The Democratic Echo Chamber

What will be the outcome of the bailout request by the big three automakers? The Democrats what to act as if they are innocent in the demise of the American automobile industry. On the contrary, the Democrats find themselves in the middle of the problem. Obama and the Democrats have to pay back the labor unions for their long-term support of the the democratic party. If there is no bailout this week, there is certainly on coming the future.

The American auto industry has been in a slow decline and with hourly compensation exceeding over $70 per hour, certainly adding to the problems. When gasoline cost exceeded $4 per gallon this summer, sales of automobiles and trucks came screeching to a halt. Americans started to demand that we should "drill here and drill now." Have Obama and the Dem's responded? Of course not. Though gasoline prices have dropped significantly over the past several months, Americans are still frightened or cautious that the price will climb to prices even higher than those experienced this summer and with good reason. The same democratic party that has promised auto labor unions billions of dollars to build cars and trucks that no one wants to buy, in part due to potentially high gasoline prices. What will Obama do? Well, on one day he will bail out the automobile labor unions, and the next day he plans on closing oil fields in the west, and make drilling more difficult and more expensive.

Labor is a commodity just like oil and tobacco. By design, our federal government taxed tobacco to prevent people from purchasing cigarettes because the consumer changed their behavior. That was their plan, and their plan worked. This summer, oil prices climbed to the point where the American consumer changed their behavior. They took more mass transportation, cancel vacations, car pooled, and they stoped buying gas guzzler cars. All things that would make the environmentalist giddy--- a win to the Democrats. Oh, but wait . . .what about Detroit and the automobile labor union. Don't worry, the Democrats will solve your problems too. Here is a few billion for a bailout to save your jobs.

The problem is that since labor is a commodity, you price the commodity too high you fail to be competitive in the market place. It happens with tobacco and oil, and now with labor. Dem's will argue that we need to have a strong industrial base. You bet!!! Buttressing a failing auto industry will only continue to support a weak industrial complex and take business from strong competitors. The loss of the big three will not mean that Americans will never buy a car made in the US ever again. The south is filled with successful automobile manufacturing plants. Those health companies will absorb the excess business created by the failing, poorly managed, Detroit companies. That's the free market. That is also the American way.