Article published November 14, 2008
Auto industry can't compete with unions
Presidential candidate Barack Obama denounced corporate bailouts with great indignation as helping out the "Fat Cats." He said corporations needed to be responsible for what they do. Now, the "Chosen One" is urging President Bush to move quickly to bail out the struggling American auto industry. Why the change of heart? It is spelled UAW. It is all about Mr. Obama's financial and constituent base; it has nothing to do with what is good for America.
Why shouldn't they be allowed to fail? They can never be competitive in the world market as long as they are saddled with wages and benefits that are nearly double those of their international competitors. They are burdened with supporting union retirement funds and medical plans that are over-inflated and noncompetitive. Failure would break the yoke of union domination. That would be the best thing that could happen to the American auto industry.
We do not "need" an "American" auto industry. It is a world market. Isolationism is gone forever. The Japanese, Germans, English - even the Koreans - are building cars equal to or better than ours. If the auto industry is given the chance to start over, it will if it can do it competitively. It will never be competitive while shackled by the UAW. I am certainly not a proponent of a "new world order," but studies show that countries that have significant trade relations generally do not get into wars with each other. The bigger the world market and the more trade interdependence that exists, the better it is for world relations. The concept of "Buy American" makes about as much sense as not buying Michigan products because you are an Ohio State fan.
Where is Mr. Obama taking us?