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	<title>Liberty&#039;s Lifeline &#187; czar</title>
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		<title>Morgan Freeman, Meet Frederick Douglass</title>
		<link>http://libertyslifeline.com/2011/09/28/morgan-freeman-meet-frederick-douglass/</link>
		<comments>http://libertyslifeline.com/2011/09/28/morgan-freeman-meet-frederick-douglass/#comments</comments>
		<pubDate>Wed, 28 Sep 2011 16:00:16 +0000</pubDate>
		<dc:creator>Bill O'Connell</dc:creator>
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		<description><![CDATA[In a recent interview on Piers Morgan Tonight, Academy Award winning actor Morgan Freeman, once again, laid down the charge that has no proof, that the Tea Party is racist. I like Morgan Freeman. I think he is a great actor. But with this display, I also think that he needs to get out of [...]]]></description>
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<p>In a recent interview on Piers Morgan Tonight, Academy Award winning actor Morgan Freeman, once again, laid down the charge that has no proof, that the Tea Party is racist. I like Morgan Freeman. I think he is a great actor. But with this display, I also think that he needs to get out of the Hollywood bubble that includes such deep thinkers as Michael Moore and Janeane Garofolo, and actually visit a Tea Party gathering, (they are very safe places to go to). Here is his thinking. The Tea Party is opposed to Barack Obama, therefore the Tea Party is racist. Game. Set. Match. Gee, that was easy. Does Morgan Freeman know who Herman Cain is? How does he explain that one?</p>
<p><span id="more-4401"></span>Here is Morgan Freeman in his own words:</p>
<p style="text-align: center;">
<p><a href="http://www.youtube.com/watch?v=qSbjRElWv5I&#038;fmt=18">http://www.youtube.com/watch?v=qSbjRElWv5I</a></p>
</p>
<p style="text-align: left;">It is simply because he is a black man. It has nothing to do with 9+% unemployment; it has nothing to do with an additional $5 trillion in debt; it has nothing about having a health care program that the majority of Americans have consistently opposed crammed down our throats; it has nothing to do with our abandonment of Israel; it has nothing to do with Obama now being less <a title="Change!… Obama’s Approval Rating Now Lower Than Bush’s 2008 Rating in Arab World" href="http://www.thegatewaypundit.com/2011/07/change-obamas-approval-rating-now-lower-than-bush-in-arab-world/" target="_blank">popular </a>in the Arab world than President Bush was in 2008, despite President Obama grovelling to every dictator in that part of the world after taking office. No, it can only be racism. Talk about being stuck on stupid.</p>
<p style="text-align: left;"><strong>Meet Frederick Douglass</strong></p>
<p style="text-align: left;">Maybe Freeman is desperately trying to salvage the historic moment of having the first real black president (apologies to Bill Clinton, the self-proclaimed first black president) being elected by 53% of the American people and in three short years, destined to go down as one of the worst presidents in American history, alongside James Buchanan and Jimmy Carter. Perhaps Mr. Freeman should study Frederick Douglass, a former slave, who led the abolitionist movement and helped bring an end to slavery.</p>
<p style="text-align: left;">In a book by K. Carl Smith, Mr. Smith lays it out and shows how far we have come from our founding principles, principles that were embraced by Douglass. He calls them Douglass&#8217; four principles;</p>
<ol>
<li>Value #1 &#8212; Respect for the Constitution</li>
<li>Value #2 &#8212; Respect for Life</li>
<li>Value #3 &#8212; Limited Government</li>
<li>Value #4 &#8212; Personal Responsiblity</li>
</ol>
<p>Based on that list of values Frederick Douglass would fit comfortably within the Tea Party. According to Morgan Freeman, Frederick Douglass is a racist, because he too would disagree with Barack Obama.</p>
<p><em>Respect for the Constitution</em></p>
<blockquote><p>&#8220;About four years ago I became convinced that it was not necessary to dissolve the union between the states, and that the Constitution of the United States not only does not favor slavery, but is is, in letter and in spirit, an anti-slavery document which demands the abolition of slavery. This radical change in my opinions logically resulted in my actions as well.&#8221; &#8212; <em>Frederick Douglass, &#8220;My Bondage and My Freedom (1855)</em></p></blockquote>
<p>Where does Obama stand on the Constitution?<em></em> Since coming to office Obama installed czars for almost everything. By calling them presidential advisers he could avoid Senate confirmation.Here is what Democrat Senator Robert Byrd had to say about Obama&#8217;s use of czars.</p>
<blockquote><p>Before passing away last summer [2010] Byrd, a nine-term senator who twice chaired the powerful Appropriations Committee, blasted the president’s czar appointments as unconstitutional and a clear attempt to evade congressional oversight. He referred to Obama’s “czar strategy” as an unprecedented power grab centralizing authority in the White House.</p></blockquote>
<p>Obama is also of the school of thought that the Constitution is a &#8220;living, breathing&#8221; document that fluidly changes with the times. In other words, it means nothing to him other than what he wants it to mean to support his objectives. He believes that it is perfectly constitutional to force every American to buy health care insurance as a condition of being an American, whether or not you want it.</p>
<p><em>Respect for Life</em></p>
<p>Frederick Douglass held life as being precious. He wrote:</p>
<blockquote><p>&#8220;When I was treated exceedingly ill; when my back was being scourged daily; when I was whipped within an inch of my life &#8212; life was all I cared for. &#8216;Spare my life.&#8217; was my continual prayer.&#8217;&#8221; <em>&#8211; Frederick Douglas, &#8220;Narrative of the Life of Frederick Douglass: An American Slave &amp; Other Writings, p. 125</em></p></blockquote>
<p>While an Illinois Senator, Barack Obama helped kill a law that would have required medical treatment to any child born alive, even if the procedure being performed was an abortion. Life was important to Douglass, life is a choice to Obama and not the choice of the individual who will live or die.</p>
<p><em>Limited Government</em></p>
<p>Frederick Douglass was also a strong believer in limited government. After all, wasn&#8217;t it government that enforced his enslavement. He had this to say about the relationship between government and the freed slave:</p>
<blockquote><p>&#8220;Let him alone and mind your own business. If you see him plowing in the open field. leveling the forest, at work with a spade, a rake, a hoe, a pick-axe, or a bill &#8212; let him alone; he has <strong>a right to work</strong>. If you seem him on his way to school, with spelling book, geography and arithmetic in his hands &#8212; let him alone. Don&#8217;t shut the door in his face, nor bolt your gates against him; he has a right to learn &#8212; let him alone. Don&#8217;t pass laws to degrade him.&#8221; {emphasis added} &#8212; <em>Frederick Douglass: Selections from his Writings</em></p></blockquote>
<p>But where does our government stand with regard to a Right to Work? Obama appoints far left progressives to the National Labor Relations Board and they try to block Boeing from opening a factory in South Carolina. Laws such as Davis-Bacon were passed as a result of a contractor bringing black laborers to Long Island to build a VA hospital in the 1930s. Although changes have been made to reduce the impact on minorities, the law has continued to make federal constructions projects more expensive than they otherwise would be. With regard to education, again, the government gets in the way. While Obama sends his daughters to a prestigious private school in Washington, D.C. he fought against a voucher program that could rescue other black children from failing schools in the District. The Tea Party fully supports such vouchers. Tell us again about who is racist, Mr. Freeman.</p>
<p>Douglass also wrote about government power.</p>
<blockquote><p>&#8220;I was now getting, as I have said, one dollar and fifty cents per day. I contracted for it; I earned it; it was paid to me; it was rightfully my own; yet, upon returning each Saturday night, I was compelled to deliver every cent of that money to Master Hugh. And why? Not because he earned it, &#8211;not because he had any hand in earning it, &#8212; not because I owed it to him, &#8212; not because he possessed the slightest shadow of a right to it; but solely because he had the power to compel me to give it up.&#8221; <em><em>&#8211; Frederick Douglas, &#8220;Narrative of the Life of Frederick Douglass: An American Slave &amp; Other Writings, p. 85</em></em></p></blockquote>
<p>How much does this sound like the government and President Obama&#8217;s insistence that he is entitled to take more. In Obama&#8217;s view and in his language he treats all earnings as belonging to the government except what the government allows you to keep. That&#8217;s why he says tax cuts &#8220;have to be paid for.&#8221; Never mind that the government is spending our<em><em></em></em> money for $16 muffins; $500 million for failed solar companies; $60-$100 billion a year stolen from Medicare and Medicaid; $1 trillion for failed stimulus programs, but his solution to the budget crisis is not to spend less, but to take more.</p>
<p><em>Personal Responsibility</em></p>
<blockquote><p>&#8220;&#8230;.And if the Negro cannot stand on his own legs, let him fall also. All I ask is to give him a chance to stand on his own legs! Let him alone!&#8230;your interference is doing him positive injury&#8221; &#8211;<em>Frederick Douglass, What the Black Man Wants (1865)</em></p></blockquote>
<p>Douglass did not call for the Great Society programs that have destroyed the black nuclear family. He did not call for spreading the wealth around, because it is good for everyone. Barack Obama wants to grow government bigger and bigger, to do more and more, whether we want it or not. And if we don&#8217;t want it, we are racists; if we object to it, we are greedy; if we look at the economic wreckage that surround us and we say enough, leave us alone and we&#8217;ll right this ship, we are called Nazis. <em></em>Here is what Frederick Douglass accomplished without a government program:</p>
<ul>
<li>Taught himself to read and write &#8212; self-taught homeschooling program</li>
<li>Taught himself to play the violin</li>
<li>Escaped from slavery at age twenty</li>
<li>Delayed his escape from slavery for one year in order to learn how to read and write as well as read</li>
<li>He wrote his first book at age twenty-seven</li>
<li>Became the face of the Abolitionist Movement and served as the catalyst within the movement that gave birth to the Republican Party</li>
<li>In 1847, started a newspaper, <em>The North Star</em></li>
<li>Assisted Harriet Tubman in the Underground Railroad Movement through the use of his home in Rochester, NY</li>
<li>Became an ordained minister in the AME Zion Church</li>
<li>Served as an adviser to five U.S. Presidents (Abraham Lincoln, Ulysses S. Grant, Rutherford B. Hayes, James A. Garfield, and Benjamin Harrison)</li>
<li>in 1863, served as a recruiter for the Massachusetts 54th Infantry Regiment</li>
<li>in 1870, became the owner and editor of <em>The New National Era,  </em>a weekly newspaper in Washington, D.C.</li>
<li>Without his knowledge, in 1872 Douglass became the first black American to be nominated as a Vice-Presidential candidate &#8212; Victoria Woodhull&#8217;s running mate on the Equal Rights Party ticket</li>
<li>Douglass earned $50-$105 per speech during his public speaking career.</li>
</ul>
<p>All accomplished without a government program.</p>
<blockquote><p>&#8220;I am a Republican, a black dyed in the wool Republican, and I never intend to belong to any other party than the party of freedom and progress. &#8212; <em>Frederick Douglass (1818-1895)</em></p></blockquote>
<p>So, Mr. Freeman, are you prepared to call Frederick Douglass a racist, because his views are far closer to those of the Tea Party, than to Barack Obama? We&#8217;ll wait for your next interview to find out.</p>
<p>&nbsp;</p>
<p>That&#8217;s my opinion; I&#8217;d like to know yours. Please comment below.</p>
<p>Note: a shout out to K. Carl Smith and his book <em>Frederick Douglass Republicans: The Movement to Re-Ignite Americas&#8217;s Passion for Liberty</em> (Author House: Birmingham, AL) 2011</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
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		<title>The Anti-Business Obama</title>
		<link>http://libertyslifeline.com/2010/06/18/the-anti-business-obama/</link>
		<comments>http://libertyslifeline.com/2010/06/18/the-anti-business-obama/#comments</comments>
		<pubDate>Fri, 18 Jun 2010 15:20:54 +0000</pubDate>
		<dc:creator>Bill O'Connell</dc:creator>
				<category><![CDATA[2010 Election]]></category>
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		<description><![CDATA[President Obama has demonstrated, as much as he would like to deny it, a strong anti-business sentiment.  He has acted in ways that remind one of a Castro or Chavez in that he is doing it in the name of the people against the greedy profiteers. General Motors and Chrysler were bled dry by union [...]]]></description>
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<p>President Obama has demonstrated, as much as he would like to deny it, a strong anti-business sentiment.  He has acted in ways that remind one of a Castro or Chavez in that he is doing it in the name of the people against the greedy profiteers.</p>
<p>General Motors and Chrysler were bled dry by union contracts.  Management is culpable for agreeing to those contracts so they don’t get a pass in my view.  But government also piled on with CAFÉ mileage requirements that forced the auto companies to build cars at a loss (because of the union contracts) to meet this standard.  In the midst of the financial crisis the auto companies were running out of cash.  The Obama administration, rather than let them go into bankruptcy, muscles in and turns over major ownership stakes in GM and Chrysler to the unions who are loyal supporters of the Democrat Party, rather than pay bondholders who were entitled to be paid first.</p>
<p>The housing bubble was driven by government policies going back years.  The stated goals of the Clinton administration was to increase home ownership to as many people as possible.  When the bubble burst, the Obama administration forced TARP money on healthy banks who neither needed it nor wanted it.  The reason was to avoid showing who the real basket case banks were.  But these banks were forced by their government to take the money and then the Obama administration created a pay czar to make sure any company that took TARP money, voluntarily or not, could not pay their executives more than Team Obama said they could.</p>
<p>Lax regulation on the Deepwater Horizon platform in the Gulf of Mexico permitted BP to take short cuts that led to disaster.  President Obama is put in an embarrassing position, so he cranks up the Public Relations machine to throw maximum ire upon BP.  He then tries to be a hero by shaking down BP for $20 billion.  BP has never said they would not pay.  BP waived the limit on damages that was set by, you guessed it, the government and has steadfastly said they would make things right.  But President Obama wanted to look like he was actually doing something and by taking $20 billion and putting it under his control it might look like he was.  I agree with many that President Obama did not cause the leak in the Gulf any more than Bush created Hurricane Katrina, but if, as Obama likes to say, the buck stops here, then he is responsible for the lax enforcement by his administration that could have prevented it.</p>
<p>To create jobs this administration created a $787 billion bailout package that did next to nothing to create real jobs.  It was pork to be paid to union members such as teachers, contractors, and not to grow the economy and create sustainable jobs.</p>
<p>If a business that is solidly behind the Obama agenda, like General Electric who owns the NBC and MSNBC cheerleaders, and wants to be a key player in the cap and trade exchanges, this President will treat them kindly.  But if you are an independent business trying to grow, you will be taxed to your eye sockets.</p>
<p>We pride ourselves on being a nation of laws not a nation of men, but since this President has taken office he has a view that he is above the law and can do whatever he feels he needs to do.  It was somewhat surreal to have Congressman Joe Barton, apologize to BP for the shakedown.  No one owes BP an apology but I understand Congressman Barton’s distaste for the administrations boorish behavior.  No one has the right to demand another’s property without due process of law, and that’s what happened.  Perhaps Tony Heywood should be fired for going along with it.</p>
<p>Let’s keep this in mind.  We need BP to continue to be a viable profitable company, so that every last claim can be paid.  If this administration succeeds in driving BP into the ground, guess who will be next in line to pick up the tab?  That’s right, gentle readers, you and me;  the American taxpayers.</p>
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		<title>The Czar Defense</title>
		<link>http://libertyslifeline.com/2009/09/08/the-czar-defense/</link>
		<comments>http://libertyslifeline.com/2009/09/08/the-czar-defense/#comments</comments>
		<pubDate>Tue, 08 Sep 2009 16:03:11 +0000</pubDate>
		<dc:creator>Bill O'Connell</dc:creator>
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		<description><![CDATA[As the number of czars continues to grow Americans are becoming more concerned about losing control of their government.  What can be done about it?  Try this.  If a czar comes calling to check on your salary, tell him to go stuff it. What is a czar? Czars are special advisers to the President.  As [...]]]></description>
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<p style="text-align: left;"><a title="Poster, 1895" href="http://flickr.com/photos/32912172@N00/3420258489"><img class="aligncenter" style="margin: 10px;" src="http://farm4.static.flickr.com/3408/3420258489_a6ef546132.jpg" alt="" width="378" height="500" /></a>As the number of czars continues to grow Americans are becoming more concerned about losing control of their government.  What can be done about it?  Try this.  If a czar comes calling to check on your salary, tell him to go stuff it.</p>
<p><strong>What is a czar?</strong></p>
<p>Czars are special advisers to the President.  As such they do not require Senate confirmation.  The President can have his Uncle Charlie as an adviser, for all that matters.  He can get advice from anyone.  However, he cannot legally give his authority to a czar.  So let&#8217;s do this about the czars.  Ignore them.  If President Obama wants his czars whispering in his ear all day long, so be it.  If he wants to give them any authority, then he should appoint them to a political position in his administration that is subject to the advice and consent of the Senate.  In that process we will learn a lot more about who these characters are, and we can voice our opinions of them.  Otherwise, President Obama is going to have to do the heavy lifting and take responsibility for everything he brought his czars on board to do.</p>
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		<title>435 Blind Mice, See How They Run</title>
		<link>http://libertyslifeline.com/2009/06/29/435-blind-mice-see-how-they-run/</link>
		<comments>http://libertyslifeline.com/2009/06/29/435-blind-mice-see-how-they-run/#comments</comments>
		<pubDate>Mon, 29 Jun 2009 12:39:56 +0000</pubDate>
		<dc:creator>Bill O'Connell</dc:creator>
				<category><![CDATA[Economy]]></category>
		<category><![CDATA[Energy]]></category>
		<category><![CDATA[Politics]]></category>
		<category><![CDATA[Browner]]></category>
		<category><![CDATA[Congress]]></category>
		<category><![CDATA[czar]]></category>
		<category><![CDATA[Declaration of Independence]]></category>
		<category><![CDATA[Eisenhower Administration]]></category>
		<category><![CDATA[energy czar]]></category>
		<category><![CDATA[Henry waxman]]></category>
		<category><![CDATA[House of Representatives]]></category>
		<category><![CDATA[Monster]]></category>
		<category><![CDATA[Tea Party]]></category>
		<category><![CDATA[telecommunications]]></category>
		<category><![CDATA[USD]]></category>
		<category><![CDATA[Washington]]></category>

		<guid isPermaLink="false">http://libertyslifeline.com/?p=694</guid>
		<description><![CDATA[Another massive piece of legislation passes the House of Representatives dubbed Cap and Trade, with 300 new pages added at 3AM on the day of the vote.  Now, I like to read and if you give me a real page turner I hate to put it down, but I am hard pressed to remember ever [...]]]></description>
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<p><a title="319.365 - Some tea party math" href="http://flickr.com/photos/55714700@N00/3445883880"><img class="alignleft" style="margin: 10px;" src="http://farm4.static.flickr.com/3550/3445883880_86e8af5df9_m.jpg" alt="" width="240" height="240" /></a>Another massive piece of legislation passes the House of Representatives dubbed Cap and Trade, with 300 new pages added at 3AM on the day of the vote.  Now, I like to read and if you give me a real page turner I hate to put it down, but I am hard pressed to remember ever knocking off a 300 page book in one day.  When I was in telecommunications and becoming a subject matter expert on access tariffs, I had to get up and walk around or get a cup of coffee after every ten pages just to clear my head.  So a piece of legalese that is over 1,000 pages would probably take me a month to slog through.</p>
<p>But this is not about me.  Go ask how many Representatives (Salary $174,000 per year) actually read what they were voting on and see what kind of answers you get back.  If you keep asking, &#8220;No, but did you read it?&#8221; it will be great fun to see the squirming and hear the double talk.  This morning on Fox News Carol Browner, Obama&#8217;s energy czar, was asked if she read the bill.  She responded that she was very familiar with it.  She was asked again if she read it, and she said she read vast portions of it.  The host responded, &#8220;So you didn&#8217;t read it?&#8221;  To that remark Ms. Browner took umbrage, &#8220;That&#8217;s not fair!&#8230;&#8221; she began.</p>
<p><strong>Don&#8217;t They Get It</strong></p>
<p>With a major piece of legislation that can destroy our liberties and burden us and our children with the cost  for years, these overpaid, narcissistic, arrogant employees of ours, don&#8217;t even read what they are voting on.  Let&#8217;s take Ms. Browner for example, accepting that she is not in Congress and therefore didn&#8217;t vote on the bill.  Even if she read 99.9% of the bill, what if the 0.1% of the bill that she didn&#8217;t read said, &#8220;ignore all of the preceding material, and raise Congress&#8217; salaries 10%.&#8221;  If anyone has ever been told to read the fine print on a contract or got snagged because you didn&#8217;t, you know that if you didn&#8217;t read all of it, you don&#8217;t know what you just voted on.  Even Henry Waxman, one of the sponsors of the bill admits, he didn&#8217;t read it.</p>
<p><strong>Brevity is the Key</strong></p>
<p>When I was studying computer science I learned that perfection in a program was not reached when there was nothing more to put it, but when there was nothing more to take out.  The beauty of the Declaration of Independence and the Constitution is that they can be read in their entirety on your lunch break.  I believe the legislation that created the Interstate Highway System in the Eisenhower Administration ran 29 pages.  This created a massive public works project like we have never seen before, in just 29 pages.  Why are these people in Washington if not to represent us?  Drafting a bill that runs over 1,000 pages is to pack it with favors for special interests that will then help those who approved it get re-elected.  It is all about power.  Getting it, keeping it, expanding it, all at our expense.</p>
<p>Tea Party anyone?</p>
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		<title>Kill the Detroit Bailout</title>
		<link>http://libertyslifeline.com/2008/11/16/kill-the-detroit-bailout/</link>
		<comments>http://libertyslifeline.com/2008/11/16/kill-the-detroit-bailout/#comments</comments>
		<pubDate>Sun, 16 Nov 2008 19:44:40 +0000</pubDate>
		<dc:creator>Bill O'Connell</dc:creator>
				<category><![CDATA[Fiscal Crisis]]></category>
		<category><![CDATA[Politics]]></category>
		<category><![CDATA[a czar]]></category>
		<category><![CDATA[Alabama]]></category>
		<category><![CDATA[Alternative propulsion]]></category>
		<category><![CDATA[Analytic Hierarchy Process]]></category>
		<category><![CDATA[Automotive industry]]></category>
		<category><![CDATA[Bailout]]></category>
		<category><![CDATA[Business/Finance]]></category>
		<category><![CDATA[car]]></category>
		<category><![CDATA[car ads]]></category>
		<category><![CDATA[Car manufacturers]]></category>
		<category><![CDATA[Chrysler]]></category>
		<category><![CDATA[Congress]]></category>
		<category><![CDATA[Corporate Average Fuel Economy]]></category>
		<category><![CDATA[czar]]></category>
		<category><![CDATA[detroit]]></category>
		<category><![CDATA[Electric car]]></category>
		<category><![CDATA[Electric vehicles]]></category>
		<category><![CDATA[Employment Change]]></category>
		<category><![CDATA[Energy in the United States]]></category>
		<category><![CDATA[Ford]]></category>
		<category><![CDATA[Ford Motor Company]]></category>
		<category><![CDATA[foreign oil]]></category>
		<category><![CDATA[Fuel economy in automobiles]]></category>
		<category><![CDATA[gas climbs]]></category>
		<category><![CDATA[GM]]></category>
		<category><![CDATA[Green vehicles]]></category>
		<category><![CDATA[mpg car]]></category>
		<category><![CDATA[North Carolina]]></category>
		<category><![CDATA[particular car]]></category>
		<category><![CDATA[Support]]></category>
		<category><![CDATA[Sustainability]]></category>
		<category><![CDATA[Technology]]></category>
		<category><![CDATA[United States]]></category>
		<category><![CDATA[unprofitable product]]></category>
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		<guid isPermaLink="false">http://libertyslifeline.com/?p=131</guid>
		<description><![CDATA[I was having lunch with a colleague the other day and the conversation turned to the economy. He spoke of some recent analysis of the number of jobs that would be lost if the Big Three failed.  He recounted not just the employees of the auto companies themselves, but the employees of their suppliers, advertising [...]]]></description>
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<p>I was having lunch with a colleague the other day and the conversation turned to the economy. He spoke of some recent analysis of the number of jobs that would be lost if the Big Three failed.  He recounted not just the employees of the auto companies themselves, but the employees of their suppliers, advertising firms that produce car ads, and on and on.  His final tally was well over 1 million jobs lost.  He concluded by saying it would make the current financial crisis a walk in the park.</p>
<h3>Getting enough exercise?</h3>
<p>Does that mean that we are all going to start walking?  Not that that would be a bad idea, we could all stand to lose some pounds, but for someone who has a 23 mile one-way commute with no option for mass transit, it&#8217;s just not going to happen.  So what do we do?  Well, one of several scenarios is going to happen.</p>
<h3>Scenario 1:  The Big Three Close Their Doors</h3>
<p>If this scenario came about, what would we do?  We would go buy Toyotas, Nissans, Hondas, Volkswagens, etc.  Those companies would have to scale up to fill the void caused by the Big Three closing their doors.  That demand would need people.  So a significant number, but by no means all, of the laid off workers from Detroit would move to North Carolina, Alabama, and other points south, and join these auto companies at their U.S. plants.</p>
<p>Likewise the suppliers would form new alliances to supply these car companies, as would all the other ancillary companies that currently support Detroit.  Would jobs be lost?  Yes.  Would it be anywhere near the number of jobs my friend projected?  No.</p>
<h3>Scenario 2: The Big Three Reinvent Themselves</h3>
<p>The liberty of the car companies to reinvent themselves is constrained by government regulations.  Surprise!  If the Big Three have any hope of reinventing themselves, they have to have the freedom to do so.  Start by eliminating the CAFE standards.  CAFE, which stands for Corporate Average Fuel Economy, is the mileage standards dictated by the government that the auto companies must comply with or face heavy fines, draining more money from the Big Three&#8217;s coffers.  So for every car that the Big Three build that may get 20 mpg, they may have to build and sell perhaps 3 that get 30 mpg, in order to meet the standard.  But what if they can make money on the 20 mpg car, but they lose money on every 30 mpg model?  What if the reason they can&#8217;t make money is because of their labor costs per vehicle, their pension costs per vehicle, their health care costs per vehicle, when added up are too high compared to their foreign competitors.  They are basically forced by the government to make an unprofitable product.</p>
<p>Why not abandon the CAFE standards?  Let Detroit build the cars and trucks that they can make at a profit.  Let the foreign manufactures make cars that they can make at a profit, including high mileage cars.  Let the American people have the freedom to choose which they want.  As the price of gasoline climbs as it did, and will again, people will want to buy high mileage cars, hybrids, electric cars, but they will also want to buy SUVs, luxury cars and light trucks.  Why does a particular manufacturer have to produce all kinds?  When has government ever made the right call on what products to produce? (Hint:  think of all the five-year plans and Great Leap Forwards from the Communist world).</p>
<h3>Scenario 3: The Government Bails Out the Big Three</h3>
<p>The government prints up a bundle of cash, $25 billion or more, gives it to the auto companies and hands the IOU to you and me.  The new Democratic Congress and Administration will toe the line for their backers in the environmental movement and demand higher CAFE standards for the auto companies in the interest of addressing: our dependence on foreign oil; green house gases; and helping consumers.  This will put increased pressure on the Big Three to make more unprofitable products and we will find ourselves back in the same place a few years hence.  More liberties will be vaporized as the government appoints a czar to oversee the auto companies to be sure they are building the right products, that management is not getting paid too much money, and well let&#8217;s face it, they would basically be nationalizing the auto companies.  Management talent would dry up, and socialism would make greater inroads into the U.S. economy.</p>
<h3>The Best Scenario</h3>
<p>The Big Three file for bankruptcy, if that is what they need to do.  The stockholders would probably be wiped out, the management team would be replaced, and this will let them re-negotiate their labor agreements.  Congress and the new Administration realize that people will want to purchase cars with higher mileage as the price of gas climbs regardless of any government requirement.  There is no justifiable reason that any particular auto company has to build a particular car because the government says so.  Achieving this state of enlightenment, Congress repeals the CAFE standards.  With the liberty to manage the company to make a profit rather than meet the constraints of a bevy of interest groups, a more energized management team takes the reins, and returns the Big Three to competitiveness.</p>
<h3>Drawing a line in the Sand</h3>
<p>If we don&#8217;t take a stand here and now, every company that wants a cash cushion will be working the halls of Congress to get their hands on your money.  There is not enough to go around.  In addition, many of the problems we are facing were created by government initiatives.  The mortgage mess was not the result of not enough regulation but by government programs that compelled lenders to give loans to people who could not afford them.  Detroit&#8217;s problems are a result of CAFE standards and onerous union contracts.  Since government created many of these problems why do we think that government knows how to fix them?  What we need to do is tell them to back off and let the free market work.</p>
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