How to Save America Chavez Style...

I'm not a Michael Moore fan.  Never have been:  I find his films too bias toward crowd pleasing; and many of his facts twisted and unfounded just to swerve opinion and create shock-value.  

But, in this Larry King episode, Michael actually says a lot of things I  have to agree with about the Detroit 3 bailout.  

In fact, I  have many a Twitter about this issue where, to rescue the automakers and America's economy,  Obama should take a page out of Hugo Chavez's free car for gas-guzzlers policy ; implementing programs similar to Roosevelt's "New Deal" or other Hooveran type 'statist' programs to take control of the auto industry and more importantly save the jobs of the working masses.   Moore's ideas of making mass transport and more fuel efficient cars is very appealing too.

In any basic economic model, one of the most fundamental concepts is the relationship of supply and demand.  Because of the global crisis, demand for American made cars has dropped off the face of the Earth.  Congress, the Detroit 3, the UAW all are trying to re-structure the 'supply' side of this equation; getting costs down, closing plants,etc.

I agree a re-structure of the supply side of the American automakers is necessary due to a lot of the same reasons Moore has indicated.  But, Roosevelt's public works programs and Chavez's socialism influences the demand side of this simple economic example.  The State shall artificially create the demand for Detroit's cars, make them efficient, and buy them like any other Government contract for planes, tanks, etc.  Then swap them for the gas-guzzlers, which anyone who has travelled through California alone knows, are plentiful.

The residual effects of creating a demand for these cars will be multifold: not only will this save the environment, the compounding effect of more jobs will be created via more demand for steel, tires, technology, etc. in the building of these cars.  In addition, more consumer spending as people have more jobs, and spend on other facets of the economy.

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