Iowa’s Waterloo Record reports that Ralph Nader said in a Thursday speech at the University of Waterloo that federal aid to automakers “should only be provided if the senior executives are fired, the boards of directors are discharged and replaced with public trustees and only fuel-efficient automobiles are made in the future.” Nader said, “So that’s the criteria — trusteeship, equity and the third is changing the nature of the product, making them fuel efficient and more compatible with safety and health.”
Buffalo Business First says Nader will be at Hilbert College in that city today “to talk about civics and environmental stewardship.”
4 responses so far ↓
1 PJWerner // Nov 14, 2008 at 2:19 pm
Either you or your source made a mistaken inference. Both the University of Waterloo and the Waterloo Record are based in Ontario, Canada. Not Iowa.
I used to live in Iowa and at first glance thought “Wow, Waterloo sure has changed a lot in the last five years–a new college and a new paper.” but alas.
2 paulie cannoli // Nov 15, 2008 at 12:33 am
Fixed.
Peter, I hope you don’t mind.
3 ACR // Nov 15, 2008 at 10:13 am
It looks like the folks in DC are hell-bent to give the stimulus package another try seeing as the first one didn’t have any real effect. This time it’s the car industry.
While I question the sanity of blowing cash around and running the national debt up even further; it seems inevitable - so this time let’s target unemployment, create AMERICAN jobs and pump up the economy all at one time.
Consider the following:
Manufacturing costs of motor vehicles are 65% labor (ie: W-2 income), that’s not all direct but due to suppliers. GM alone has over 1300 suppliers. (That’s a lot of jobs!)
1 in 10 Americans makes all or part of their income due to the automobile industry.
Money turns over 5 times in a year.
Thus a vehicle with a manufacturing cost of 20K produces 13,500 in W-2 income which in turn becomes a total of 65K in 12 months due to the 5 turnovers.
(This isn’t magic, it’s simply how the economy works.)
Our domestic car makers are saddled with legacy costs, most of which will reduce dramatically in 2010 due to contract changes. They need to survive to get there.
Here’s the solution
Instead of either shipping cases of cash off to car makers; or sending us all another check:
Send out a voucher for say $1,000 good on a motor vehicle for the percentage of the vehicle that’s domestic. (Civic = 70% Ford Explorer=80%)
Let those not interested in a new car sell or give away their vouchers (Ebay would be loaded with them in no time flat) and those that are so inclined can use as many as they can get their hands on up to the full MSRP of the vehicle.
This would bail out the car industry without giving them a dime directly
Further it would reduce the overall age of the nations cars which would in turn;
increase overall fuel economy
decrease pollution
Strengthen the dollar!
Since vehicles with a higher domestic content would be moving better this would reduce our imports, strengthening our dollar which would in turn further reduce what we pay for anything imported …like gas!
Jobs
Instead of simply saving some jobs, this would cause such a run that it would create some.
Pays for itself!
Since money turns over 5 times, and the vouchers are only good for the domestic content of the vehicle, every dime would be spent in the United States creating taxable income.
What is the income tax on 65,000 anyway?
(Remember? 20K manufacturing cost = $13,500 W-2 income x 5 = $65,000)
http://authentic-connecticut-republican.blogspot.com/2008/11/another-stimulus-package.html
I’m sure you’ll agree that this makes more sense than simply sending out checks; many of which will be used to buy new flat screen TV’s usually made in Malaysia or some such place.
4 more voices // Nov 15, 2008 at 2:54 pm
The gap between Nader’s demands and Congress’ final handout will be huge. The Detroit lobby which includes folks like Russ Feingold will dispatch such uppity talk from people like Nader.
Why are these lessons so difficult for Americans, and the craven representatives they elect, to learn?
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