Previously I argued that this country has been evolving from an agricultural society to a manufacturing society and is now moving to a service industry. I wondered if the demise of the car industry in America was simply an extension of this evolution and as such should be allowed to die and not be saved with an infusion of cash by Congress.
It was brought to my attention that allowing the car industry to fail will have a domino affect on all the other companies dependent on it. A multitude of smaller companies who provide materials to the car industry will then fail if our car industry goes under. Another argument is that the car industry had been producing what people wanted – big cars. Now the demand has suddenly changed to smaller more fuel efficient cars but the auto industry needs a few years to change their production lines. So the bailout is simply to help the industry while they redesign their factories to start providing smaller cars.
Both are valid arguments. As for the latter one, I remember the 1970s when we went through this the first time. Everyone worried that our car industry would die because Japan was making smaller cars and our industry made big gas guzzlers. Thirty years later and I don’t understand how the exact same thing can be happening. How could they have once again been so off guard as to let this happen again?
As to the satellite companies that could fail if the car industry goes under I have always wondered if Ford or Oldsmobile or any of the original car makers worried that they were putting the horse and buggies out of business. No one really cared about the blacksmiths or leather makers or any of the other businesses dependent on horses when the country evolved to cars as our means of transportation. Except, you know what? These men didn’t go on the dole when their businesses failed. Instead many of them evolved from servicing horses to cars. Leather makers began to make car seats instead of saddles and buggy seats while stable masters swept out their stables and converted them to garages. Given a chance, people will evolve and grow. But when you put them on welfare then you are denying them the incentive to change.
So maybe by allowing our car industry to live on we are actually hampering this country. Perhaps there are young inventors out there with great ideas for new types of cars that don’t need to be powered by fossil fuels. I have every belief that someone will somehow fill the void left by the car industry and that this new industry would help this country further evolve away from our dependency on gas. But by giving our existing car companies bailouts to continue as is then the government is stifling our chance to grow and evolve. And if you spend all of your energy treading in water in the same place then you will eventually die without ever moving forward.
I was unsure when I started this if I thought the government should bailout the car companies or not. I think I have now convinced myself that it would be detrimental to this country in the long run. In the short run, yes, for the demise of our car industry will be painful but I am now of the belief that out of this pain will come a new and better industry and country.
As for this country moving towards service industries and away from manufacturing, perhaps that isn’t that bad after all. What would be wrong with having a nation of thinkers, inventors and service companies to help make this a better world? Don’t forget that services also include hospitals and schools and not just banks and hotels. Plus for those who still want to work with their hands, there is still a need for plumbers and mechanics and builders among many other highly paid skilled service jobs.
There would always be some manufacturing, just as we still have some farming but it wouldn’t be our primary source of employment. Besides, show me one factory worker, one immigrant, one migrant worker, one welfare mother who doesn’t want more for their children and that more always includes a higher education. So let’s move forward and become that nation of thinkers and inventors. Let America supply the world not only with our food and products but also with our ideas and knowledge and inventions.
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