Oh, Motown

This morning, like many mornings lately, I am thinking about the future of Michigan, particularly Detroit and the people in the auto industry. I am finding some good articles in the Detroit Free Press, which seem to be saying that there are mixed feelings about the potential of federal aid for the automakers. Overall, it sounds like optimists (largely Democrats) are expecting some sort of relief in next week's lame duck session. But opponents (largely Republicans) are quite against any help, saying the industry should use the $25 billion in loans that were approved in September for retooling factories. Problem is, those loans were meant to be spent over 12 years and thus are not readily available - maybe they could be sped up? One Representative (Boehner, R-OH) has argued that no money should be given without "promises to reform the root causes crippling automakers competitiveness around the world."

http://online.wsj.com/article/SB122645159441719325.html

This article is interesting. I have little sympathy for the car companies, since it seems shocking that they continued to produce large trucks and SUVs when it is obvious that low gas prices won't last forever (let alone oil supplies period), and that when this happens a large shift in consumer preferences is likely to occur. There seem to be a lot of comments in the press that fuel-efficient cars simply can't be made cheaply enough, and that consumers don't want them, but want big trucks and SUVs, which still turn a profit...that's infuriating to me, because the companies are saying "What can we do? It's what the consumers want. We have to make money." But it's also true.

I have kind of a visceral reaction to the calls for forcing the industry to use "competitive labor," which would basically mean breaking the UAW. But I am sure concessions will have to be made by the union, and that assumes the industry is still around to negotiate with... But some are calling for a gas-tax or gas price hike to get consumers to consider the real cost of gas when purchasing cars. That would seem to be a reasonable strategy, although I hate to say people should have to spend more for gas when I know people who will be hurt by it. Still, facts are facts, and - as quickly as possible, anyway - we need to be shaping our communities around transportation options that don't require so much fossil fuels, and (imagine this) maybe even less driving. We know our current car culture can't last forever, and our health will be better off if we can research new technologies and put them to market.

Detroit Auto Makers Need More Than a Bailout

This article suggests massive restructuring of the industry, with government oversight and an eye towards re-privatization. There is something to this suggestion too, but I'd like to know how wide a range of options our public officials are considering. I don't favor a bailout (and certainly not one without performance standards for the companies), but don't want to see millions of people wrecked by the industry's collapse. But we have more than 2 or 3 options here, don't we? Could there be a combination of options, like:

- A (gradual) gas price "normalization"
- Aid or incentives for retooling factories (despite consumer preferences, which are unrealistic)
- Cuts in labor costs (but with government aid to help pay for things like pensions and health care). I hate to say it, but it could allow more people to have jobs, even if lower-paying, and may prevent the pains of straight-up outsourcing.
- A government and privately-sponsored research program, which would let people further explore fuel-efficient transportation options. It could be the next great public investment in technology (not unlike the space race), create a pool of publically-owned intellectual property that could be used by any company who wants to try bringing it to market. We know that it's new companies that create the most jobs, and they are more likely to take a risk on new products...and frankly, why not? What do we have to lose, exactly?
- A break-up of the auto industry into smaller parts, likely with new management--this might be accomplished by a request-for-proposals from existing car companies and entrepreneurs, using existing technology and any that comes from the public-private research project above. It might even be reasonable to use existing factories and tools from the Big 3 for these projects, if the old dinosaurs went out of business or had to liquidate their capital.

I think it should be less about the existing companies, and more about how to get more technology, available cheaply, and more new jobs. About people, our environment, and a broader notion of "economy." Can't we be more creative?

What do you think?

Post-election post

This morning is one of high feelings, and feels auspicious (if that is the right word). I am just dizzy with excitement over Obama's election. For the first time in my life I was excited to vote in a Presidential election, and for once I look forward to the coming years as a time which may see a rise in our nation's morale and pride (not the divisive and righteous kind), and hopefully a widespread spur to action that will help our country into the future.

While that may sound too rosy, I don't believe this will all be the product of Obama's Presidency--and besides, it is dangerous to place too much hope and expectation on any one person. But I do think that, like myself, many people have been craving something for our country that no political leaders have been offering, and this election is a big expression of that craving. Unlike the past two elections that left me a little heartbroken and confused, this is a validation of the way I have seen America for years--a more balanced mix of "red" and "blue" states, with an upper Midwest that is true to its more social-democratic roots. Still a lot of fearful people and unfortunately racism across the nation, but at the end of the day a majority of people just who want to be forward-thinking and are finally willing to address some of the huge challenges we have with our domestic politics and economy (not to mention international standing). While there is still plenty of room for disagreement, over taxes and military strategy in particular, I am comforted by the fact that we just saw the highest voter turnout in several decades, and that enough people want the changes promised by this new leader. I pray that he won't let us down by failing to do as he has promised with taxes and job creation - issues I view as the meat and potatoes of current day politics. Can we please strengthen our nation with policies like the progressive income tax, without scaring moderates with over-regulation? Some things just have to be done, ya know?

That said, we have to remember that one person can't do it all. My biggest hope: let us be moved to action in whatever ways we can, to make the progress we've all been talking about! Be it energy, jobs and innovation, public transit and infrastructure, education...do something if you want it.

This morning I also spoke with my mom on the phone, who (while I don't fully understand yet) is disappointed and fearful about the Democrats' election. I didn't call her this morning, figuring she might not want to hear from her Obama-loving daughter so soon after election day. But thankfully she called me while we were each reading the morning paper.

Naturally, we had some back-and-forth about the election, she expressing her fear and foreboding about higher taxes and Pelosi-Reid in the Senate (I believe spending was her concern). She is worried because she knows little about Obama, claiming that he has "kept everything secret" about his life, like the schools he went to, or his grades, and of course his association with that crazy, vulgar, racist preacher...gah. All I could say in response is that I think he's been pretty open about his past, and the information is out there and has been coming out for 2 years; the "evil associations" name game doesn't do much for me since both parties can play that card if they want to--and correct me if I'm wrong, but are there not plenty of crazy, vulgar, even racist, white preachers around this country? Come on now. Just come on.

But hey - can we at least celebrate the success of a pro-worker party? That record is clear, with the vast difference in union support between the candidates and parties. This is one thing that is without a doubt good for us...it's at least something to celebrate, no? mm? She seems worried, despite all evidence to the contrary, that Obama will spend tons of our money on welfare programs for the poor...which fascinates me, since (a) this has not been part of his platform and (b) she experienced the benefits of public assistance, as well as the vitriolic attacks from people who think welfare is a lazyman's easy street. (People who joked that they should quit their full-time jobs with the state and go on the rolls, since it looks so good. Until she pulled out the check stub and told them where to go.) We both know that kind of talk is absurd, but isn't that the Republican Line? I am a little baffled at where the disconnect is. I mention this connection, and my confusion there, but I don't belabor the point. We've got plenty of time to try to understand each other after all, and at least we're keeping it civil. I think we could all use more practice talking about these tough issues with people we love...even if we don't agree, the ability to have dialogue and not shut down is important. Even if you have to change the subject often.

We talked about the good, the bad, and the chill - moving on from national hopes and fears, she informed me about the passing of Michigan's Proposal 1, which legalizes medical marijuana for the severely ill - score for humanity! Even if it's just one step toward reason, I am heartened. (Especially, though I don't say it, after their anti-gay legislation the other year. Michigan, give us something to go on here.) On this victory at least, mother and daughter agree. Yay!