The Economic Patriot Act

Steve Horwitz totally nails it:

This [the stimulus bill] isn't just your run-of-the-mill pork.  What we are seeing happen right now is that Congress sees this crisis as an opportunity to enact a whole variety of programs that they've wanted to pass for years, especially (but not only) the Democrats who no longer fear a veto, and now finally have the chance.  Just as the Patriot Act was a bunch of laws waiting for a political “crisis,” so is much of the stimulus package a bunch of programs waiting for an economic “crisis.”  The current crisis is just a convenient excuse.

Disaster dirigisme.

  • Toyota and the other Japanese opened their American car plants after the Reagan Administration imposed import quotas on them in 1982.

  • jack

    Cars, interesting stuff, personally, I wonder if we might aleviate the pressure on the situation if we lean towards decreasing the manufacturing of such gasoline powered viechles, and increasing the manufacturing of viechles that run on alternative fuel, hydrogen cells, ethanol, etc. I could be wrong.

  • Fascinating discussion – but since the automotive industry is so crucial, I think we have to keep doing it, especially if you consider how many different industries are interwoven – steel, parts, electronics, etc…

  • With the economic crisis, it most look like the production of cars is certain to slow down, General Motors are in a lot of trouble at the moment, and thousands of automotive related jobs are disappearing, its the last thing that needs to happen at this current time.

  • It’s not at all a good idea to stop making cars, I would say if you have to do something just cut short the production a bit!

  • Japanese car companies like Toyota are profitable in spite of having manufacturing centers in high cost locations in the United States. It is simply because they can offset the costs by producing vehicles that match the demand of the time, and by improving their assembly processes. American auto industries have to learn that. Simply by outsourcing operations to other countries will not solve the problem of generating demand. They have to improve the quality too.

  • I don’t think America will stop. They will lessen the production but not stop. So many people will lose their jobs if they stop making cars.

  • The unions have created a wage bubble for Big Three workers, and its killed the Big Three.

  • I totally agree with the author. Good job must be paid good, and there are just people that do their job the best way, the way better than most others and there are people that are ready to pay good for nice and faster job, and although the global crisis goes worse such job will always be on demand, it’s just that the quantity of such workers will significantly lower.

  • probably not a good idea. US should not stop because if they do it will give more problems. US will then import cars from other countries making their economy go down even more.

  • americandreamer

    the only car america makes are fat slugish gas guzzeling giloths. we should put all us car makes to death unless they stop making cars. I have had it with the build more buy more idea most /”americans have. Use what you have and stop buying new shit.