Friday, March 06, 2009

The Defense Dept. Argument for Supporting the Detroit Three

The Socialists in Washington keep blathering on about how we can't let the Detroit Three automakers die, because we might need them to build tanks, jeeps, etc. in the event of a major war.

But is that true?

The Humvee was developed for the military by AM General. At one point it was part of American Motors. (Apparently they weren't "too big to fail.") GM only got interested in them after the first Gulf War, when Arnold S. wanted to buy a civilian version, and they started marketing to the public.

Couldn't firms like Caterpillar, John Deere, Oshkosh (they make trucks, not jeans) or Manitowoc make tanks? What about companies like Mack or Peterbilt?

General Dynamics builds the M1 Abrams tank today. Why would that change?

This argument is, in short, a straw-man. There are plenty of other companies - no doubt struggling, but not in danger of extinction - that could fill this niche if we ever again face a major land war.

It is just an excuse to give more taxpayer funds to their friends, to take control of another part of the economy, and to take another step toward destroying free markets.

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