Sunday, November 16, 2008
U.S. Auto Makers Are Dinosaurs
I agree with Senator Richard Shelby of Alabama when he says the U.S. auto makers are dinosaurs and should face market realities. In fact, had the federal government said this to them decades ago, we would in fact have a health auto-making sector by now. Instead, we fed and fed and fed the dinosaur until it's legs buckled under its weight. But as in nature, sometimes a species has to die because it is no longer adapted to the environment, and keeping it around only prevents new species and evolutionary innovation from arising. Such is the case with the U.S. auto makers. They haven't had to deal with reality for a long, long time. If our government would stop creating mirages for them, they would have been able to survive. What has happened with the auto industry should be a warning against governments propping up poorly-run companies. We need to stop rewarding failure.