The Administration, in its recent rejection of market forces, has forgotten the one thing that, in spite of its faults, the market does reasonably well: picking winners and losers.The market does this much better than politicians who are manipulated by industry lobbyists. Foot-dragging Detroit has proved to be a loser. The industry is no place for Government money to be invested.
There is a place for government money: to improve unemployment benefits for laid-off workers; to provide widely available retraining opportunities for laid-off workers; and to finance early retirement opportunities for older workers.
To encourage the development of non-fossil fuel energy, the federal gasoline tax should be raised. I can just see in ten years time the re-tooled former plants of the auto companies and their suppliers turning out wind turbines and photo-voltaic cells. This will lead to a true renaissance of Detroit.
Sent to the New York Times