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Friday, June 02, 2006

Blame both political parties for high gas prices

When it comes to high oil prices, don't just blame Republicans. Democrats have helped create Americas foreign oil gas-guzzling SUV culture.O.K., so Republicans have ties to big oil, that's obvious. But can you really blame high oil prices completely on Republicans, especially when the price of oil is decided in the open markets by traders trading future shares of oil every single second of the business day? How do you manipulate that? Still, Republicans deserve criticism for their close oil ties.

In addition to oil, Democrats ridicule the President's minor CAFE updates, and they are minor. In fact, they are essentially worthless. Yet, less than a year ago, when Congress had a chance to significantly update CAFE, did Democrats make a stand? Heck no. How would Democrats funded by the labor unions that 'protect' autoworkers explain this to the Union leadership, to the workers that would lose their jobs - and to a huge endorsement and source of campaign money?

In reality, when it comes to high gasoline prices, Democrats are very dirty.

That's what makes the new Harbour Report North America 2006 so darn interesting. The Harbour report studies the efficiency of automobile production in the U.S. Surprise, surprise Japanese automakers, even those in America with American autoworkers, are more efficient than American automakers.

While Detroit is closing the gap, this gap still exists and has existed for decades. Today it takes the most efficient Japanese automaker 7.33 hours less per vehicle in labor hours compared to the least efficient American automaker. Less than 10 years, in 1998, the number was 16.56 hours.

What does this number mean? Ultimately, if you spend less time per vehicle, it is because you have less problems, or better quality. Thus, American workers working for American automakers have been spending far more hours producing vehicles of far less quality than American workers working for Japanese automakers.

Again, this has been going on for DECADES. Is there really any wonder why Detroit has faltered over the years?

Detroits problems are far larger than just currency, or benefits, such as skyrocketing health care costs. For decades American automakers have been producing inferior products while spending a lot more time - thus money - doing it, and labor unions have been a huge part of that problem.

Sure labor unions have helped provide good wages and benefits for American autoworkers, but they have also contributed to creating an uncompetitive, inefficient American auto industry.

According to the Detroit News much of the recent gain in American automaker efficiency has "come as a result of progressive operating agreements the company has negotiated with the United Auto Workers union. The deals limit job classifications and rely on a team-based approach to manufacturing."

Shouldn't this have been handled a decade or two ago?

Consequently, for decades, Democrats have significantly contributed to the trend of gas-guzzling in the USA. Despite their rhetoric, and perhaps unintentionally, Democrats are probably more responsible for the SUV craze in America than Republicans. While American automakers do produce fuel efficient vehicles, most of them are produced outside of the United States. U.S. automakers largely produce ONLY foreign oil gas-guzzling vehicles in the States, and to a large extent, Detroit has had no choice. Only gas-guzzling SUVs provide enough profit to keep the Unions happy and the company afloat.

When it comes to America's foreign oil, gas-guzzling culture, there is plenty of blame to go around.

Even worse, as we head into 2008, little seems likely to change. Recently Hillary Clinton sided herself with Detroit and has skewed her focus more towards oil companies and their lack of E85, rather than the monstrous gas-guzzlers coming out of Detroit.

Ironically, even oil man, President Bush, has told Detroit to build more "relevant" vehicles, such as hybrid cars. Without more fuel efficient vehicles, E85 will be a program that America spends billions of tax payer dollars on, yet it will result in little change.

Well, I guess that sounds about right for big party American politics.

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