I just read an interesting article in which Senator Bernie Morena from Ohio is interviewed on the subject of auto manufacturing and the role politics has to play in it. I was particularly struck by how right Senator Moreno is in regard to part of his argument and how absolutely wrong he is in the other. Even more interesting is that his two main points are basically doing the same thing, but he hates one and loves the other.
Senator Bernie Moreno and the Electric Car Mandate
Senator Bernie Moreno makes some fantastic points about the federal government involvement in encouraging car manufacturers to make electric cars. His point of view in this regard aligns perfectly with my own Libertarian ideology.
He argues that the government shouldn’t give electric car manufacturers tax money to encourage them to make such cars. He argues that the government shouldn’t be dictating miles per gallon fleet averages. Yes, I call out. Yes, yes, yes! The government should not be involved in these things. Let the car manufactures determine how many electric, hybrid, and gas-powered cars they make. They know their markets better than any politician. Senator Bernie Moreno, count me as a fan.
Senator Bernie Moreno and Tax Breaks for Gas Powered-Cars
In the very next paragraph makes some absolutely terrible points. He wants to give tax breaks to any company that manufactures in the United States. He wants to incentivize energy prices. He wants to prevent foreign car companies from competing in the United States by instituting enormous tariffs on foreign made cars.
The tax breaks Senator Bernie Moreno wants to give car manufacturers is exactly the same thing as giving tax rebates for every electric car sold. It’s the same thing. In both cases the government is encouraging manufactures to behave in a way the politicians think is best.
The problem with tariffs is that it destroys competition. Probably not many of you are Boomers like me but U.S. cars in the 1970s were horrible. You hoped they started in the morning and spent a huge amount of time at the repair shop. Japanese car companies came into the picture with better cars. The result? U.S. car companies started making better cars.
I Trust the America Worker and Manufacturer
Here is my base position. I trust the hard workers right here in the United States. I trust the owners of the big car companies. I trust the relationship between Unions and Executives in that they have a balance of power. Between the workers, executives, and competition we have a fantastic system.
When politicians think they know better and try to bribe one side or the other it destroys the delicate balance that built this great country.
You’re half right Senator Bernie Morena. Now wake up, get the other half right, and stop giving our tax dollars to either side. Let them build cars, that’s their job and they are good at it.
Tom Liberman
