Battle4Liberty

The NHTSA and NASA released the findings of a 10-month investigation into the cause(s) of Toyota’s “unintended acceleration” problem, concluding that driver error was the culprit for most of the incidents. Even the “government watchdogs” must concede now that the severity of the problem was much overblown.

This was no surprise. Toyota’s predicament served as a perfect opportunity for the Obama Administration to flex its anti-business muscle. The Japanese company has been a competitive thorn in the side of U.S. carmakers and the UAW for years. Besides, the government needed a way to prop up sales of vehicles produced by General Motors, a company majority-owned by the government at the time. Transportation Secretary Ray LaHood’s own bias was apparent when he advised consumers (before later amending his comments) in 2010 not to drive their Toyotas. He now admits that “Toyotas are safe to drive.” Thank you, Mr. Secretary, for telling us what millions of Americans already confirm to be true on a daily basis.

Needless to say, this crisis has cost Toyota a fortune. Ray LaHood should be fired for his reckless behavior, but I’m not holding my breath. Alternatively, an investigation of the DOT and NHTSA’s handling of the Toyota incident is in order. LaHood should be required to take the stand and to account for his agency’s mismanagement. LaHood expected Toyota to apologize to the American people for accidents whose cause had not been fully established. LaHood owes both Toyota and the American people an apology.

So what can we learn from this crisis? Our “government watchdogs” are not apolitical, unbiased entities whose sole mission is the safety and wellbeing of the American people. Unlike the companies they regulate, they don’t have to answer to customers and shareholders. Even when their costly speculations turn out to be unfounded, they can always find something to reinvestigate. LaHood told us on Tuesday that he’s “still examining Toyota’s pedal design.” In other words, he didn’t find a smoking gun, but he won’t close the book on the investigation. To use a sports analogy, these guys never lose a game. When the clock is about to expire and they’re behind, they simply change the rules and add more time.

It is also true that government should not get involved in business ownership as Washington did with GM, but this issue has already been addressed in a previous blog post. The key point here is that the mechanisms inherent in capitalism—not bureaucrats—will ensure that Toyotas are safe in the future. Its cars are thoroughly and independently tested without any federal oversight. Drivers won’t purchase Toyotas if they are not safe, and the legal infrastructure will penalize the company if it cuts corners on safety. Heavy-handed government intrusion into this process is costly and disruptive. It serves only to create the illusion among some that government authority is a necessary counterweight to the inherent evils of capitalism.