Not only is Barack Obama strutting around Washington today because he forced the CEO of General Motors to resign, he has now issued a set of guidelines which include having the US Government stand behind automobile warranties.
Never mind the significant difference between going to see your dealer about a warranty issue and having to go through government red tape, but think what this move has done to the world of competition.
No longer will one auto maker need to make its vehicles better than their former competitors automobiles because if they make crappy cars the government will decide how and for how long they will be fixed.
Because the incentive will be gone for one auto maker to make a car any better than any other auto maker and because they will not have to stand behind their products, we can expect equally crappy cars from all of them.
And though by the terms of this "warantee commitment program" Obama has said that it will only exist for a "finite period of time", as Ronald Reagan reminded us, there is nothing more permanent than a temporary government program.
This mind set of Obama's fits squarley within that defined by Winston Churchill:
Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virture is the equal sharing of misery.
Just wait until the government warranty company finds out how much the dealers like to pad warranty work.
Posted by: Tru Blu | March 30, 2009 at 01:01 PM
This could be the death knell of the American car industry. Another fine job we have done, right along with consumer electronics.
I just assume give them the money and hope they get their act together rather than backing up the already shoddy product that have on the road now.
Bobby
http://www.idlewordship.com
Posted by: Bobby McGill | March 30, 2009 at 11:48 AM