Can a transparent and choice driven market place prevent Washington from adding to the “czar syndrome”??
the AP reports: “A government “car czar” would oversee any bailout of U.S. automakers under proposed terms being negotiated by the White House and Congress for extending up to $17 billion in emergency loans that mainly aim to spare General Motors Corp and Chrysler LLC from bankruptcy.”
Adam Smith noted centuries ago that the job of government was protecting the process of markets, not markets; not the expansion of its own power, but the use of its power to protect the process of discovery, transport, utilisation.
the “bail out” in the auto indistry needs to be driven from the bottom up. There isno question that the indistry needs help. What is being forgotten is that “industry” is not a corporate flag, but the process of people connecting.
Currently, the “end receptors” are blocked by 2 real facts: at least 18 million households need as part of the social contracct to replace cars, and those same households cannot afford to do so.
In addition, the neighborhoods and towns where those peole live are suffereing from the systm being clogged with underwater mortgages, job loss, and declining tax base.
While there is definitely a need for rigid oversite in dispensing any federal funds into the vehicle industry, it is a fact that most of the oversite needed is already in place if the right solution is invoked.
Mecnaisms exist for tracking and destroying titles for crushed cars. Mechanisms exist for moving the paper of delivered credits from the receiver of the dead car to a car lot, to a bank, to the corporate accounts back to the treasury. Mechanism exists for collecting an ongoing 10 cent federal fuel tax. All of this can be done
with the least possible additional “Beltway bureaucracy.”
And given when this idea was first laid out here, some of its innate power could have been in time for Christmas.
Posted under business
This post was written by admin on December 7, 2008
