"A new Civil War is breaking out when it comes to automaking in America, and it was evident in the lineup yesterday of senators for and against bailing out Detroit. Japanese, Korean, and German automakers are now building 18 auto assembly plants in the United States, none of which is unionized. Kentucky (home to Senate Republican Leader Mitch McConnell) already has Toyota's biggest auto assembly plant outside Japan. Tennessee (home to Senate Rep. Bob Corker, who came up with the "chapter 11" bailout amendment which was the basis for an attempted compromise yesterday) houses Nissan's North American headquarters. Alabama (Senate Rep. Richard Shelby) hosts a range of foreign automakers.
"There's no reason to suppose the good citizens of Kentucky, Tennessee, or Alabama are particularly excited at the prospect of handing over their taxpayer money to competing firms and their workforces, especially since almost every one of these states already gave foreign firms big tax-payer supported inducements to come and create jobs there."
Sunday, December 14, 2008
Yankees Versus Rebels
Robert Reich describes the new war between the states over auto manufacturing: