Wednesday, December 17, 2008

Proof That Detroit Could Be Replaced Over Time.

I am fired up, you should be too. The reason?... Carbon Motors Corporation an Atlanta based company that may represent the perfect example of what the free market solution to the auto industry crisis could look like. You can learn more about them at I recently learned about this break through company in a Fox News article back on December 12, 2008. After doing a little follow up research it became apparent this is clearly worth writing about here.

This new auto industry participant specializes in the manufacture of new state of the art fuel efficient police motor vehicles. It is the company’s hope to have orders for up to 50,000 new vehicles in the coming years with the first models going into service in 2012. Based on reported responses from members of the law enforcement community these new specialty cars could have a very strong market.

The development of this new product is significant for our purposes at DMRightSide because this is proof positive we can soon see in action that shows the Big 3 can, and are going to be replaced. Keep in mind that it has been shown that law enforcement agencies purchase upwards of 70,000 vehicles or more per year. These often are either General Motors of Ford products. If the E7 can take even a small percentage of that figure in its first year of mass production a clear message will be sent that the times are a changing.

Furthermore as reported by Fox once this company hits the production stage not only will they need to choose a state to build the plant in (creating a new mini-economy in effect) but also creating up to 10,000 new jobs along the way. Many of these jobs may likely be ideal for the soon to be displaced UAW workers at the Big 3. If a few more of these new innovating companies take off we may be looking at a genuine redistribution of this area of the industry and after that who knows?

I would be the first to admit that this one lone company is not going to sink a company the size of General Motors or Ford, these companies will likely take care of themselves. At the same time many small entities like Carbon Motors taking the time to innovate and chip away at the “way it has always been” will translate in to an expedited fall of companies that frankly deserve some “street justice”.

In the process of doing so these new little entities are going create new jobs, wealth, and bring about the sort of innovations that make our nation as great as it is. Keep in mind this company in the future and others like it. They may be the saviors of our future.


U.S. Grant


Bull R. Moose said...

Wasn't the purpose of the Iowa Lottery to raise money for the State of Iowa? Doesn't Gov. Culver's plan to 'lease' the Iowa Lottery defeat that purpose?

U.S.Grant said...

Bull R. Moose,

Thank you for taking the time to comment on our blog we appreciate it!

Having read the article in the Register regarding this issue here is where I come down on this idea:

I understand that our State is in a serious financial situation. It troubles me (and many others) that our state has hit a monetary situation that in previous years was assumed to be more frequent other States. Iowa has had in my opinion a great reputation for a moderate approach to spending, but obviously this has not held up since we are in this position today. As a citizen I am embarrassed.

I agree with Tom Coates that the privatizing the lottery is a poor idea. I believe he is dead on correct when he said (and I paraphrase) that the state simply needs to make some aggressive and needed budget cuts.

We don't need to raise taxes to fix this we need to get honest about what we really spend our money on.

Furthermore your point regarding the sacrifice of the lottery for short term gains is just as poignant. The problem we face is a result of years of poor choices, that’s a long term problem. That means we need a long term solution. Sacrificing a consistent source of revenue for the state so Gov. Culver can look good in the short run is tantamount to a director violating his fiduciary duties to a shareholder for his own short swing profit.

Bottom line I am not a fan of this idea.

Bull R. Moose said...

Raising taxes is the worst possible course of action that could be taken at this time. What happened to fiscal responsibility and only spending what you have in the bank? I agree with you that our current 'spending gap' is a result of years of poor choices that stem back to the previous administration in Iowa.

I would advocate that this is the perfect opportunity for our state to overhaul its finances. Let's find a way to be better stewards of the taxpayers' dollar. Why not start with the biggest drain on our budget - appropriations to schools.

I support Iowa's teachers and the job they are trying to do. Their job is critical to our future as a state and country.

Our current school model/infrastructure is bloated and the dollars spent are not improving our schools. Look at the number of school districts that are struggling to survive in Iowa. What types of opportunities are these students receiving when their grades 9-12 enrollment is 60 students? Schools are struggling to provide the basic courses.

I am a strong supporter of small schools - - - where it makes sense. Couldn't our dollars be more effectively used in educating students by consolidating those smaller schools and providing opportunities to these students who otherwise may not have the chance to do so in a small school that is struggling to survive?

Bull R. Moose said...

It is very interesting that the media and others are calling Governor Culver's 1.5% ATB budget cut 'courageous' and a sign of strong leadership in tough economic times. While the budget cuts are necessary, where is the courage to say 'no' to spending when we are not staring down the barrel of a $600 million 'spending gap'? It would seem that real leadership and courage begins when making the right decision may not be the most popular decision at the time. We have overpromised and underdelivered and now are facing the consequences. It is recognized that the economy is in the midst of a serious downturn, but we must have the courage to plan ahead and that sometimes means saying 'no' when it would feel good to say 'yes'.

Conservatives have an opportunity to return the GOP to the party of fiscal responsibility and being good stewards of the taxpayers' dollar. This is not an R vs D issue, this is an Iowa issue and all elected officials should strive to be good stewards of our dollars.