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Patrick Buchanan
Pat Buchanan
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The Toyota Republicans

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"GOP to Detroit: Drop Dead!"

So may have read the headline Friday, had not President Bush stepped in to save GM, Ford and Chrysler, which Senate Republicans had just voted to send to the knacker's yard.

What are Republicans thinking of, pulling the plug, at Christmas, on GM, risking swift death for the greatest manufacturing company in American history, a strategic asset and pillar of the U.S. economy.

The $14 billion loan to the Big Three that Republican senators filibustered to death is just 2 percent of the $700 billion the Senate voted to bail out Wall Street. Having gone along with bailouts of Bear Stearns, AIG, Fannie, Freddie and CitiGroup, why refuse a reprieve to an industry upon which millions of the best blue-collar jobs in America depend?

In a good year, Americans buy 17 million cars. A more populous EU probably buys as many. Three billion people in India, Southeast Asia and China, four times as many people as there are in the EU and United States, are moving toward the middle class. They, too, will be wanting cars. And millions of them love American cars.

Is the Republican Party so fanatic in its ideology that, rather than sin against a commandment of Milton Friedman, it is willing to see America written forever out of this fantastic market, let millions of jobs vanish and write off the industrial Midwest?

So it would seem. "Companies fail every day, and others take their place," said Sen. Richard Shelby on "Face the Nation."

Presumably, the companies that will "take their place," when GM, Ford and Chrysler die, are German, Japanese or Korean, like the ones lured into Shelby's state of Alabama, with the bait of subsidies free-market Republicans are supposed to abhor.

In 1993, Alabama put together a $258 million package to bring a Mercedes plant in. In 1999, Honda was offered $158 million to build a plant there. In 2002, Alabama won a Hyundai plant by offering a $252 million subsidy.

"We have a number of profitable automakers in America, and they should not be disadvantaged for making wise business decisions while failure is rewarded," says Sen. Jim DeMint of South Carolina.

DeMint is referring to "profitable automakers" like BMW, which sited a plant in Spartanburg, after South Carolina offered the Germans a $150 million subsidy and $80 million to expand.

Be it BMW, Honda, Toyota, Nissan, Mazda, Mitsubishi or Hyundai, the South has become a sanctuary for foreign assembly plants, for which Southern states have been paying subsidies.

Fine.

But why this "Let-them-eat-cake!" coldness toward U.S. auto companies? General Motors employs more workers than all these foreign plants combined. And, unlike Mitsubishi, General Motors didn't bomb Pearl Harbor.

Do these Southern senators understand why the foreign automakers suddenly up and decided to build plants in the United States?

It was the economic nationalism of Ronald Reagan.

When an icon of American industry, Harley-Davidson, was being run out of business by cutthroat Japanese dumping of big bikes to kill the "Harley Hog," Reagan slapped 50 percent tariffs on their motorcycles and imposed quotas on imported Japanese cars. Message to Tokyo. If you folks want to keep selling cars here, start building them here.

Fear of Reaganism brought those foreign automakers, lickety-split, to America's shores, not any love of Southern cooking.

Do the Republicans not yet understand how they lost the New Majority coalition that gave them three landslides and five victories in six presidential races from 1968 to 1988? Do they not know why the Reagan Democrats in Pennsylvania, Ohio and Michigan are going home?

The Republican Party gave their jobs away!

How? By telling U.S. manufacturers they could shut plants here, get rid of their U.S. workers, build factories in Mexico, Asia or China, and ship their products back, free of charge.

Republican globalists gave U.S. manufacturers every incentive to go abroad and take their jobs with them, the jobs of Middle America.

And, for 30 years, that is what U.S. manufacturers have done, have been forced to do, as their competitors closed down and moved their plants abroad in search of low-wage Third World labor.

It's Herbert Hoover time in here, Vice President Cheney is said to have told the Senate Republicans — as they prepared to march out onto the floor and turn thumbs down on any reprieve for General Motors.

In today's world, America faces nationalistic trade rivals who manipulate currencies, employ nontariff barriers, subsidize their manufacturers, rebate value-added taxes on exports to us and impose value-added taxes on imports from us, all to capture our markets and kill our great companies. And we have a Republican Party blissfully ignorant that we live in a world of us or them. It doesn't even know who "us" is.

We need a new team on the field and a new coach who believes with Vince Lombardi that "winning isn't everything. It's the only thing."

Patrick Buchanan is the author of the new book "Churchill, Hitler and 'The Unnecessary War." To find out more about Patrick Buchanan, and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate web page at www.creators.com.

COPYRIGHT 2008 CREATORS SYNDICATE INC.


Comments

4 Comments | Post Comment
Dear Mr. Buchanan,
While I normally enjoy and appreciate your insightful commentary I noticed that in this particular piece you have made a rather glaring logical error. Early in your piece you relate the reasons why foreign car manufacturers have built plants in the U.S.; which reasons I assume to be correct based on my experience with your writing. Later in the piece you castigate republicans for not helping out GM etc. and you conflate that choice with their choices to 'let' companies move their manufacturing off-shore. Not bailing out GM may be a poor choice as may be the efforts of various Republicans at globalization BUT the two issues cannot be conflated since GM is still manufacturing here for the same reasons the foreign manufacturers built plants here. The difference is that the foreign manufacturers have profitable businesses based on their U.S. domestic manufacturing while GM loses something like $4000 per vehicle produced mostly due to legacy costs and poor management. I understand your point about the loss of Rust Belt jobs leading to political issues for the Republicans but I think that argument can be made better without mistakenly conflating two similar but necessarily different issues.

Best regards,

Daniel F.
Comment: #1
Posted by: Daniel
Tue Dec 16, 2008 2:19 PM
Mr. Buchanan, I agree completely with your article and thank you for saying that what our government and corporate decisions have done to our auto industry is deplorable. I understand your article is about Republicans, however, I feel so strongly about preserving our auto industry I must comment. Due to the political actions and the greed of so many with power and money in our country, they've misled the American people and the auto industry. (I acknowledge the industry itself has made some poor decisions, but you don't throw the baby out w/the bath water.) But due to our politicians bad decisions, bad trade agreements. and corrupt people in power , they've shot the industry in both knees and it seems they are now going in for the kill. Our country doesn't deserve this, our auto manufacturer's don't deserve this, and the people, the families, who have worked for generations within this American industry don't deserve this. The American automobile industry supports so many families and is connected to so many other auto related jobs that if we allow them to die, there will be a toxic domino effect throughout our country that is horrifying to imagine. And I don't know about anyone else, but I think anyone who votes against a bailout for the auto industry is a self-serving traitor. Especially when you consider these same "politicians" approved >$700 billion for the financial industry with no strings, no executives fired or giving up their $10,000 hrly salary, and no one telling them what to do or how to spend the bailout money. I'm sure it wasn't meant to pay for executives R&R or to be held and used to buy/gobble up smaller banks. Something is rotten, not in Denmark, but right here in the good 'ol USA.
Comment: #2
Posted by: liz
Tue Dec 16, 2008 2:21 PM
Sir;... The only reason I have for loving this moment is the many republicans in the Auto Industry, or living second hand off the auto industry who never seem to know which side of their bread is buttered, and who stood against their union to elect people like Nixon and Reagan and Bush... Let the republicans cut their throats... Let the republicans stab them in the back... Is it no less than their own employers have done for years in replacing them with robbots by the mile, and by shipping their jobs abroad to be done in places without legacy costs??? Give those people help, and you would find it exported as capital... What America has done across the board is to ruin itself as a market... A race to the bottom is a good way to put it. But Robbots don't buy cars... They are a fixed cost that can be weighed against profits, but they do not take wages and they don't buy cars... Drive down the cost of labor, drive down the price of wages, hold down the minimum wage; and deny the whole country health insurance; and what do you get???. Profits are maximized and the working class is squeezed until the few people with good jobs can no longer support the service economy we are left with.... High profits and low wages are the reason for this depression... The higher the profits the deeper the depression... So, hooray for the republicans.... Only one question is left to answer...How many republicans will the GOP destroy to kill the union???The union is the only thing standing between this land and revolution... Let it die so we can live... Thanks...Sweeney
Comment: #3
Posted by: James A, Sweeney
Wed Dec 17, 2008 12:31 PM
Pat, we are pretty much on the same page regarding "Toyota Republicans". What type of mentality promotes the building of FOREIGN auto manufacturers yet looks to destroy the U.S. industrial base ? These politicians are EXTREMELY unaware of the fact that they are seeking to destroy the working middle class as well. Reagan placed a 50% tariff on foreign goods in HIS administration. We need to bump it up to 100%.
What really puzzles me is how the American consumer figures he/she is doing themselves a favor buying cars from automakers of foreign origin. Even if Honda and Toyota make cars in Ohio the PROFITS still go to Japan and Korea. Although most adults claim to have been college educated they are lacking in knowledge of basic economics and common sense. The result of the last election demonstrates that clearly.
Between the "new Dems" and "the 21st century GOP" mainstream Americans are in big trouble.
Comment: #4
Posted by: Ed Lapinskas
Thu Dec 18, 2008 11:02 AM
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