Auto Bailout? *Sigh*

I must say, I am surprised that one of Obama's first proposals is a bailout of the American auto industry. Not only did it seem to come out of nowhere, it also feels ill-advised. I guess I can see that the Democrats want to show that they can provide bailouts for blue collar workers - not just the white collar jobs in the financial sector. At the same time, it really seems like we have been bailing out the American auto industry for far too long. They have a history of building cars that don't last, they seem incapable of staying ahead of trends, and worse of all resist calls to improve fuel efficiency and move towards alternate fuel technologies and only do so after other firms (mostly Honda and Toyota) have beat them to the punch.

Instead, I really think we need to let these companies fail. In their place we could see American car manufacturers that put innovation - and greener technology - first. Now, if the Democrats want to allow for a soft landing of the car companies, and provide support for those who will be laid off, I can get behind that. In fact, maybe they could provide tax breaks for new American auto start-ups that will buy the old manufacturing plants and hire the former workers (this idea is definitely off the cuff - so it might prove unrealistic for new companies to start because of high fixed costs).

I really think this is where Democrats get a bad name. We want to help those of moderate or lower incomes, but we tend to choose policies that are more populist and less economic - policies that might help in the short run, but really hurt in the long run. This makes little sense from an efficiency standpoint and furthermore, it isn't the only option - or necessarily the best option - from a fairness standpoint. I know I won't agree with the Obama administration on everything, but I thought I would make it farther than this.

Note: Although I definitely have my favorite columnists, sometimes I feel like a hack by only printing their opinions instead of mine. It's hard though when they make the point so much better. Anyway, here is David Brooks' take on the auto bailout:

But the larger principle is over the nature of America’s political system. Is this country going to slide into progressive corporatism, a merger of corporate and federal power that will inevitably stifle competition, empower corporate and federal bureaucrats and protect entrenched interests? Or is the U.S. going to stick with its historic model: Helping workers weather the storms of a dynamic economy, but preserving the dynamism that is the core of the country’s success.