In a Rush to Fail

I almost never have a problem with someone standing up for their convictions.  I also don’t have a problem with people trying to make a living.  But I do have a problem when somebody is willing to put others in peril in support of either of the above.   This is why I am seriously disappointed with Rush Limbaugh.

For those of you who do not know, Rush Limbaugh has called for a boycott of General Motors.  In general, I am not against boycotts.  Boycotts are a good tool when used to illicit a change in behavior.  Boycotts are a bad thing when the goal is just to have someone else fail.  Unfortunately, Rush Limbaugh called for the boycott because he wants anything associated with President Obama to fail.  As reported by the Detroit Bureau, “the most amazing thing here is that Limbaugh appears to be openly admitting that the purpose of this is economic and political sabotage — to prevent President Obama from succeeding at something.”

Other conservative pundits support the boycott because the government involvement in GM is contrary to their beliefs in having free enterprise.  If Rush and the other conservative pundits are correct, GM will not survive due to the government’s ownership.  I have made similar statements about China’s goal to be a leader in the EV market. While I respect the conservatives trying to support a free market economy, I think that if the intended result of the boycott is achieved it can have a potentially dramatic negative effect on the overall economy.

If the majority of economists are correct, the current state of the economy is not good.  Although the economy is expected to start a recovery soon, it is still in a fragile state.  Any unnecessary negative economic event will have a multiplied effect on the long term stability of our economy.

It is unrealistic to think that a majority of the people boycotting GM will automatically buy a domestically manufactured vehicle.  If only 40 percent of the “boycott buys” are imports, our economy will still lose tens of billions of dollars in lost wages and taxes.    Workers will lose their jobs and benefits adding further strain on the economy.  Consumers will lose confidence in the economy and pull further back on spending. 

We are a long way from the time when “what was good for the country was good for General Motors and vice versa” could be argued, but there still is something to it.  Well at least for now.   With both GM and the economy in a tenuous state, we need to do everything to ensure a strong economy.  Calling a boycott on GM is the opposite of what we should be doing.  In this case a boycott is also opposite to the principles of a free market.

Do I really think that the boycott will cause GM and the economy to crumble? No.  I just do not want to take a chance.  If the people calling for the boycott really care about our economy, our workers and our nation they run the risk of a hollow victory.