From Melbourne, Australia Aug 10, 2009. The Australian government has been hard at work subsidizing their auto-makers in the country with a $200 million (Aus) credit line for local auto makers.
Politicians the world over are subsidizing the old-world industry of car making. Not much is going anywhere to new industries because small entrepreneurial firms have virtually no union jobs.
The big problem is there is too much auto production capacity world-wide and cars last far longer than they used to. In a world unencumbered by strong politician-union ties many of these plants would be allowed to shut down and these auto workers would find a new line of work just like when the buggy companies lost out to the new auto companies in the early 20th century. But instead these plants world-wide will be subsidized as if the auto industry in a strategic gateway into a strong economy tomorrow. Wrong!
An interesting new college model - Minerva
10 years ago
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