Should Uncle Sam save General Motors, Ford and Chrysler from bankruptcy? In normal times, most mainstream economists (and many mainstream legislators) would probably say no. But with financial markets in turmoil and the economy on the cusp of a nasty recession, these are hardly normal times. In any event, Congress and President-elect Barack Obama are committed to spending billions to keep the Big Three afloat.RTWT.
What's not been decided, however, is how that money should be spent. A radical change in perspective could spare the nation a lot of grief down the road. Rather than subsidizing the auto makers directly (and almost certainly sucking Washington into their management), why not give Americans the financial incentive to accelerate purchases of cars and light trucks? The consumer-subsidy approach would be a less wasteful route to the desired end, as well as one that would leave a less toxic legacy of market intervention once the economy has recovered.
WE POSTED THIS WEDNESDAY:
REGULAR READERS KNOW THIS HAPPENS ALL THE TIME.
INSTEAD OF BAILOUTS, WHY NOT GIVE TAXPAYERS VOUCHERS?INSTEAD OF GIVING BAILOUTS DIRECTLY TO THE CORPORATIONS AND BANKS - (WHOSE PRIMARY RESPONSIBILITY IS TO THEIR STOCKHOLDERS AND CREDITORS), WHY NOT GIVE IT TO THE CITIZENS, THE TAXPAYERS AND CONSUMERS AND HAVE THE WEALTH TRICKLE UP!?!?
- GIVE EVERY TAXPAYER A $1000 CAR VOUCHER GOOD TOWARD ANY NEW CHRYSLER, GM OR FORD CAR.
- GIVE EVERY TAXPAYER A $1000 STOCK VOUCHER GOOD TOWARD THE PURCHASE OF ANY BLUE CHIP DJIA STOCK OR DJ FINANCIAL STOCK. (MUST BE HELD FOR FIVE YEARS.)
- GIVE EVERY TAXPAYER A $1000 HEALTH-CARE VOUCHER GOOD FOR THE PURCHASE OF ANY HEALTH-CARE PLAN OR ANY HEALTH PROCEDURE.
THEN, CITIZENS WILL BE PICKING WINNERS IN THE MARKETPLACE AND NOT CROOKED POLITICIANS.
- GIVE EVERY TAX PAYER A $1000 HOME IMPROVEMENT VOUCHER GOOD FOR ANY HOME IMPROVEMENT
SPREAD THE WORD. BLOGROLL US.
BTW, HEY GLENN:TRY READING TAB EVERYDAY; YOU'LL BE AHEAD OF THE CURVE!