Back when GM needed to be bailed out, it was considered unthinkable that America would not have its own car companies. The big three auto makers were given the status of the Statue of Liberty or the Jefferson Memorial. When Romney was running his alleged opposition to the bailout was used against him.
So how can we go from bailing out American automakers to giving more taxpayer money to their foreign competitors? That is exactly what the Detroit News reveals that our government is doing, though you would never know it from the headline. The headline makes it look like a foreign company is simply making an investment based on an assumption of risk and a calculation of profitability: “Nissan launching production of Leaf in U.S.” But the story shows us some other factors:
“Nissan Motor Co. said it will begin U.S. production of its all-electric Leaf on Thursday in Tennessee as part of a $1.4 billion government loan. The Japanese automaker won an Energy Department loan in 2010 to build a battery plant in Smyrna, Tenn., and to retool to build the Leaf at its assembly plant next door. The Leaf will be built alongside the company’s gasoline-powered products. Nissan says it is the only automaker that manufactures its own electric vehicle batteries, at the biggest lithium-ion automotive battery plant in the United States.”
The story reports all this as if it is telling us of a sensible plan. But I don’t get it. How do we go from bailing out American companies in order to preserve them, and then go through money at their competitors?
But in addition to providing subsidized competition for American-made products, we also get all the signs that this is just another Solyndra waiting to happen:
“The Leaf’s sales have struggled and the automaker failed to double sales in 2012 as it had predicted and instead sold about the same number as in 2011. Last year, Nissan sold 9,819 Leaf EVs in the United States — up 1.5 percent over 2011. The Leaf is not the only struggling electric vehicle. Ford Motor Co. sold just 685 Focus EVs in 2012 — its first full year of sales — even though it has built 1,627, according to a report from Ford last week. Nissan CEO Carlos Ghosn has previously predicted that 10 percent of all vehicles sold by 2020 worldwide will be electric vehicles.”
So we are using taxpayer money, even in the midst of imminent doomsday from our debt, in order to entice a company to build vehicles that only a tiny minority of people wants to drive. Based on what? The prediction that ten per cent of all vehicles sold by 2020 worldwide will be electric is obviously a false prophecy and a delusion. It is not even close to reality.
I really don’t know how to properly respond to this sort of news. The whole reason why unemployment is so high right now is because of insane economic tampering by the government to the benefit of a few companies at the expense of the many. The extra American jobs that are promised will probably never materialize and certainly will never last. They are simply welfare expenses and they will cost the American taxpayer more jobs because the money to support them is taken away from the productive economy and misallocated to this “green” agenda.
We are ruled by arrogant children.