The Constitution guarantees the private ownership of property within the Fifth Amendment. Certainly government is allowed to own property for its own use, such as buildings, military bases, hospitals and means of individual transport, necessary to do the business of government and provide for the greater protection. It is pretty clear that the Framers never meant for government to own businesses. There was darned good reason. The private ownership of property, goods and services....of the means of production is an essential component of freedom. We are seeing an excellent example of the reason behind that this week in America.
Because it was "too big to fail", so called, General Motors was given billions of dollars in bailout money to save it from its own terrible business practice. At the same time, Toyota had taken over the mantle of #1 US car manufacturer. Not hard to understand. They had lower production costs, primarily because they had lower labor costs. In spite of paying an average of $36 per hour to its assemblers (Yep, folks, that's $75 large a year before overtime), Toyota's expenses were less. Offered a tad more money to be spent on quality and innovation, huh?
So, what occurs directly after the bailout money is paid? A public crisis occurs with "stuck throttles" on the flagship Toyota Corrola. Our public officials cry out, "Is Toyota killing people with their inferiors cars?" Evening news highlights it. Politicians demand investigation. Evening news highlights that too. The investigations begin. Meanwhile, Toyota says publicly that they are pretty sure it is caused by floor mats sliding forward and covering the accelerator. That could be defined as a design defect. It could also be attributed to dumbassed drivers who don't take care to inspect their vehicle before they drive it. Should cars also have "Coke can rolling from under the seat and getting under the brake" detectors? Hmmmm....I may have an idea there.
Then, in the midst of the Toyota throttle crisis, our government begins "Cash for Clunkers". This program gives enhanced trade ins for older gas guzzling vehicles, that have become decrepit enough not to be traded in. Who do you think made these cars? Toyota? Oh ya...they were one of the first companies to feature energy efficient cars. Weren't THEY the company who highlighted the Prius? Oh ya. And aren't they the company whose cars last forever? Doesn't GM make Blazers and Suburbans and Escalades and Impala's and Hummers? Are they the car company whose cars tended to rust out? Oh ya...
And when the "Clunkers" were traded for down payment cash, were people buying those unsafe, accererator sticking, murderous Toyotas? "I'm not buying those until they square THAT away!!!"
Well, this week, earning reports come out on major Dow components including GM. Guess what? They will report that they are the #1 car manufacturer again. Surprising? Not at all. The power of the government that owns them was brought to bear against its competitor. The competitor who built less "clunkers" that burned less fuel, and gave us the first "hybrid".
Oh, and that pesky stuck throttle? The investigation showed it was floor mats and operator error. THAT was reported once, quietly, on one evening news show per network.
The Framers of our beloved Constitution understood clearly that the power of government, with its powers of investigation and regulation, give it an unfair advantage in competition on the free market.
And with the loss of fairness on that free market, we each lose a chunk of our liberty.
Because it was "too big to fail", so called, General Motors was given billions of dollars in bailout money to save it from its own terrible business practice. At the same time, Toyota had taken over the mantle of #1 US car manufacturer. Not hard to understand. They had lower production costs, primarily because they had lower labor costs. In spite of paying an average of $36 per hour to its assemblers (Yep, folks, that's $75 large a year before overtime), Toyota's expenses were less. Offered a tad more money to be spent on quality and innovation, huh?
So, what occurs directly after the bailout money is paid? A public crisis occurs with "stuck throttles" on the flagship Toyota Corrola. Our public officials cry out, "Is Toyota killing people with their inferiors cars?" Evening news highlights it. Politicians demand investigation. Evening news highlights that too. The investigations begin. Meanwhile, Toyota says publicly that they are pretty sure it is caused by floor mats sliding forward and covering the accelerator. That could be defined as a design defect. It could also be attributed to dumbassed drivers who don't take care to inspect their vehicle before they drive it. Should cars also have "Coke can rolling from under the seat and getting under the brake" detectors? Hmmmm....I may have an idea there.
Then, in the midst of the Toyota throttle crisis, our government begins "Cash for Clunkers". This program gives enhanced trade ins for older gas guzzling vehicles, that have become decrepit enough not to be traded in. Who do you think made these cars? Toyota? Oh ya...they were one of the first companies to feature energy efficient cars. Weren't THEY the company who highlighted the Prius? Oh ya. And aren't they the company whose cars last forever? Doesn't GM make Blazers and Suburbans and Escalades and Impala's and Hummers? Are they the car company whose cars tended to rust out? Oh ya...
And when the "Clunkers" were traded for down payment cash, were people buying those unsafe, accererator sticking, murderous Toyotas? "I'm not buying those until they square THAT away!!!"
Well, this week, earning reports come out on major Dow components including GM. Guess what? They will report that they are the #1 car manufacturer again. Surprising? Not at all. The power of the government that owns them was brought to bear against its competitor. The competitor who built less "clunkers" that burned less fuel, and gave us the first "hybrid".
Oh, and that pesky stuck throttle? The investigation showed it was floor mats and operator error. THAT was reported once, quietly, on one evening news show per network.
The Framers of our beloved Constitution understood clearly that the power of government, with its powers of investigation and regulation, give it an unfair advantage in competition on the free market.
And with the loss of fairness on that free market, we each lose a chunk of our liberty.
You chose a great example to illustrate your point Chip. I thought the government handling of Toyota was shameful. That they were doing it to smear the competition was blatantly transparent from my perspective.
ReplyDeleteAnd, not only do we lose a little more liberty with each new adventure by an out of control government, but with each new example corporations become more and more fearful of it as well.
The founders never intended for government to be the subject of fear. Heck, to the extent it is possible, the founders never intended for government to intrude into the lives of citizens at all.