Auto bailout vs outright purchase
Monday, December 8th, 2008The headlines today claim that a bailout for US automakers is imminent. I’ve just sent Speaker Nancy Pelosi the letter below:
Dear Speaker Pelosi,
The amount of bailout money being asked for by the auto industry is far in excess of their current total value on the free market. An outright purchase of these entities by the US government would be a far better deal for taxpayers than simply handing over more cash that we really don’t have.
The major US automakers have owned patents for numerous fuel-saving and fuel-free technologies since the mid-70s. Rather than use these patents, they hid them away, preferring instead to save the money they’d have to spend on retooling their manufacturing facilities. As a consequence, foreign automakers took the lead, leaving US automakers in the predictable situation that they now face.
As the owners of these companies, taxpayers could do something the CEOs won’t… We could pull those patents out of their vaults and move forward aggressively with plugin hybrid, electric and V2G vehicles. In the process, we could radically reduce our dependence on foreign oil and slow global warming.
Lastly, I find it suspicious that when universal health plans are put forward by people like Rep. Dennis Kucinich, the American people are told that there’s not enough money to fund it. When something like the Apollo Project is presented as a way to slow or even halt global warming, we’re told that there’s not enough money to fund it. When Social Security needs some shoring up to be solvent into the future, we’re old that there’s not enough money to fund it.
And yet, when Congress decides on a unilateral war, or the wealthiest people in the country say that they need a bailout after seriously mismanaging their businesses, suddenly we have the money. It’s enough to make any taxpayer sick.
If you feel you must move forward on bailouts of any kind, then I ask just one thing: Each and every one of them must have far, far more oversight, preconditions and return on investment to taxpayers than anything that Congress is currently considering.
Thank you in advance for your consideration of these suggestions.
Sincerely,
Heidi Allen