Auto Solution

Apparently, there is a relatively simple solution to the auto industry problem - something communist China has figured out using capitalistic principles. While the Obama administration wants to spend billions of dollars bailing out the auto industry, China has decided that cutting taxes works.
It has decided to cut taxes on new cars. China has cut in half the retail taxes on certain cars and drawn up plans to give out vehicle subsidies in rural areas to revive demand after auto sales rose at the slowest pace in a decade last year. The result: Auto sales in China went up 25 percent in February. In fact, even General Motors will gain from this action. GM has revised its forecast to double its forecast for growth in the China auto market.
Post courtesy of James J. Pirretti