bailouts to save the losers GM and Chrysler (Chrysler should have been given a merciful death back in the 1980s) and the evil Cash for Clunkers scam, we can see clearly what has always been obvious, that big business cares nothing for free markets, and is not, as Ayn Rand claimed, "America’s persecuted minority".

I think it's safe to say the modern American capitalism is a complete fraud and that liberty lovers should stop calling themselves "capitalists". It only confuses the issue when we do so, because in the popular mind, the cozy corporate/state alliance is capitalism.

3 comments:

GinxNov 14, 2009 07:45 AM
It's corruption, not capitalism...

When elected officials are beholden to anyone but the voters, there's bound to be trouble.

Market capitalism is a robust system that functions as the backbone of every successful economy in the world, even ones Americans often deride as "socialist." I wouldn't throw out the baby with the bathwater on this one.

There always needs to be a clear line between public and private entities. When the government infringes on private industry (which the US government is so apt to do), there are inevitable problems. But it goes both ways, and private industry getting involved in public policy will always fundementally fail.
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CorkNov 14, 2009 10:46 AM
Ginx,

What SE and I are criticizing is not free-market capitalism, but the authoritarian state monopoly capitalism that currently prevails in the United States.

However, I'm happy to see that you seem to be coming at least a little closer to the libertarian pov.
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GinxNov 14, 2009 04:51 PM
I think of the government as a referee and companies as different teams. Their presence is necessary, but they shouldn't be determing the outcome, only calling fouls - and they often function best when you hardly notice them at all.

I think the problem is teams are paying off the refs. Anarchism seems to me to be saying "Fuck the refs! We don't need them and their corruption!" The teams are just as much to blame, but that doesn't make Statists who say "We don't need teams, then everyone can win and no one loses!" are any less retarded.
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