A Car Czar in Washington?

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In The Media

A Car Czar in Washington?

As lawmakers appears to be finalizing a bailout package for the automobile industry, experts disagree over the prudence of this bailout. Many believe that the government should stick to what it has historically done best—regulating and adjusting incentives to guide industry—rather than attempting to invest in and manage the auto industry.

By David Rothkopf

Published on Dec 10, 2008

Source: NPR's On Point

As lawmakers appear to be finalizing a bailout package for the automobile industry, experts disagree over the prudence of this bailout. On NPR’s On Point, David Rothkopf argued that the government should stick to what it has historically done best—regulating and adjusting incentives to guide industry—rather than attempting to invest in and manage the auto industry. He emphasized the fact that the government is not good at managing companies, and the current panicky atmosphere should not fool us into making another hasty mistake like the Wall Street bailout.

Moreover, giving the government a significant stake in the auto industry might create conflicts of interest with the energy reform goals of the next administration. The government’s ownership stake could make it slower to embrace a system-wide shift in energy policy and regulation, which would be a mistake in an era when this type of change is vital for protecting our climate, our national security, and our economic stability.

About the Author

David Rothkopf

Former Visiting Scholar

David Rothkopf was a visiting scholar at the Carnegie Endowment as well as the former CEO and editor in chief of the FP Group.

Recent Work

In The Media
How Bush, Obama, and Trump Ended Pax Americana
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In The Media
A Bigger Clubhouse
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Political Reform Economy North America United States

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

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