Friday, June 19, 2009

Auto Atlas Has Shrugged

Mike from The New Clarion in this article talks about the state of the auto industry in America being discussed at the National Summit on the economy in Detroit. He talks about Nolan Finley, editor of the Detroit News who laments the fact that nobody seems to care about business and industry any more. In reponse to his charge that no one in charge is much interested in hearing their ideas for fixing things, Mike highlights the role of media:

Could it be all those past editorials claiming that some taxes, some emission regulations, some fuel economy regulations, some labor regulations and other government mandates were noble and virtuous goals, but we mustn’t over do it by trying to be too noble and virtuous. Could it be that people no longer believe that it’s virtuous to take poison with their food?
Some of the media morons might be having some doubts but the majority still thinks that a little bit of poison will act like a digestive and be good for you. The conference had a CEO wanting reviving business by making it "cool." So it's not the principles involved but the cool factor which is important. In response to this appealing to "feelings", Mike say:

Never mind appealing to anyone’s mind, their reason, or their own moral and constitutional right to make the cars they want to make with the kind of fuel efficiency and emissions people are willing to pay for. No. We must figure out a way to make life, liberty and the pursuit of happiness and the prosperity it brings, ‘cool’. In a culture where sacrificial emotions take precedence over reason, the more consistent emotionalists will prevail. That’s why Obama, Pelosi and Reid are now in charge.
Mr. Finely also talks of the free market lesson one of the Senators got from a CEO who just ended up extolling the Senator to fine tune his powers to distribute the resources. This is a classic case of "sanction of the victim." Instead of standing up to these leeches, businessmen all over the world are convinced about their mortal sin of being producers, originators of that horrible word, dare I say it - profit. They should listen to Yaron Brook, who said in his keynote speech to the Virginia Republicans," businessmen are the heroes."

I see Industrialists coming on TV every year after the broadcast of that marvel of Socialism - budget, the annual exercise of allocation of resources in India by the Finance Minister. Their companies are in hands of one man and I have yet to see even one business federation give the budget a thumbs down. They just make polite noises (could have been better.) The business schools need to make Ayn Rand's Capitalism: The Unknown Ideal mandatory reading.