Motoring perils and moral hazard
From atimes.net's 'Notes and Quotes':
As the US Congress begins probing Japanese auto giant Toyota, some fear for the fairness of the proceedings on the grounds that the company has close ties to a number of lawmakers who will lead the inquiries into safety defects. Apart from Toyota's $25 million spent on lobbying in the past five years, and the former congressional and executive branch members on the lobbying team, a dozen current lawmakers have owned stock in Toyota since 2008. These include Representative Jane Harman, who serves on the House energy committee, which is among the bodies examining Toyota.
Are we forgetting something here? Oh, yes: it may just be possible that the fairness of the probes will be impaired by the fact that not only congresspeople but all Americans own stakes in Toyota's chief American rivals. The US owns 61% of General Motors after bailing it out with $49.9 billion, and 10% of Chrysler thanks to a bailout of $14.3 billion.
“Here’s another reason you don’t want the government in the car business. It sure has given every impression of the government discriminating against its direct competitor.” - Indiana Governor Mitch Daniels
But then again, Toyota employs about 172,000 people in the United States, many of them in Indiana ...
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atimes.com ('Japan beset by auto apathy' ):
atimes.com/atimes/Japan/LB23Dh01.html
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atimes.net ('In Japan, an end to auto eroticism'
):
www.atimes.net/Japan/japan-beset-by-auto-apathy.html
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Will the inquiries be fair or biased, and if the latter, towards whom? Have your say here. Or take part in the atimes.net poll on the issue (members only). Up in a couple of hours.
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