AUTO-Bailout - and the economy

ONE Last (I think) discussion piece on the Auto Industry.

Am I the only one (no, I don't thinkso....) that understands that about

One in ten jobs

in this country are related to the automobile industry???

What I see as the main (and perhaps only reason to save the Detroit auto industry is that the amount of new unemployment that would be created will throw us into what the Fed chairman (Mr. Ben B.) received his Doctorate for studying, what I call, "Depression 2.0.


The sudden demise of Chrysler, and closing of myriad auto plants will not only affect the 40-100,000 direct employees of this company, but will also affect workers in companies downstream from them.

(this paragraph really belongs in the 'useless facts you already should have know department')

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The auto industry under Henry Ford quickly became a totally integrated industry, which started out creating everything, and slowly started to shed manufacture of some items, by either spinning out ownership of some plants or simply by subcontracting.

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Now. With unemployment (as of 2/1/09) standing at 8.1 percent officially (with some estimates as high as 10% unofficially, and up to 28% in Detroit), we approach reason one why we need to save the automakers:

* Adding 300-500,000 jobs in One industry to the "been there, done that" department will not help our country recover.

Reason two adds critical details on what to do with all this idle labor.

* Using the manpower of these jobs to concentrate on "green manufacturing", and Mass/Heavy/Light ** transit will provide thousands if not hundreds of thousands of these jobs (AND will ALSO help to resolve some 'downstream' [read:Dealer related] job redirections that will need to happen.

Review:
Reason 1: 100K-500K jobs eliminated is not good in economic 'recession'
Reason 2: re-directing these jobs into GREEN economies will help US manufacturing base.

'nough said today.. Schluffy calls!

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** My definitions of XXX Transit:

Mass Transit: High impact /(often underground=EXPENSIVE) Commuter rail projects that bring jobs to the people (and people to the jobs--the two are very different, see an older post I wrote about Robert Moses, how he destroyed the NYC /LI/NJ economy by deliberately refusing to consider anything but automobiles for transportation HERE.)

Light Transit: Think streetcar. Think electric powered bus in a dedicated lane . Think FAST construction, FAST payback times. Think Baltimore (?..)

Heavy Transit: NEW Freight Rail lines, designed to OFFLOAD existing (18 wheel) tractor trailers from existing highways, by running down the CENTER of existing highways.

Think Heavy construction, but the ABSOLUTE fastest and most critical infrastructure payback that we can create for our country. (See here) . Creating Heavy Rail will eventually lead to more interconnected rail systems and fewer trucks. This new system must NOT be owned by any existing rail-roads, or monopoly conditions will be re-created.

Energy: Save our Environment NO offshore DRILLING

just say NO. Traitor Bush (and John McCain too) has just proposed that we re-open the Oceans for Drilling for oil

This is bad because:

1) it will take 7-10 years to See ANY oil from any wells found and developed.
2) wasting (and trying to perform a bait and switch) the American People's time to follow this boon-doogle.
3) It will NOT reduce the current price of gas.
4) it will Not (ever) reduce future gas prices.

5) The RIGHT answer is to the cost of gas includes:

1. An IMMEDIATE cessation of federal (and state) taxes currently required for non-diesel fuels, such as Waste Vegetable Oil, Natural Gas, (Compressed, or otherwise)
2. An immediate Tax CREDIT to those CREATING new alternative FUELS-- WITH A limit. Subsidies will AUTOMATICALLY phase OUT when the producer goes over X barrels produced per year. This will make sure that the new producers do not get rich, when they are already making money... I would say this limit should be (perhaps: 50% of subsidies end at 25,000 Gallons {per year}, and all will cease at 50,000 Gallons per year)
3. IMMEDIATE tax credits for alternate energy RESEARCH.
4. Immediate TAX credits for ALTERNATIVE fuel DEVELOMENT (said that already..oh).
5. Stricter Recyling requirements for restaurants. No dumping of oil.
6. Research getting engine oil (used) to be used in cars as gasoline.
7. IMMEDIATELY re-instate the Carter energy policy (reversed by Good old Ronny Reagan)
8. IMMEDIATELY DOUBLE the newly enacted CAFE energy standards. REMOVE the 'city driving' option, double the goal to 50 miles within 7 yeas.
9. Encourage Car companies to import their European cars into the US, by verifying import standards will not be affected.
10. New yearly Income Tax Surcharges on all new SUV or Mini-Van purchases that do NOT meet 25 miles per gallon (numbers will rise every year)
11. Immediately banning the incandescent lightbulb. Fund and RESEARCH for implementation of a WHITE LIGHT LED replacement bulb, to be sold for under $5.00 within 10 years.
12. Immediately banning sale/(and eventual banning of display of) of ALL holiday lights that are not LED based. Enforcement by an income tax surcharge. Violations (and those documenting them) will be rewarded/enforced by giving a percentage of electric rates for December to those sufficently documenting the display.
13. Immediate Green Home building program...percentage tax savings for building/retrofitting homes, items ranging from solar panels, to heat pumps, to solar walls, to elimination of all incandescent light bulbs. All new buildings (within X years) MUST conform to these new "greener" standards.
    
14. Elimination of the "cap" on tax incentives on plug-in hybrid cars.
15. Encouragement of plug-in charging stations for hybrids.
    

Mark Brown
6-19-08