The Stupidity of the Free Market

On CNBC this morning there was some discussion of the potential for the US automakers to provide another kick to the ribs to the US economy as they reported plummeting sales for Trucks and SUV’s. And I see where McCain/Bush has proposed an “award” of $300 million of our taxpayer monies to whoever can build a better car battery.

When California passed that mandate for zero emission vehicles, Detroit responded to the challenge. They responded by fighting against it tooth and nail, spending billions on lobbying and advertising and lawyers and the like; billions in utterly non-productive spending of shareholder equity. Likewise with raising CAFÉ standards, no, must keep the short term profitability of the SUV market over sustainable profits at all costs.

Now, it’s funny, in a pathetic sort of way, but it isn’t as if our present pricing and demand pressure's were unimaginable at the time, after all, that’s why we passed the damn law in the first place. Yet these giant corporations could only see the mandate as a threat, not an opportunity to take advantage of the inevitable future.

So when dickwads like peter and mucky and whatever other vile gopper thugs tell us how great the free market is, remember this. Those billions they wasted fighting against the laws of nature (there’s only so much oil out there-and the demand for the energy it produces far exceeds the supply) could instead have been invested in new battery technology and hybrids and fuel cells and hydrogen infrastructure to meet the mandates of the law.

So instead of avoiding massive layoffs in Detroit, instead of having the new infrastructure for new fuels and battery powered cars in place, Detroit and the Oil industry are tearing this country, and the world, apart. Disruptions caused by the meteoric increase in gas prices, the dilatory effect on the corn and soybean markets vis a vis food production, the layoffs, and especially the crisis in the Middle East rooted in Oil, is pushing us to the brink of a real serious recession, maybe a depression, maybe stagflation, but nothing good. That is the thugs and trolls mighty free market at work.

Are you as impressed as I am?