Monday, March 30, 2009

The Government Warrantees U.S Cars?!

Just when I think the Obama administration couldn't do anything more unwise, he announces that the government will ensure that all American-made cars receive warranty coverage.

Why do I believe that's so unwise?

1. Can you just imagine: The government will have to set up inspection centers to verify, for example, that a balky engine is caused by a factory defect rather than the need for new spark plugs, which is the owner's responsibilty.

2. As with many government giveaways, many people will fabricate claims. Think of how much fraud exists in, for example, welfare and Medicare.

Is it really worth yet more of our tax dollars to create yet another bureaucracy to prop up an industry that makes bad, overpriced cars, thereby stifling competition from new companies that might build excellent ones?


Anonymous said...

Who would ever buy a GM car after hearing that?

I'd bet anything that the car guarantee would be a foreshadowing of government health care. Imagine taking your 5-year-old Chevy to a government-run repair shop, and hearing the mechanic say that they can't get the part needed because only so many can go around to Chevys that old, and the rest go to Chevys 4 years old or younger.

It wouldn't occur to him how bad it could get until the same driver is 70, needs a kidney transplant, and hears the same thing, but it's his body and life that's worth less, not his car.

I'm beginning to pity the person who will be president next. The mess they'll be expected to clean up will be massive.

Archivist said...

This is among the more astonishing ideas posited by this young administration, and that's saying a lot.

I fully expect the government to back warranties in the event GM or Chrysler go bankrupt -- for a variety of reasons, that might actually make sense. But short of bankruptcy, it is an absurdity, an affront to the free market system.

The best solution for GM and for the nation is bankruptcy. GM needs to extricate itself from crippling union contracts and pension and healthcare obligations it can't afford.

The current "solution" is akin to putting a bandage over a gunshot wound.


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