1) Nationalize Chrysler and GM. They have received huge sums of government money and are about to fail. The reason we have attempted to save these two companies is not for the managers or the shareholders, but for the American economy as a whole, and the job loss that would result. To that end, it makes more sense to nationalize those industries and ensure that they can provide jobs, rather than continue to reward the management of these companies, who have utterly failed to present a coherent vision of the future. Their management is extremely poor, yet they are vital to the economy. It would be far better to nationalize these industries and turn them to the good of the American People than to let them crash and burn, taking out the American economy. Further, in the case of a clearly failing company, nationalization isn't even economically harmful to the shareholders and owners--regardless of nationalization, they are set to lose all value.
2) The nationalization should proceed through Congressional creation of a Parastatal Corporate Structure ("PCS"). The PCS would consist of a now-existing or newly created Executive Agency("EA") which will act as the "Board" of the Nationalized Companies ("NCs"). In its capacity as the Board, the EA will hire individuals for high management positions, such as CEO, CFO, COO, Legal Counsel, and other upper-level management. The Management will in turn implement the policies directed by Congress and the EA in order to achieve the goals of the Nationalization: economic stimulus, job creation, environmental protection, and debt and trade deficit reduction.
3) Once nationalized, Chrysler and GM should be directoed to produce electric vehicles, hybrid vehicles, and other high fuel economy vehicles("HFEVs") exclusively. They should use the technology available, right now. The increase in sales volume of the products required for assembly of HFEVs will lead to better economies of scale, and lower prices for both production and final sale price.
4) The majority of the profits should go towards further research and development into green technology. This can occur both within Chrysler and GM and the United States as a whole, through grants to research projects and tech startups with promising proprietary technology they want to attempt to commercialize. Until such time as there are profits realized, the U.S. government should invest sufficient amounts of capital to the country-wide research project in order to spur the technical and manufacturing innovation required to get us out of the recession.
5) Any later profits, in an amount to be determined by Congress or the EA should be applied to service and reduce the enormous U.S. debt.
6) Ford, and other profitable carmakers, should not be nationalized. Only companies which are vitally important to the U.S. economy and are funadamentally flawed and unprofitable require the drastic step of nationalization.
7) Private market and capitalist fundamentals should still apply--and, in fact, the government should do its best to encourage competition with the state-owned car companies. The should achieve this by freely licensing Intellectual Property Rights ("IPRs") on the fruits of the research to any U.S. entrepreneur who will create jobs in the United States. The IPRs would spur competition, and allow the companies that are best able to organize to make parts or entire vehicles would always be capable of using the best research in the world. In doing this, we would create a vibrant and cutting edge industry able to comepte with carmakers around the globe, and being to increase our exports and reduce our trade deficit. The release of new, high quality IPRs into the American economy will lead to a real addition of value--that much freely licensed and readily available technology will do a great deal to spur innovation and provide opportunities for entrepreneurship.
8) Free licensing of the research is the key, allowing the American auto industry as a whole to move in a more eco-friendly and energy independent direction favored by most Americans. Essentially, Chrysler and GMs earning potential should be harnessed to provide the surviving automotive companies--i.e., Ford and the parts manufacturers--with the cutting edge technology they need to succeeed in a global market.
9) Once the NCs are profitable, they should be returned to the private sector. They should be restored to the stockholders at this time--the nationalization of the companies is an abrogation of their rights--it is, however a constitutionally legal one coming at a time of great crisis. This does not mean, however that the stockhodlers should receive any loss greater, or more permanent, than is required in order to serve national interests. THe goal of stimulating the U.S. economy and preserving jobs achieved, the industries should be returned to their erstwhile owners to elect a new board of directors and drive onto a new course, the road paved by the economic improvements over the duration of the nationalization period.
10) This plan will allow us to save the auto industry while saving and creating jobs, all while investing in a green future and reducing the national debt and trade deficit. It will also promote the kind of intellectual property advantage the United States has had in previous eras and help to provide for a long term healthy and competitive private market. It will advance numerous goals of the United States and should be implement post-haste.
Friday, February 20, 2009
Wednesday, February 11, 2009
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