In consideration for a bailout, Congress and the incoming Obama administration insist that the auto industry present a plan for survival of their companies. That sounds reasonable — until you consider that the auto companies must already be operating on a plan, and that plan isn’t working. How can they be expected to come up with a new plan in just a few weeks?
Then, any plan will have to undergo the scrutiny of Congress. I, for one, have absolutely no confidence in the ability of Congress to evaluate a plan for the revitalization of the American automobile industry. Although congressional leaders, it seems to me, are quite eager to give it a try.
That leads to real danger that we face. If Congress and the Obama administration approve a bailout, they’re going to insist on close oversight of the auto companies. In effect, this industry will come under the control of the federal government. And how many people want to buy a car designed and built under those conditions?