Big Government, the only winner from government-ordered dealer closings (Rep. Roscoe Bartlett)

Today, I met at an auto dealership in Frederick, Maryland with dealers from throughout the area and dozens of employees. We were there to talk about the wisdom and impact of the federal government Auto Task Force forcing the closing of dealerships . The wisdom was impossible to find. The impacts will be devastating. No one at the news conference could identify any benefits for consumers, communities, dealers, employees or the car manufacturers from the decision by the federal government to abruptly cancel franchise contracts with 800 Chrysler dealerships, 18 of them in Maryland.

Here's why:

These Maryland dealers are local, independently owned small businesses. They employ an average of 67 employees per dealership. They buy the cars from the manufacturers and bear the total costs of selling to consumers.



Ending franchise contracts will cause:

No reduction in manufacturer costs, as dealers finance their inventories upfront

A dramatic reduction in manufacturer's future revenue by slashing the industry’s primary purchasers and distribution network

150,000 Americans at dealers out of work nationally, over 1,100 in Maryland

Consumers will lose competition and local options for automotive service and sales.

The only possible winner will be those who want bigger government and more control over the economy.

With the collapse of the Soviet Union, I thought our country and the world learned the lesson that government control ruins economies rather than saves them.