by Raymond Bilodeau

Created on: March 31, 2009   Last Updated: April 03, 2009

It is interesting to see the "free market" theorists try to argue that government should not be involved in private business operations. The robber barons of Teddy Roosevelt's day appreciated the government intervention that allowed them to get "free" land for railroads from Indians or whoever controlled the lands. Included in the package was army protection against the Indians. Later federal interventions on behalf of "private business" included police and army protection from union organization efforts. Current protections include a whole host of tax preferences, protection from environmental damage costs, price supports and outright subsidies.

So, let's rewrite the question properly: How much government money/protection/subsidies must a government provide before it can legitimately have a say in the running of automakers? Note that no one is saying that the government should run - on a day-to-day basis - any automaker. The Obama Administration is saying that billions of dollars in taxpayer money give the right to make sure the money is going to be spent on improving products, not private jets, undeserved bonuses, fancy buildings, private chauffeured limos, several houses all over the world for top management, waiver of paying costs of environmental damages, resistance to changing products so they do less environmental damage.

And we have not even touched on how the automotive industry has resisted using new plastics/compounds that are dent-resistant, never rust and would be cheaper to repair. Over the last few years, the automotive industry has been making cars out of easily-assembled sections, most of which are made outside the US. You have to buy the whole unit, not just a bulb or a part. They spent millions of dollars to defeat emission limits in Congress and in California, disregarding all the science that says such emissions are harmful to the environment and to living creatures. These protections were purchased by the automakers and those expenses were tax deductions. The harm caused great increases in costs to government (taxpayers) for health care, environmental remediation, balance of payments (since foreign automakers were quicker to move to more environment-friendly vehicles and better-made vehicles than US automakers).

We have crossed the threshold amount for any fair-minded person to say that the government has a right to intervene in the operation of the automakers. If businesses want to be free of government intervention, they should also give up the "free" government welfare for the businesses. Enough of the take and take, with no give-back.

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