Bailing Out the Auto Industry is a Horrible Idea

I’m going to ask one simple question — what incentive do the Detroit Three have to become more efficient, if we show them that we’ll pay for their losses? 

The Auto Industry Financing and Restructuring Act, if it hadn’t been shot down by the Senate, would have put in place a presidential designee, who would have the power to tell the car companies they must produce “a product mix and cost structure that is competitive in the United States market”.  The remove the doublespeak, there would be a government entity that could tell the car companies what cars to make, and how much they can be sold for.  We’ve socialized banks, and now the government wants to socialize the bloated auto industry.  Fantastic.