Detroit Fail

Back when everyone was discussing whether or not we should bail out the automakers, some folks were suggesting that saving the Big Three could help Detroit transition into a hub for the production of green technologies. I tended to point out that the Big Three had often fought against policies that would encourage green innovation, so saving the automakers would maintain a major institutional barrier to a Midwestern economic renaissance.

Similarly, folks like Matt Yglesias pointed out that if we were going to hand over a bunch of money to failing automakers, we should at least require that they not continue to fight against green policies. This was pretty sensible. Not only would such a provision have been a decent pro quo for the taxpayers’ quid, it would also help us avoid an embarrassing situation in which Detroit uses taxpayer money to fight green policies that would benefit taxpayers.

Um.

Comments

  1. Doug says:

    501 (c) (3)s are limited in their lobbying for just this reason- to prevent tax-subsidized entities from using their public funds to ask for more public funds. Bailed out companies should have the same restrictions. Now that I think about it, that’s probably what they are suing for.

  2. monkeyrotica says:

    Well, of course we’re paying bailout money to the Big Three so they can sue taxpayers. WTF did you think that money was going towards? Building green cars powered only by rainbows and unicorn farts? Wake up and smell the pee, jack. After compounded interest and self delusion, the greatest power in the universe is that of lawyers suing eachother.

    Our best bet is to nationalize the domestic automobile industry, like they did under Stalin. You get a handful of Trabant-quality cardboard cars the size of gocarts that only the highest members of the party can afford (after being on decades-long waiting lists). Everyone else rides a bike or mass transit. Best thing that could happen to the environment. We pretend to pay them, they pretend to work.

  3. awp says:

    Then, you will have to pass another set of laws defining what is and isnt appropriate lobbying. Then after they figure out the loopholes we would get yet another set of laws re-restricting lobbying, ad infinitum.

    A lot of reports about Fannie Mae and Freddie Mac said that they were the biggest lobbyists. How stupid that we gave them a implicit(now explicit) subsidy from the government, so that they could then turn around to lobby for more govt protection. That is what is going to happen with all of these bailouts and such. Once we have given them money they will have more influence because our politicians will not want to be shown as the the fools that they are, for giving our money to failing companies.

    The greatest false premise of the bailout/stimulus is that people will be smarter with other people’s money than they were with there own.

  4. wiley says:

    How different is building an SUV from building a bus?