How to Save Ford and GM WITHOUT Taxpayer Funds

So, in this article on Yahoo!, the author discusses why Ford and GM are in trouble right now. Here's a quote.

Critics say leaders over the years at Ford Motor Co., General Motors Corp. and what is now Chrysler LLC were slow to take on unions, failed to invest enough in new products, ceded the car market to the Japanese and were ill-prepared for the inevitable rise in gas prices that would make their trucks and SUVs obsolete.

Let's look at those. It is obvious the unions had too much power, but is that the car makers fault? Who gave the union monopoly power? Yep, government. Failed to invest in new products? Are you kidding me? They have been wasting money for years trying to build alternative fuel vehicles and that is really what this complaint is about. Not that they aren't building new cars; they aren't building new oil-free cars!

Did they cede the market to the Japanese? How do you answer that? Really, if anything, the Japanese were in position to take advantage of the oil crisis of the 1970s. Who's fault was that? I would say the government for putting the U.S. in the position to be in a crisis. But, the real market shift came when consumers chose a different car type based on the situation. Once again, if the government had allowed American oil companies free rein to drill, OPEC would not have had the power to restrict oil availability in the United States.

How about the last one? They were "ill-prepared for the inevitable rise in gas prices..." Umm...what the heck are they talking about? Inevitable? To who? Who said gas prices were going to rise so suddenly? That was not inevitable! But, assume it is, just for argument's sake. Exactly why did prices rise so suddenly? BIG SECRET WARNING! The rise in oil and gas prices pretty closely match the decline in the value of the American dollar. Let me repeat. As the value of the dollar against foreign currencies declined, the price of oil went up simply because oil is priced in dollars.

Now, who do you imagine is in charge of the American dollar? Oh yeah, the Federal Reserve, a part of government.

So, let's recap. The federal government gave unions excessive powers; the federal government banned drilling by American companies giving OPEC excessive powers; the federal government screwed around with the value of the American dollar causing the price of oil/gasoline to rise. Got that?

So, how do we "save" GM and Ford without taxpayers footing the bill? Simple. Get the federal government from trying to kill them. Here are a few easy steps.

1. Let the automakers negotiate with ALL workers, not just the UAW! If some workers choose to be unrepresented, so what? Allow rival unions to start up as well. Let Ford and GM negotiate with more strength, finding the workers who choose to work at the best price for the car makers.
2. Let American oil companies drill anywhere they find oil. Let them build new gasoline refineries all over the country. Lower the cost of gas and Americans will go back to driving the big vehicles that Ford and GM build.
3. Finally, repeal all excessive regulations that serve no purpose. I remember hearing once that regulations add $6,000 to $7,000 to each automobile. Drop that $6,000 and how many more Americans can afford a new car? Well, what about safety issues? Do you really believe the federal government can guarantee vehicle safety? I don't. But, it doesn't matter. There are groups out there that will gladly step up and offer voluntary safety testing. The cars that Ford and GM choose to test will come with a sticker from those groups and anyone worried about safety can choose to spend extra for that sticker. What about emissions? Well, what about them? Emissions are a trade-off, like everything else. Besides, the Japanese had developed a new, lower emission engine part, but the U.S. put in a new emission regulation in order to save Ford and GM. Did it work? Nope! So let's ignore that and let them compete.

So, will this work? I don't know. But guess what? It will work a heckuva lot better than just giving them taxpayer money. If they are burning through cash now, what will more cash do? Let me give you an analogy. Say you have a bucket with a hole in it and all the water you pour in keeps draining out. Which would you rather have happen, someone fix the hole in the bottom or give you more water?

However, there is one issue that needs to be addressed. You should notice that most of the problems facing Ford and GM come from environmentalists; that isn't a coincidence. Japanese car makers have a better environmental record WITHOUT government requirements. (They do it because they market to consumes who value that stuff.) If our goal is to save Ford and GM, it will cost environmental regulations. I am okay with that trade-off. Are environmentalists?

That is how you give Ford and GM new life. It may not work, but that will depend on consumers choosing to go back to their vehicles. The federal government unfairly targeted the American auto market and I have no problem going back to a level playing field. If Ford and GM fail then, it will be because consumers chose another car maker. And that's an outcome I can live with!