Reply #44: Obama uses too many carrots and not enough sticks. [View All]

[calmblueocean]

Obama has shown an aversion to making change through strong regulation. He's more likely to lay out guidelines, and offer money towards achieving them, than he is to simply make industries to do the right thing. Take his "Health Care for Hybrids" program. Here's how he describes it:

"...it would allow the federal government to pick up part of the tab for the auto companies' retiree health care costs. In exchange, the auto companies would then use some of that savings to build and invest in more fuel-efficient cars. It's a win-win proposal for the industry - their retirees will be taken care of, they'll save money on health care, and they'll be free to invest in the kind of fuel-efficient cars that are the key to their competitive future."

It's an innovative idea, and maybe it will get the results he wants. But why are we picking up the tab for auto company pension health care plans? I'm not a fan of bailout capitalism and that's what this is. There is plenty of room for public private partnerships, and for government incentives, but in this case, I think it sends the wrong message to companies -- that they can use the threat of stagnation in their industry in order to get the government to take over some of their liabilities.

So that's one beef I have with him.