Saturday, January 31, 2009

ART. SUBSTANCE & REALITY

I like art, photography and the artistic expression of life. I always find a painting or photograph that makes me appreciate an artist's depiction of reality. I marvel at the many differences inherent in our species, emanating from the biological similarity we all share. A subject's personality, which comes through in a photograph, painting or sculpture fascinates me; and I begin to wonder about the similarity between art, substance and reality. I frequently ask myself if the representations a person makes matches the reality of my observations, interactions and experience. Far too often, one represents their person as ethical, honest and forthright, yet substance does not match reality.

I am reminded today of the art of the automobile, more particularly the classic designs coming out of the studios of the Big Three automakers. So much of our popular culture surrounds the automobile. All of you, no doubt, have memories of cruising in summer time, stolen kisses at stop lights, the local burger joint, fun shared with friends and the sense of empowerment and mobility that ensued from earning your driver's license. Remember dating, parking, intimate times, travel and the growth of family, all associated with the automobile? Thus, the automobile inculcates our life experiences. So, it is with interest that I observe the hypocrisy coming from Congress, as certain members, with a vested interest in and support of foreign automakers, pile on the Big Three auto executives. "You came here in three, separate private jets? What about U.S. Anti-Trust legislation, Senator, would you then accuse those executives traveling in the same jets of collusion and price fixing? "Why didn't you travel via commercial jet?" Congressman, would you prefer that these executives, who could be targeted for kidnapping, extortion and worse, subject their organizations to even more uncertainty?

Hypocrisy abounds in Congress; and it is one reason why opinion polls register approval ratings by the electorate in the low twenty percent range. We have two automobile industries in America, one in the Midwest and the other in the South. One domestic, which built the middle class in America and has a vested interest in the welfare and well-being of America; and the other one is comprised of foreign manufacturers, whose interest in our citizens is purely monetary. With domestic manufacturers, the profits stay in and are reinvested in America. The foreign automakers take their profits back to their homeland. The loudest Congressional critics of assistance to the domestic manufacturers have a vested stake in seeing our domestic auto manufacturer's fail. Daimler-Benz, Toyota, Hyundai and other foreign brands established plants in the South, thus helping to reduce the market share of domestic automakers. Southern states attempting to lure foreign manufacturers sold the farm, so to speak, to lure foreign business interests to their state. The critics of Detroit Automakers are engaged in the worst case of hypocrisy...Self-dealing and self-promotion, while distorting the record and reality of why domestic manufacturers are on the ropes.

Lest we all forget, we acquired a strong national defense because of expansion of the country's tax base and growth of the middle class, courtesy of Henry Ford and his automation of the assembly line. We have a great transportation network of highways, roads and streets precisely because of American manufacturers. We have a host of new communities across the country, which leveraged the auto employee's wealth and employed a multitude of construction workers across our land. I could go on, but suffice it to say, that without a strong, domestic manufacturing sector, our country is and will become a much weaker nation. Who can we thank for our weakened status? In my opinion, the hypocrites in Congress willing to sell out our country, so that their constituents might have better jobs. In the process, they might reason that they look like heroes to voters in their district and perpetuate their own seniority and security. Tax breaks? Financial subsidies? The foreign automakers got them by the bushel load.

Since Congress opened this Pandora's Box of foreign competition, they have also placed American citizens in the position of having to fund the health care and pension plans of each automaker, and that of the numerous suppliers and suppliers to the suppliers. Taken in perspective, the auto industry is conservatively responsible for three percent of our nation's Gross Domestic Product. Should Congress not do the right thing and support the industry that made our country great and grew the middle class, what will that mean? In my opinion, a prolonged Great Depression, a shattered industry and a fractured national economy.

Responsibility for the social promises of the Big Three, likely will be broken in bankruptcy, a consequence of unfair, foreign competition. Accordingly, responsibility for the social welfare of their workers will fall into the laps and wallets of the American consumer. In bankruptcy, the auto employees' pension funds will become the responsibility of the Pension Benefit Guaranty Corporation, which is funded by Congress and the taxpayers. Currently, the PBGC has a deficit of over eleven billion dollars and bankruptcy of any one of the domestic manufacturers will create an even greater crisis, as tax payers pay for the company's pension obligations. Medicaid will become over-run by autoworkers turning to publicly social programs for their health care. Real estate values in America will rapidly diminish, not just in the Midwest, but throughout the South, where many auto employees have second homes. The social costs and the outcomes for every citizen in our country will bury us!

So, to those hypocrites in Congress, you will be held accountable and the consequences will be loudly shared with your constituents, who will face dramatically higher federal and state taxes. I suggest, therefore, that you take a close look at the benefits you provided to the financial institutions that you bailed out. Review your assumption of AIG, your boondoggles, lavish benefits you receive and answer the following question: What will you do when your Congressional benefits are terminated?

You may rest assured that a revolt is underway in America; and lame performance, indecisive leadership, shrill rhetoric and the inaction of Congress will come home to roost. Both parties will pay a steep price, crime will increase and the broken dreams of over three million auto workers, suppliers, dealers and others affiliated with the industry will make their voices heard.

Lest you think your foreign manufacturers will remain immune, you best take off your rose colored glasses. For the foreign interests share the same suppliers as GM. Ford and Chrysler. If one or more of the domestic manufacturers go under, additional bankruptcies will ensue and foreign brands will suffer from dramatically higher supplier costs, interrupted supplies and a diminished market, as America plunges into a Depression worse than we experienced last century. So, put aside your art of self-promotion, delusion and rhetoric that promotes local interests above the national interest. If you do not, your constituents will suffer and you will too, come the next election.

Apparently, good old fashioned horse sense, a sound foundation in history and economics and a patriotic sense of promoting country over parochial interests is in short supply in Washington. But, hey, horse stock might just come into vogue again!

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