Overnight Thread (genghis) | Main | Top Headline Comments 11-20-08
November 20, 2008

Psst...Obama...It's Called "Capitalism"

A Dartmouth economist has a message for the president-elect.

The first global cost of a bailout could be less foreign direct investment (FDI) coming into the United States. On Sunday, President-elect Barack Obama asked, "What does a sustainable U.S. auto industry look like?"

Well, it looks a lot like the automotive industry run by "foreign" car companies that insource jobs into the U.S. In 2006 these foreign auto makers (multinational auto or auto-parts companies that are headquartered outside of the U.S.) employed 402,800 Americans. The average annual compensation for these employees was $63,538.

At the head of the line of sustainable auto companies stands Toyota. In its 2008 fiscal year, it earned a remarkable $17.1 billion world-wide and assembled 1.66 million motor vehicles in North America. Toyota has production facilities in seven states and R&D facilities in three others. Honda, another sustainable auto company, operates in five states and earned $6 billion in net income in 2008. In contrast, General Motors lost $38.7 billion last year.

The difference, in part?

Ahem.

An auto bailout would do more than simply reward poor business practices. As the article points out, it could have greater repercussions in the global market, including diminished investment in the United States, expanded protectionist trade policies in other countries, and a reduced foreign demand for US assets.

Plus, I hate to nitpick, but to steal one of Glenn Reynolds' favorite sayings, I'll believe the US auto industry is in crisis when its executives start acting like there's a crisis.


digg this
posted by Slublog at 09:04 AM

| Access Comments




Recent Comments
JB1000, EAJ: "I am hoping Mr. Kimmel has the 'joy' of being told ..."

Ruthless: "Gawd, I gotta go eat something. You guys are addic ..."

katya the designated driver: "We cut our cable two years ago. Rarely miss it. ..."

Bitter Clinger and All That (Back from the Dead): "One mo' step, i'll juke you. ..."

HILLARY!!!: "Try and take the hot sauce outta my purse!  I ..."

Nevergiveup: "it's not your night. Posted by: Donna&&&&&&V. at ..."

Tami[/i][/b][/s][/u]: "505 Tami- Thank you for the reply. Answered Pos ..."

illiniwek: "wow ... most of the way through the "emotional con ..."

Ladylibertarian: "I first read that as "shaved" and proceeded to dry ..."

sven10077: "439 Posted by: Eromero at October 16, 2017 09:31 P ..."

josephistan: ">> I first read that as "shaved" and proceeded to ..."

chavez the hugo: "502: brilliant. an empty lambeau would be one for ..."

Recent Entries
Search


MuNuvians
Polls! Polls! Polls!
Frequently Asked Questions
The (Almost) Complete Paul Anka Integrity Kick
Top Top Tens
Greatest Hitjobs

The Ace of Spades HQ Sex-for-Money Skankathon
A D&D Guide to the Democratic Candidates
Margaret Cho: Just Not Funny
More Margaret Cho Abuse
Margaret Cho: Still Not Funny
Iraqi Prisoner Claims He Was Raped... By Woman
Wonkette Announces "Morning Zoo" Format
John Kerry's "Plan" Causes Surrender of Moqtada al-Sadr's Militia
World Muslim Leaders Apologize for Nick Berg's Beheading
Michael Moore Goes on Lunchtime Manhattan Death-Spree
Milestone: Oliver Willis Posts 400th "Fake News Article" Referencing Britney Spears
Liberal Economists Rue a "New Decade of Greed"
Artificial Insouciance: Maureen Dowd's Word Processor Revolts Against Her Numbing Imbecility
Intelligence Officials Eye Blogs for Tips
They Done Found Us Out, Cletus: Intrepid Internet Detective Figures Out Our Master Plan
Shock: Josh Marshall Almost Mentions Sarin Discovery in Iraq
Leather-Clad Biker Freaks Terrorize Australian Town
When Clinton Was President, Torture Was Cool
What Wonkette Means When She Explains What Tina Brown Means
Wonkette's Stand-Up Act
Wankette HQ Gay-Rumors Du Jour
Here's What's Bugging Me: Goose and Slider
My Own Micah Wright Style Confession of Dishonesty
Outraged "Conservatives" React to the FMA
An On-Line Impression of Dennis Miller Having Sex with a Kodiak Bear
The Story the Rightwing Media Refuses to Report!
Our Lunch with David "Glengarry Glen Ross" Mamet
The House of Love: Paul Krugman
A Michael Moore Mystery (TM)
The Dowd-O-Matic!
Liberal Consistency and Other Myths
Kepler's Laws of Liberal Media Bias
John Kerry-- The Splunge! Candidate
"Divisive" Politics & "Attacks on Patriotism" (very long)
The Donkey ("The Raven" parody)
News/Chat
Archives
Powered by
Movable Type 2.64