Monday, January 26, 2009

Quote of the Day

"If today's Washington were moved back in time a hundred years, they wouldn't be able to bail out buggy whip factories quickly enough: manufacturing and green jobs together!"

Couple of links. The CAW tells us that for some reason, car companies don't like money. In fact, they hate money so much that they refuse to move all their factories to Canada, where they could make a killing if only they listened. Actually, the data do support that Canadian factories produce vehicles in fewer hours, even taking into consideration the types of car. The CAW report doesn't talk about cost, differences between the plants, etc, so presumably there's something out there in Canada that makes us less than the manufacturing paradise the CAW describes - e.g. the cost of Mexican labour probably offsets the 35% (CAW numbers) productivity advantage. Coincidentally, unionized plants are even better for the manufacturer!

Obama has officially repudiated the Pigou Club by implementing strict standards on mileage. Since this is of course a big cost for the auto companies, I would expect another auto bailout in the near future.

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