Wednesday, December 03, 2008

The GM bail out: fund it with a carbon tax, a break-up, and new fuel efficiency standards

Robert Reich is on fire. He's got one great Keynes mini-bio post, and another on why it's absurd to make fuel-efficient car manfacture a GM bailout condition.

Happily, my tyrannic rule is no longer needed in the blessed reign of Obama. If I were tyrant, however, these would be my bail-out conditions:
  1. Bail and break: Too big to fail means too big to live. Make breaking up GM a condition of the bail-out
  2. Per Reich: industry must sign-on to new fuel efficiency standards.
  3. Account for the bail-out monies through a carbon tax (not a gas tax directly).
  4. Offset the carbon tax (the Great Recession is the wrong time to increase next taxes) with a large investment in public transit development and universal wireless internet access to diversify commuting-free employment.
The same terms would, of course, need to be offered to every automotive manufacturer, not just GM.

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