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McCain, Obama, support wasteful hybrid car bailout bill for General Motors, Chrysler, and Ford

General Motors, Chrysler, and Ford want the government to double the 25 billion dollar loan guarantees from the 2007 energy bill. Auto spokesmen say the 50 billion will enable U.S. companies to bring new hybrid cars to market much sooner. Since the money has not been appropriated, this is not a done deal. Helping automakers build hybrid cars means jobs to many people, so both presidential candidates are playing this plan for votes. That money could be better spent to create more jobs and innovation.

Voters should consider several things about this huge financial package.

1. What are we trying to accomplish? Should American taxpayers save shareholders? Or improve the environment and the economy for as many people as possible? Cleaner, more efficient hybrid and electric cars, job creation, economic benefits, and an improved international American image can be accomplished by spreading the loans out to smaller companies.

2. How will car companies use the money? If the United States government lends cash to American automakers, it will let them carry on business as usual. Huge sums of money will go to executives, marketing efforts, and Washington lobbyists. Some money will go to research and development, but there are more efficient, proven ways to spark innovation. American taxpayers will help the car companies and the labor unions they grapple with to continue their costly squabbling.

3. Are the "Big Three," (General Motors, Chrysler, and Ford), the best agents of change for more efficient transportation? Recent history shows the short-term profit outlook ruling large corporate boardrooms. Smaller, nimble companies are more likely to provide answers to great challenges. The highest hurdle for efficiency improvements does not lie in hybrid car designs. While hybrid car design improvements will bring small increases in efficiency, battery solutions are needed most. All-electric, plug-in technology remains the gold standard. Better batteries will make possible better hybrid cars, plug-in hybrids and all-electric cars.

4. A proven way to make better hybrid and electric cars for Americans lies in design contests. Cash prizes fuel competitive innovation to bring novel solutions and private funding for technical problems. Relatively small low-cost loans to battery companies would support many teams to tackle problems from different angles. While the winner of such a contest would

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