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Detroit Fails

May 15, 2009

I predicted it in a post from November 18, 2008.  It might be satisfying to report if it weren’t so easy.

Capitalism works by way of creative destruction.  I like to think of it like yeast–maybe because yeast makes things I enjoy, like beer and bread.  Put the yeast and sugar in warm water and it takes off.  That’s the free market.  Bubbles form, grow and eventually burst.  That’s the Detroit car companies.  But when they do, they reveal little bubbles already growing under them which in turn grow themselves.  They are the new companies with new technologies–green, efficient, and innovative–that are going to take their places.  The whole mass of yeast just keeps getting bigger.

A friend of mine said today that she’s actually excited about what’s going to happen.  She said that Deming tried to show Detroit how to become efficient.  They didn’t listen but the Japanese did.  You know, the car companies that are still doing well in the southeastern US.

Only the federal government can screw this up.  They’ve poured billions of taxpayer dollars down the Detroit rathole and they’re going to use that excuse to give ownership to the unions who spent $65 million to get them elected.  That is just so wrong on so many levels.

Detroit too big to fail?  I think not.  The Big O isn’t too big to fail either.

Come to think of it, I’m excited too.  Can’t wait to see what ‘s going to replace Detroit and Washington.

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