CATO Said No To Auto Bailout!
by Michael Shanklin
Daniel J. Ikenson from the CATO Institute discusses the proposed bailout of the auto industry ranging from the horrible sales numbers to the huge losses. The Big 3 have shown little progress in cutting costs and becoming more efficient. Over the years the Unions have drastically distorted market equilibrium while protectionism has steadily increased costs of materials needed for production in our country while decreasing demand as an export by driving up prices for foreign consumers through tariffs. The coddled auto industry needs the free market to place market pressures on it in order for it to open up competition and allow capitalism to take its course. CATO understands that the cost structure as is, is not sustainable and that government protectionism for the elites in the auto industry must be deregulated in order to allow free barrier entry to market. For more information on liberty please go to Michael Shanklin’s youtube channel: http://www.youtube.com/user/shanklinmike
