More Lefty "Logic" in Detroit
Barack Hussein Obama Monday bashed American automakers for failing to make fuel-efficient cars: "Here in Detroit, three giants of American industry are hemorrhaging jobs and profits as foreign competitors answer the rising global demand for fuel-efficient cars."
So his solution, naturally involving government intervention, is to "[encourage] domestic automakers to make fuel-efficient hybrid vehicles by giving them health-care assistance for retirees."
One would think that, with "the rising global demand for fuel-efficient cars," profits would be enough to encourage auto-makers to produce fuel-efficient cars. Automakers make cars based on which models they think will make them the most profit. They certainly have a better handle on this information than politicians do, even magical politicians. Retiree health care is overhead, Mr. Obama. It does not change with different models.
Still, health care is an issue for our automakers. Japanese automakers do not pay for their employees' and retirees' health care, the government does. So to make our automakers competitive, Mr. Obama recommends giving ours assistance with their health care costs. (What does that have to do with fuel-efficient cars? Nothing.)
Now of course the Japanese government doesn't really pay for the workers' health care -- the taxpayers do. The taxpayers pay for everyone's health care in Japan. So the money goes in a big circle, and the workers, by paying taxes, pay for their own health care. The net effect is to lower their real income. Now we get to the real heart of the problem, which is that our autoworkers demanded too much in their union-negotiated deals. They had a good run of it, getting paid far more than other unskilled workers. The party is over, and they are now putting their employers out of business.
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