The Auto Market Is Hardly a Free Market

The Auto Market Is Hardly a Free Market

  • Submitted By: yas1267
  • Date Submitted: 12/15/2008 1:34 PM
  • Category: Business
  • Words: 448
  • Page: 2
  • Views: 369

The auto market is hardly a free market...these Southern Republicans are grossly ignorant and/or bald faces liars.

1) All of their states gave huge incentives, translation GIFTS to foreign automakers to set-up shop in their states...not loans, GIFTS that came from their states taxes.

2) The U.S. is the only auto manufacturing country in the world that does not have a level playing field in labor costs. In the U,S the Detroit Three have to deal with Unions due to the Wagner Act and NLRB. The transplants are in "right to work" states and are non-union. In Japan, Korea and Germany, every single auto manufacturer foreign of domestic has to deal with union labor.

3) Tariffs are stacked against the Big Three or anyother way of looking at it against the US. All foreign automakers can import their cars, engines and tranmissions into the U.S. at 3 to 5% tariffs. US made cars and parts are exported into Europe at tariff rates of 10%, into Korea at an effective rate of 8% and the Japanese market is effectively closed.

4) Foreign Automakers receive substanstial subsidizes from their countries ranging from subsidized research (Japanese hybrid batteries for one), to outright partial ownership by the country (Volkswagon), to paying for Health Care and Pension expenses so the auto companies do not, to manipulating their currencies to ensure their cars are produced in their home countries at artificially low rates. Currency manipulation ensures that when dollar profits from U.S. sold cars go back to Japan and Korea it converts into a higher Yen or Won no matter where the foreign car was made. All of these facts were substantiated by ALL of the outside economists that testified before Congress at this past weeks hearing and prior.

5) These same Senators also happen to belong to States that use way more Federal dollars than they send to Washington http://www.taxfoundation.org/research/show/22685.html
....even after they have bribed all these foreign...

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