Motormouth Online

Few of us understand the financial crisis we faced near the end of last year. Only glimpses of the potential total worldwide financial meltdown were known as the outgoing Bush administration rushed through emergency bailouts through congress. Make no mistake about it; this was an embarrassing moment for the outgoing Republican administration and congress. Many had grown weary of this administration "crying wolf," as they had when they manufactured fear of Iraq. Yet just as we know that Saddam Hussein was not responsible for 9-11 and that fear over weapons of mass destruction was unfounded, we now know that the economic sky was indeed falling and the wolf was really at our financial doors. Mere hours existed between action and total worldwide financial collapse. To say that this was the most severe economic crisis since the great depression of the 1920's is not an overstatement.

It is right not to focus on the past as we try to build the future, but we cannot hide the truth that this crisis was a result of the former Republican administration. Neither can we overlook the fact that the Democratic majorities in the House and Senate were complicit, negligent and co-partners in creating this disaster. Wherever the blame is placed the only one who cannot be blamed for our economic woes is the current President Barrack Obama. In office less than nine months, speculation of his failure to right the ship might be fair, but blame for the crisis is not. I understand politics - maybe a little too well. It is one thing to predict failure, but it is quite another to work actively for failure. I'll be the first to say that I'm not sold on all of the stimulus spending. I share concerns about increasing our debt. I'm outraged by corporate pay to CEO's responsible for much of our problems.

Yet we must give credit where credit is due. One program has been an undeniable success. Cash for Clunkers, while fraught with complications has worked as planned. To say different, is to keep ones head in the sand ignoring facts and statistics. Only the most partisan hack continues to attack this program. These voices are rapidly being silenced because auto dealers, a traditionally reliable and powerful Republican grass roots constituency, like the program. Local dealers have the ear of every Representative, Senator and local political official, so while there have been problems it has certainly stimulated auto sales.. Cash for Clunkers alone cannot save the auto industry but it has given a tremendous boost to this struggling economic segment.

Many people miss the fact this program has provided traffic and interest in buying across the board. A renewed optimism and increased consumer confidence may be the best part of this stimulus bill.

As of Monday August 10, 2009 C.A.R.S. has over $1.15 billion dollars worth of applications submitted. The new problem is that dealers are out of cars.

• Top 10 new vehicles purchased

1. Toyota Corolla

2. Ford Focus

3. Honda Civic

4. Toyota Prius

5. Toyota Camry

6. Hyundai Elantra

7. Ford Escape

8. Dodge Caliber

9. Honda Fit

10. Chevrolet Cobalt

• Top 5 manufacturers of purchases

1. General Motors: 18.7%

2. Toyota: 17.9%

3. Ford: 16.0%

4. Honda: 11.6%

5. Chrysler: 10.6%

• Top 10 trade-ins

1. Ford Explorer (4wd)

2. Ford F-150 (2wd)

3. Jeep Grand Cherokee (4wd)

4. Jeep Cherokee (4wd)

5. Dodge Caravan/Grand Caravan (2wd)

6. Ford Explorer (2wd)

7. Chevrolet Blazer (4wd)

8. Ford F-150 (4wd)

9. Chevrolet C1500 (2wd)

10. Ford Windstar (fwd)

• The government says the program has exceeded expectations in removing gas-guzzling vehicles from the road.

Average mpg of purchases: 25.3

Average mpg of trade-ins: 15.8

• Top 5 states by vouchers requested:

1. Michigan: $44.4 million

2. California: $39.9 million

3. Ohio: $37.7 million

4. Texas: $35.0 million

5. Illinois: $33.7 million

C.A.R.S. aka "cash for clunkers," finally created a buzz among auto buyers. The success is that they burned through a billion dollars in less than a week. Did the government actually get this stimulus package right?

Well yes, but not without typical foibles for any program rushed through the halls of Congress.

Before we get to the obstacles, let's look at the goals. The first goal was to provide economic stimulus to an American industry deep in crisis. Cars sales are down by over one third. Two of the "Big Three" required a hundred billion dollars of taxpayer money just to survive a hasty bankruptcy, leaving stockholders and debtors holding the bag. Thousands of shattered lives, unemployed in their middle age created a ripple throughout associated industries. This failure of one of the last vestige of American manufacturing has been catastrophic to the economy.

But the same legislators who were so free to fund semi-criminally negligent corporate enterprises required much more to stimulate individual consumers. After giving a hundred billion dollars directly to corporate fat cats, sixteen billion was proposed to initially fund the C.A.R.S. program. This program was then gutted by three quarters to only four billion. Finally, a mere one billion dollars was approved along with very high expectations. In addition to the goal of stimulating economic activity, an additional goal of removing gas-guzzling, air polluting older vehicles, seemed like a good idea. Replacing these vehicles with more efficient, environmentally cleaner cars would stimulate the economy and produce true "trickle-up" job creation.

The obstacles were great, fraught with opportunities for waste and fraud. The program was rushed, with over 136 pages of published rules for dealer compliance . Dealers had to apply to be certified, allowing direct access to computers and bank accounts for compliance and electronic fund transfers. No government agency was equipped for individual transactions, so Citigroup was tapped to administer funds. Over thirty pages of documents had to be scanned and transmitted for approval of each individual deal. Citigroup computers crashed under the onslaught of demands. Dealers were required to verify that clunkers could never return to the road. A solution of sodium silicate must destroy the engine of each "clunker" before transportation to certified recyclers. Determining the amount of the rebate requires strict adherences to published EPA Mileage estimates for both the clunker as well as the new vehicle.

Yet in spite of these obstacles, there remains a pent up demand for new cars. The success of the CARS program was surprising. In just three days, consumers turned in over a quarter million clunkers for new fuel-efficient cars. An emergency extension of two billion dollars is making its way through the halls of Congress. Still far from the sixteen billion dollars requested or even the four billion dollars initially approved, the value of this program is undeniable.

Just a few years ago, we produced and sold almost 17 million vehicles in the United States. After the last two years of steady decline, we will be lucky to hit 10 million this year. People want and need new cars, but many are reluctant to enter into a five-year finance contract for a replacement vehicle when they are afraid their job will end this year. What we need is optimism. Consumer confidence depends on a belief that the economy will recover.

Frankly, I'm getting tired of political obstructionists and their corporate media mouthpieces. It is one thing to be the loyal opposition and provide a check and balance for one party rule. Yet it is another to want and work for failure. Recently a poll revealed that over half of self-identified Republicans expressed doubts that President Barrack Obama was even an American! Issues like this, work to divide and stall progress. It is not only useless, it is in direct opposition to the interests of the United States. Texas Governor Perry recently even spoke of his state's possible succession from the Union. It's time for patriotism, not bad mouthing our government. If there is any time we must get behind our President, it is now. I am as skeptical of government as any, but we must realize that we have a government of the people, for the people and by the people. Being optimistic that government can play a role to help us solve problems is still patriotic. There are too many people more concerned about military might rather than economic might. The possibility of any foreign power doing real military damage to the United States is virtually nil. However, our economic collapse and subjection by foreign powers is much more realistic. It's time to embrace recovery.

So does "Cash for Clunkers Work? I believe the answer is a qualified, yes but we need more.

It's my belief that the Federal 55MPH speed limit was one of the worst laws passed during the last 50 years. I acknowledge the twin goals of saving lives and energy are among the most noble reasons for passing new legislation. It is a fact that reducing the maximum speed on our highways would help save many of the 40,000 lives lost in traffic accidents every year. Reducing speed would save consumers thousands of dollars, reduce our dependence on foreign oil and save the planet from additional pollution. So if reducing speed has such great consequences, why would I say that the 55MPH speed limit is a bad law.

This law did more to foster the disregard for the rule of law than any other single act in my memory. An entire generation grew up with the reality that 55 MPH really means 60 or 65 MPH. No other law was regarded with such impunity by so many people. Teenagers learned that even the most responsible and pious adult broke the law. Parents, preachers, professors, and even police officers routinely stretched this law. In fact, to obey this speed limit often put the driver in a position of causing an unsafe condition.

We should have learned this lesson from the failure of the 18^th amendment to the US Constitution. As otherwise honest citizens routinely ignored alcohol prohibition, the very principle of the rule of law was injured. Unenforceable laws concerning prostitution, marijuana and gambling do more to perpetuate lawlessness than encourage good behavior. The result of limiting personal freedom and liberty with laws that cannot and will not be enforced is that we teach disrespect for the rule of law.

While we are addicted to making laws concerning driving behavior, Drivers Education is fading from our public schools. Cars are not competitive in the market unless they can accelerate to twice the legal speed limit in a mere matter of seconds, and fast food drive-ins encourage us to eat and drink while driving.

Currently the discussion is to outlaw driving while talking or texting on a cell phone. We know any distraction is dangerous behavior. Research suggests that usage of a mobile phone impairs driving at a greater degree than driving while intoxicated. Reduction or limiting cell phone use while driving would save lives and prevent injuries. Yet we know that this law will be ignored, just as the 55 MPH speed limit was ignored. Saving lives is a noble goal but preserving respect for law and liberty is an even greater goal.

Let's see if we can't find a solution to driver distraction that doesn't require another unenforceable law.

I can't speak for automobile manufacturers, I have no inside information and to my knowledge the fight for universal health care is not an official position of any American automobile manufacturer.

But it should be.

I too am concerned about the tremendous rate in which government is spending money. Trillion dollars spent on a war combined with billions spent on the financial and auto industry may make health care reform seem too expensive at this time.

However, American business cannot afford to wait. American people cannot afford to wait. It is time for a change. In order for this economy to experience lasting recovery, the burden of providing health insurance must be removed from employers.

Several years ago, the cost of providing health care and legacy costs outstripped the cost of steel in an American automobile. Now well over $2,000 per unit this lug on American automobiles places us at a global disadvantage. American remains the only industrialized country in the world where the employer is responsible for footing the bill of medical coverage for employees. If General Motors, Ford and Chrysler are to compete and survive, this uncompetitive burden must be lifted.

Lately we have seen an unusually harsh hatred of government by otherwise patriotic Americans. A healthy distrust in government may be essential for a free enterprise capitalistic system, but with some, there appears a blindness to the reality that government can and should provide legitimate social services. We do not want a "for profit" police force or military. Most of us see the necessity of free universal public education for all children because we understand that education for all, benefits all of society. Public Parks, public roads, public fire protection are all valued by citizens, as worthy of public funding. In a society where human life is valued and founding documents speak of an unalienable right to life, public health care should not be in question.

As medical technology and pharmaceutical costs increase exponentially, group health plans provided by individual employers must be replaced by the only organization large enough to spread the cost. Without health reform legislation, almost all policyholders will see a radical increase in private insurance rates for 2010. Only government is large enough to take advantage of the "law of large numbers." As a former insurance professional, I learned about the "law of large numbers." Costs are reduced when risk is spread over a large number of people. Underwriting which excludes pre-existing conditions and high-risk individuals may increase profit and performance of a particular health insurance company, but the greater expense is born by society at large.

I am urging immediate passage of health reform legislation.

From Kansas City, we headed North on I-35 to Cameron, MO., hanging a right on Highway 36 we found Chillicothe, MO about 115 miles from my home. Home of the first bakery to offer, "sliced bread," the annual car show may be the best thing since sliced bread for this town. It was an absolutely perfect day for Kerwin Looney and I to attend this annual event. Driving the yet to be released 2010 Ford Taurus, our car attracted almost as much attention as some of the hotrods, muscle cars, classics and customs that populated the tree lined park.

This is Mid-America at its best. Young and old alike appreciate the art that is the automobile. For me it is exciting to hear old men talk about cars of their youth and the journey to restore past treasures. From the original AC cobra with an authentic VIN plate and an experimental four-bold main 289, to the new Dodge Challenger SRT8 Limited Edition destined to be a classic, this show had it all. An original 1959 Dodge Highway Patrol Car and the all-original 1959 Chevrolet Impala gives rapidly aging middle aged men, new hope of what 50 years old can look like.

The automobile industry is in crisis, especially the American automobile manufacturer. However, a stroll through these three hundred cars on display tells me there is a passion for American Iron. The automobile is an extremely passionate experience for many. It is more than just a machine to take us from point A to point B in safety, comfort and somewhat economically. To many the automobile represents freedom. It was the vehicle that first gave us the freedom to travel on our own away from our parents. It was the vehicle that allowed us to be with our first love away from prying eyes and listening ears. Cars allowed us the liberty to go where we wanted, when we wanted. The memories of our first taste of freedom lives in the memories of our first cars. Cars and trucks are where we often made mistakes. Some of these mistakes were life changing and dangerous, but they will always be strong memories.

I'm optimistic about the automobile industry. There will be change, some of it painful. But, this generation will not give up the personal freedom of the automobile. You can see the passion in the thousands of visitors at this car show. Chillicothe Missouri is Middle America, but this feeling is found in every town, hamlet and village. For those of us who love cars, revisiting the cars of our youth will always be the "best thing since sliced bread. "

Let's face it, problems in the collapse of the auto industry and impending collapse of the health industry do not come from one single scapegoat. Almost every interest group associated with the American auto industry must accept some blame and therefore must be part of the solution.

• Did unions fail by demanding that their workers get paid 90% of their salaries even when they were not working?
  
• Did management fail by building a bureaucracy that couldn't rapidly respond to market trends?
  
• Were investors short sighted in their demand and expectations from the company?
  
• Did the market give lip service to safety, environmental and economy standards while continuing to purchase high-horsepower mega-sized truck-based SUV's for commuting from the burbs?
  

Sure they all were at fault. But one group that escaped scrutiny in both the automotive and health industry debate was the role of the personal injury attorney.

I am not unaware of the suffering caused by auto accidents. In addition to the 40,000 fatalities every year on American roads, the suffering and hardships of those injured and their families are often exacerbated by negligent faulty designs. However, greedy and opportunistic Personal Injury attorneys do little to help the problem. I have witnessed how manufacturers refuse to change a faulty design for fear that change would be an admission of guilt, opening them up to even greater legal liability for the previous design.

Automotive design continues to evolve, but the push for safer automobiles should come from consumer demand and active government regulations rather than punitive awards.

Product liability cases remain a legal lottery where few consumers benefit but many attorneys get wealthy. In the end, the cost is always passed on in the prices of future products.