Capitalism versus Collectivism

"Don't make the workers pay for the capitalists' mistakes," was seen on a placard during a recent demonstration. The protesters wanted the government to "do something." But what can it do, but interfere with free markets, and shift the burden of the losses from those who deserve them to those who don't with other words let the taxpayers pay.

In continuation Mr. Obama is going to straighten out the U.S. auto business. In this world of collapsing asset values and depression, it looks like a laugh. The feds are taking over autos too. Rick Wagoner, GM’s big boss, was forced out on Sunday to let Mr. Obama put in his own man behind the wheel.

Further Obama said: "It is my hope that the steps I am announcing today will go a long way toward answering many of your questions you may have about the future of GM and Chrysler. But just in case of any doubt, if you buy a car from Chrysler or General Motors, you will be able to get your car serviced and repaired, just like always. Your warranty will be safe. In fact, it will be safer than it ever has been. Because starting today, the United States government will stand behind your warranty." Not was explained how long this guarantee will last; five years, fifty thousand miles, or until the Feds run out of money - whichever comes first.

In a free market economy, companies have the right to go broke. Then, their capital assets can be taken up by other businesses and put to better use. That's the way it's supposed to work in a capitalist environment. But now, everyone seems to have lost faith in the market's self-healing power. So the Government with taxpayers’ money at hand has to step in.

Nowadays we are confronted with situations we never thought about those were possible: as crash, depression, socialism, nationalization. Before we only had read about these in history books. Aspects so ridiculous, absurd and curious no one ever thought that could be repeated.

I know about other countries that did such stupid things. They protected their auto industries and people had to pay fortunes for an inferior car. It was thought that government could do a better job by running their economy than the private industry could do.

Do you still remember what led to that marvellous breakthrough in automotive technology for the Lada and the Trabant brands in the recent past? Both were cars so wonderful you had to wait many years to buy one. That was before 1989 in Eastern Germany, Russia and the Soviet Union, before the Wall fell. Thereafter you could buy a real car from the West. Consequently the Ladas and Trabants were left at the roadside with the keys in the ignition, just to get rid of these ‘good quality’ cars.

Now the question is why shouldn't the feds be in the car business? It appears to be stated in the U.S. Constitution. The so-called "Car Clause," I have been told: because every American will have the "right to life, liberty and a four door sedan." So this maybe was the argument to take over the automobile industry?

Above and beyond, the feds are already in the banking and insurance business that makes sense to also being in the car business, for every buyer needs insurance and finance isn’t it? Big time for business!
The U.S. government owns 80% of AIG. We've seen what a great success they're making of it. The losses were socialized and the gains privatized through the bonuses! Fantastic such deals. Apparently they can handle more of the same.

Imagine a Governmental sponsored car: For sure it would be a safe one, wheel chair accessible, and above all fuel-efficient. Maybe a GPS system for blind and drunk drivers, why not?

Congress will design new models as if it was another important piece of legislation. Solid chassis will be bolted with hundreds of provisions, amendments, exceptions and earmarks. And on top a solar collector to keep the greenhouse effects under control. Why not? Further a second steering wheel in the event of a sudden heart attack by its driver. Maybe a smoke detector that automatically shuts down the engine if the driver smokes a cigarette, and something else in the event he is using his mobile phone, or had forgotten to put-on his safety belt.

And now back to what kind of ‘ism’ we can expect:
The government runs industries to create as many jobs as possible so the Government will have to abandon the assembly lines. Workers will put the new cars together with old-fashioned screwdrivers and adjustable wrenches. So, it takes months to produce one car, and keep customers waiting for a new one to avoid over-production as we do have today. Looks like the Old Russian-Soviet Union system isn’t it?

We know by now there won’t be any capitalism left. Where I came out in this story looks like communism; this is not desired anymore. What about socialism that probably is too much to the left, and what about nationalism, hum that smells too much. My suggestion is collectivism.