Sunday, December 14, 2008

Yankees Versus Rebels

Robert Reich describes the new war between the states over auto manufacturing:
"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."


  1. As a taxpayer in Tennessee, I am fully in favor of a loan to the Big 3. Yes, I pass Nissan HQ each day, but I also realize that Saturn is just down the road. Ultimately, the Detroit 3 has a huge impact on the US and by allowing them to fail it would be devastating to the US economy. As for Bob Corker...he had no problem bailing out Wall Street but then again, he receives significant campaign contributions from banking.

  2. I just realized if the big 3 go under (in particular GM), I'll never own a Cadillac. I have little chance of owning one now, but it was always nice to have the hope...


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