Thursday, December 11, 2008

a foreseeable unintended consequence?

You know, ever since I became informed of how the government's dealings in 1999 effected the housing crash of this summer, I have been a big believer in the government keeping their hands off the economy.

Of course, the government has done the exact opposite.

SO now I'm in the business of predicting the fallout of the government's moves to bail out every Tom, Dick and Harry with a sad story--even if that story is about the failures of the beggar's own management.

And here's my prediction if the bailout for the big 3 moves forward: foreign-owned car companies will eventually close their plants in the U.S.

Why would they keep them open? They has worked under the same MARKET as have the big 3, and somehow they have found success. In a truly capitalistic economy, Toyota and the others would be rewarded with a diminishing competitive pool. And I'm sure that somewhere in the front offices of these companies, their strategy was always to drive some of Detroit out of the playing field.

And now the U.S. government won't let that happen.

So why play on our field when it's so slanted against their interests?

It's amazing how that conversation has yet to see the light of day in all these bailout talks. . .


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