McCain, Obama, Support Wasteful Hybrid Car Bailout Bill for General Motors, Chrysler, and Ford

General Motors, Chrysler, and Ford want the government to double the 25 billion dollar loan guarantees from the 2007 energy bill. Fortune Magazine's Mina Kimes fleshes out the details in the September 18th issue. Auto spokesmen say the 50 billion will enable U.S. companies to bring new hybrid cars to market much sooner. Helping automakers build hybrid cars means jobs to many people, so both presidential candidates are playing this plan for votes. That money could be better spent to create more jobs and innovation. "The Importance of Small Business to the U.S. Economy" showcases small business's substantial contributions.

Voters should consider several things about this huge financial package.

1. What are we trying to accomplish? Should American taxpayers save shareholders? Or improve the environment and the economy for as many people as possible? Cleaner, more efficient hybrid and electric cars, job creation, economic benefits, and an improved international American image can be accomplished by spreading the loans out to smaller companies. Inc. magazine's "Special Report on Innovation" shows the power small companies represent in the U.S. economy.

2. How will car companies use the money? If the United States government lends cash to American automakers, it will let them carry on business as usual. Huge sums of money will go to executives, marketing efforts, and Washington lobbyists. Some money will go to research and development, but there are more efficient, proven ways to spark innovation. American taxpayers will help the car companies and the labor unions they grapple with to continue their costly squabbling. Manny Lopez sorts through the issue in "The Detroit News," September 4, 2008 article, "Car Maker Cuts Must Go Deeper."

3. Are the "Big Three," (General Motors, Chrysler, and Ford), the best agents of change for more efficient transportation? Recent history shows the short-term profit outlook ruling large corporate boardrooms. Smaller, nimble companies are more likely to provide answers to great challenges. The highest hurdle for efficiency improvements does not lie in hybrid car designs. While hybrid car design improvements will bring small increases in efficiency, battery solutions are needed most. All-electric, plug-in technology remains the gold standard. Better batteries will make possible better hybrid cars, plug-in hybrids and all-electric cars, as outlined in Popular Mechanics March, 2007 article on the "Plug-in Challenge - 3 Big Questions for the Electric Car's Future"electric car's future.

4. A proven way to make better hybrid and electric cars for Americans lies in design contests. Cash prizes fuel competitive innovation to bring novel solutions and private funding for technical problems. The X Prize represents the potential with their slogan, Dr. Peter Diamandis explains the advantages of encouraging entrepreneurs to tackle tough development problems. Relatively small low-cost loans to battery companies would support many teams to tackle problems from different angles. While the winner of such a contest could own patent rights for a new battery solution, runners up could be awarded contracts to build batteries under license. These companies located near car factories will create jobs and spread the benefits through communities. Battery company engineers would team with car makers to use the technology with hybrid and all-electric car and truck designs. Small companies fuel our economic engine today. Yankee ingenuity will create batteries for export to the automakers of the world and the jobs to manufacture them. America can solve problems, not just burn resources.

5. Since the 2007 Energy Bill calls for low-cost loans and not a direct cash injection, some critics decry the label, If tax payers are doling out the cash and guaranteeing the lending rate, we are enabling the rescue, whatever it is called. Americans should get their money's worth. Handing the bucks to the creators and marketers of the SUVs sitting on car lots from sea to shining sea will not solve problems. Americans may feel helpless in the energy crisis that faces them. They are not. They bought SUVs and voted for politicians. Stockholders were eager for short-term profits. American car buyers helped create the problem and they can help solve it. Elected officials must feel the heat of America's frustrations. Call, email, and yes, write a letter to those in Washington responsible. Call you car dealer and tell him your next car will be a hybrid car or electric. Cut down on driving that gas guzzler to send a message (and save a few bucks).

Mina Kimes, "Now GM, Chrysler and Ford want a bailout too" CNNMoney.com

Joel Popkin and Company, "The Importance of Small Business to the U.S. Economy" Small Business Notes

Max Chafkin, A.G. Lafley and Ram Charan, Leigh Buchanan, David H. Freedman, "Special Report: Innovation -- Small Business Ideas -- Creative Entrepreneurs" Inc.com

Manny Lopez, "Carmaker cuts must go deeper"The Detroit News

Jim Motavalli, "Plug-in Challenge - 3 Big Questions for the Electric Car's Future" Popular Mechanics.com

Dr. Peter Diamandis, Success!!! Using Economic Engines to open the space frontier | X PRIZE Foundation XPrize.org