State Incentives to Foreign Auto Makers

I've heard many proponents of the government bailout for the Big 3 decry the use of taxpayer money in the southern states to lure foreign auto manufactures.

Most of that taxpayer money was state taxpayer money, not printed money from the U.S. government that other states must help pay back. Those states that provided the incentives to the foreign auto manufactures must balance their state budgets.

I would bet those states also made the same offer to the Big 3. Those state bureaucrats could care less if the workers were union. All the state bureaucrats wanted was more jobs and more revenue from those businesses and workers who pay income, sales, and property taxes.

I'm against government interference in the market place. If however all 50 states can compete with the best incentives to lure business, then the consumer will benefit with a lower costs of goods and services.

The free enterprise system, if allowed to operate, will entice more producers when there is a profit to be made. More producers means some will have to be eliminated simply because there will be more supply than demand. This happens in all industries. It happened in housing. Now it has happened in the auto industry. There are more cars than buyers. This is good for consumers.

More producers means competition will reward the most efficient. The quality of cars has improved because of competition. Cars last longer. Consumers have had their liquidity reduced with the housing downturn. This means they will drive their current car longer before making their second largest purchase after a house, a car.

There are too many cars for the market. The government bailout enables producers to produce more of something the consumer is not buying.

Charles Bah Humbug