Auto Efficiency

Anyone who’s been to a Department of Motor Vehicles office knows that bureaucracy has the power to suck the momentum, life force, and money out of any individual, family, or business.

Yet, we may be entering a time when government influence can potentially speed up innovation and progress.

Our country’s car companies are asking to be bailed out. Some argue that we should simply allocate money and give it to these critically wounded companies.

But some economists argue that bankruptcy will be good for the industry, forcing the companies to reorganize and restructure their debt, and reworking their antequated product line and dealership systems.

Sounds like progress—unless you’re a union member, one of the remaining autoworkers whose job wasn’t exported to Mexico or elsewhere; or a former employee with benefits still in effect.

But what if we got some sort of equity in the company in exchange for the bailout? No, we wouldn’t have to nationalize the industry—but we would be treated as an important member of the board.

If Warren Buffett owned 20% of your company’s stock, that wouldn’t make him a majority stockholder, but that’s a lot of voting shares. If you were planning a major move, you’d be checking in with Warren before making them.

If, for the time being, the federal government had a boardroom seat at the “Big 3” car makers, sure, there’d be cries of “socialism.” But these companies would be quicker to respond to the human and technological demands of our time.

For over fifty years, Ford, GM and Chrysler have repeated the same cyclical dance with the government:

1. The government sets a new standard, like higher gas mileage, seat belts or air bags, then sets a date, five ten or fifteen years in the future, when the new models must comply.

2. The car companies announce that the new regulation will make it impossible for them to stay in business.

3. There are hearings, court battles, and intense lobbying efforts, sometimes involving suddenly massive campaign contributions. Perhaps timelines are adjusted, or slightly easier-to-meet standards are set.

4. Eventually, the car companies end up complying.

5. Back to step 1, with another innovation that the industry will fight tooth and nail.

Every step of the way, America’s automakers have fought every possible innovation, until it was forced on them.

But, suppose a prominent member of the board of directors was pushing for higher fuel economy, and more alternative technology? Wouldn’t that make the industry more responsive to innovation? Wouldn’t the process be less cumbersome?

This way, it becomes a partnership. That way, GM, Ford and Chrysler have a strong incentive to move forward, and Americans have a strong incentive to demand better cars, and then to buy them.

Fear Itself

"I don't have to tell you things are bad. Everybody knows things are bad. It's a depression. Everybody's out of work or scared of losing their job. The dollar buys a nickel's worth, banks are going bust, shopkeepers keep a gun under the counter.” –Newscaster Howard Beale, played by Peter Finch, speaking Paddy Chayefsky’s words in “Network.” (1976)

It is time for us, as Americans, to get our act together. I am tired of the moaning and hand wringing about the task awaiting President-elect Obama. Since I am doing some of that wailing myself, I’m going to dial that back starting now.

Government has never been the answer to our problems, but there are things that government can do awfully well. Not at a profit, not cheaply, but well.

We’re coming out of a time of cynicism and indulgence, based on the assumption that nothing’s worth believing in, just get yours while you can, and if there’s a problem, just turn on the t.v., a bigger t.v., a flat screen, and soak your consciousness away.

It’s time for us to look in the mirror, and look at each other, and start to have faith in each other. If you’re an optimist, that will be easy. If you’re a pessimist, let me assure you—we have no other choice.

Barack Obama, his advisors, the Congress, people of every political stripe are going to hunker down now, and focus on making progress. As of January 20th, 2009, what ever happened before is over. Loosen our grip on those quarrels from before. And we have to look at each other with hope and open hearts.

If you worked long and hard on this campaign, and you wish this historic first African-American President didn’t have so many crises on his plate, foreign and domestic, let me give you a gentle reminder.

Take a look at our money; sneak a peak at Mount Rushmore. Lincoln and Washington; Theodore and Franklin Roosevelt. You don’t become a great American President by taking over when things are quiet and leaving things as they are. .250 hitters don't make the Hall of Fame.

Barack Obama is already in the history books, no matter what he does. The only question is, will he be remembered only as our first African-American President, or as a great President?

He’s going to have some difficult decisions to make. And we’re going to have to work together, hope together, fail together and ultimately succeed together, to make the Change and the Hope he campaigned for, take shape, take root, and rejeuvenate this country we love.

All right, people! Forward we march, voluntarily and energetically together. Eyes front and upward, hearts open, we roll up our sleeves and get ready, comforted by the knowledge that we chose well.