Big Three and Hillary agree, we need more government.

The Big Three automakers met with President Bush on Tuesday to discuss ways to make Detroit more competitive. While they felt that they made their point,

"It was a tremendous dialogue with the president this time."

W's quote is somewhat less optimistic.

"These leaders are making difficult decisions, tough choices to make sure that their companies are competitive in a global economy," Bush said. "And I'm confident that they're making the right decisions."

I don't read, "I'm here to rescue you" in that sentence. Good for W.

However, Hillary's words are good for Detroit (and bad for the US free market)

"I hope that this meeting marks the beginning of a renewed commitment to a public-private partnership in which government and industry work together to address the challenges that are so important to both the American economy and American workers," she said in a letter she sent to Bush, which was released just before the meeting.

Call me old fashioned, but I think the best way the Government can help business is by saying, "Here, let me get out of your way." Not, "Hey what special breaks can we give your industry." I don't want a "renewed commitment to a public-private partnership." I want a renewed commitment to a free-market and less government spending.

The bottom line is that Japan produces profitable vehicles in America. Japan also produce high quality cars in America. Might profitable, high quality cars be the reason for Detroit's woes? Rather than complain, how about adapting? All the protections the Big Three now enjoy have only prevented them from having to adapt, which has only made them weaker. By being able to always have the lowest cost car in a category, Detroit wound up competing on price alone, which made them commodity producers. The only way to make money as a commodity producer is to sell a lot, cheaply, and hope for slight advantages in margin. Detroit's put itself in the position of only being the option for people who can't afford quality, or who are being patriotic and assume that "Ford" is American. That's not a long term successful strategy. Without the protections, Detroit would lose the low cost advantage that they've grown addicted to and be forced to produce high quality, customer friendly vehicles. At that point they would become stronger and be on the road (heh) towards long term success. More government help only delays the inevitable. Either fail, or adapt.