Here’s a creative view on bailing out the U.S. automobile industry. Daniel Sperling and Deborah Gordon wrote in the Opinion section of The New York Times, Nov 16, 2008. Actually, it’s more than bailing out, it’s also about saving the industry with high gas prices, and kick-start a revolution.

Here are some key points:

• It’s the automakers’ own fault as they have themselves been flirting with financial ruin, by building irresponsible products and promoting irresponsible consumer behaviors with inefficient vehicles.
• They may deserve bankruptcy, but this would also possibly lead to collapse of the companies themselves, and mass unemployment.
• How about maintaining price floor of $3.50 per gallon of gasoline? If prices fall below this, impose a federal variable tax to bring price up to $3.50. If prices exceed this, then the tax disappears. Various additional provisions can be put in place to accommodate special-needs individuals and situations, etc.
• Monies raised by the tax would be used to provide loan guarantees to auto companies. This would also require auto makers to produce large numbers of affordable, safe, fuel-efficient, low- or non-polluting vehicles in the near term, plus additional requirements for longer term. Other additional details may include requiring them to stop fighting California’s clean car standards and other standards, and going as far as requiring them to produce zero- or near-zero emission cars as well.

The bottom line is: here’s an opportunity to jump-start the revolution of providing clean, responsible transportation for the public. Talk is cheap. The government must be take important actions. Sperling and Gordon present a good plan of action in my opinion.

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