As we hear calls for more "bailouts" to save these uncompetitive companies, we simultaneously hear Democrats clamoring for greater "oversight" of the issuing of the bailout money. It has even been suggested that we need a Car Czar.
Now I'm with all of you, there should be accountability for how the money is spent and who receives it. But I fear that the Republicans are oblivious to the bait & switch tactics at play. The Democrats are appealing to the reasonable conscience when requesting greater oversight. However, this power can be manipulated and abused.
Take the idea of a Car Czar:
- Where does his or her authority end?
- Is it solely in the administration of the money or does it extend to efficiency standards, labor contracts, product placement, green technology, etc.?
- Even if limited to the money, what are the contractual terms governing issuance?
- Can the Car Czar withhold bailout money from a car company that isn't meeting fuel efficiency targets or meeting union benefit demands?
- Can the Car Czar set precedent across the entire U.S. auto-manufacturing industry or is he or she limited to the Big 3 under the Bailout agreement?
- Can the Car Czar impose on other auto-manufacturers the uncompetitive labor requirements that the Big 3 have subjected themselves to?
- Does the Car Czar have authority over import tariffs on foreign owned auto-manufacturers?
Signing off...JCB Sphere: Related Content