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Does the U.S. Need an Auto Industry?


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2010 Feb 19, 4:23pm   13,205 views  78 comments

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Cited From: http://roomfordebate.blogs.nytimes.com/2009/04/30/does-the-us-need-an-auto-industry/

With its survival, at least in the short term, so dependent on public assistance, it seems fair to ask, do we need a domestic auto industry? Many American manufacturing industries, like textiles and electronics, long ago moved to other producing countries. Why is the auto industry different?

How a Domestic Industry Helps All Americans
Roger Simmermaker, an electronics technician for a large defense contractor and the vice president of his local machinists union, is the author of “How Americans Can Buy American.”

We need a U.S. auto industry because American companies employ more American workers; support more retirees, their families and dependents; pay more taxes to the U.S. Treasury; have a much higher domestic-parts content in their vehicles, and operate far more factories in America than foreign-owned companies.

If the Big Three fail, the American taxpayer will be paying the pension and health care costs for the affected workers and retirees. G.M. spent $5.2 billion in health care alone for their workers and retirees in 2004, for example. That’s $5.2 billion foreign-owned firms like Toyota and Honda didn’t have to pay because the Japanese government covers these costs for their home companies. That’s $5.2 billion American workers and retirees could instead use to contribute to the vitality of the communities in which they live.

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78   Â¥   2010 Mar 13, 12:35pm  

4X says

So you are saying that land that is sitting and not being used should be tax heavily to encourage its usage?

Ideally all land underdeveloped land (compared to its zoning) should be redeveloped or abandoned to the city, no?

This is just a standard Georgist boilerplate position. Density is good in that it can make for more efficient (walkable) neighborhoods and a variety of lifestyles. Manhattan was kinda brilliant in setting aside such a large chunk of the island while encouraging density everywhere else. Zone more density and you can zone more parks, too. Win-win.

Here's what Churchill said in 1909 on this topic:

"The greater the population around the land, the greater the injury the public has sustained by its protracted denial. And, the more inconvenience caused to everybody; the more serious the loss in economic strength and activity -- the larger will be the profit of the landlord when the sale is finally accomplished. In fact, you may say that the unearned increment on the land is reaped by the land monopolist in exact proportion, not to the service, but to the disservice done. It is monopoly which is the keynote, and where monopoly prevails, the greater the injury to society the greater the reward to the monopolist. This evil process strikes at every form of industrial activity. The municipality, wishing for broader streets, better houses, more healthy, decent, scientifically planned towns, is made to pay more to get them in proportion as is has exerted itself to make past improvements. The more it has improved the town, the more it will have to pay for any land it may now wish to acquire for further improvements."

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