Topic: Constitutional Issues
Auto Industry Bailout is next Don't move, Don't fight it, because the Auto Industry bailout is next and resistance is futile in these United Socialist States of America.by Jonathan Cymberknopf
(libertarian)
Monday, November 17, 2008
The Democrats want another bailout, this time for Detroit's automakers.
It is true, some prominent Republicans such as John McCain voted for the last bailout too, but that is why he lost the election. Whenever the Republicans stray from their principles as they have done and try to become "Democrat Light" they lose elections.
Having seen that the $820 billion dollar bailout failed, I know of no Republicans willing to make the same mistake twice. Therefore, this new bailout bill will not pass, but only for now. Once the Democrats take over in January with a strong majority in both the Senate and House, the bailout will surely pass with flying colors.
Not to mention, President-elect Barack Hussein Obama has already said he would strongly favor another bailout in Sunday's show ~ 60 minutes. Surprise, Surprise, Barack is pushing Socialism.
Although I'm sick over this disgusting act of corruption by Washington insiders to bail out the auto industry next, I will not ask people to write to their congressman or senator or to their TV news and newspapers this time as I had done previously.
I have come to the realization that in the end, it really does not matter what we Americans, what we taxpayers want or say regarding our very own money.
Prior to passing the first $820 billion dollar bailout, a great majority of Americans were against it and a month and half after passing it, a great majority of Americans are still against it. But does that matter? No. Did our elected officials listen to us? No.
A better question to ask would be on November 4th, did we vote against the very people who voted for the $820 billion dollar bailout? No.
There is an old saying that says "A people deserve the leaders they get".
Personally, I will never criticize the government of Venezuela or other governments again for doing the same exact things we are now doing.
The U.S. auto industry has had well over 25 years to figure out how to build a car and if they cannot do so and run an organization effectively then let the free market do its thing.
Besides the free market already have enough regulations or tools to help troubled corporations. It is called Chapter 11 where auto makers that are poorly run can be given the chance to re-organize.
But in the end, we all know it is all about the unions up in Detroit and the Washington insiders dealing and wheeling. After all, if you could stick your hand out for money knowing darn well you shall receive wouldn't you?
Welcome to the United Socialist States of America. ( USSA ).
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The views expressed in this
article are those of Jonathan Cymberknopf only and do not represent
the views of Nolan Chart, LLC or its affiliates. Jonathan Cymberknopf is
solely responsible for the contents of this article and is not an
employee or otherwise affiliated with Nolan Chart, LLC in his/her role as a columnist.
I used to be in the auto industry. The sense of entitlement within the employees is horrible. The big auto companies and their employees have become a big socialist comune of their own. That is one of the many reasons why it is failing.
Here are my views as an employee of Chrysler and GM in the last 12 years:
The company spends like crazy at all levels as does our government. They are extremely beurocratic like our government. They have a 'job banks' where union guys can't be fired so when plants shut they get paid to go to a warehouse do do ABSOLUTELY NOTHING like our welfare system. Some union workers have been in these job banks getting paid to do NOTHING for over a decade because there are no more positions for 'wood modelers' inside the company. UAW President said that the job banks is non-negotiable and these stupid executives granted their wish.
The top-level executives take the company down while sucking millions in 'bonuses' for the crapy job they have done and they cave into the ridiculous unions agreements like our politicians do with the voters. Performance is based on how well you kissed your supervisor's ass and not on actual performance like our career Senators kissing our asses in the voting booths.
Of those employees who are not union or high paid execs, there is a sense of entitlement for the number of years devoted to the company as if the company owes them. In reality other than pension benefits which are no longer there for the new guys, the company has already paid and overpaid them for all those years so there really is no debt due.
In GM, while they are reducing the workforce, they still have more managers than needed. You have a huge company with a lot of low level managers earning more than six figures managing just about 5 people, sometimes less, sometimes managers with NO people reporting under them. All of these managers and those above them in a hierarchy of about ten levels deep from the CEO have a perk of getting a new car as a company paid lease every four months including insurance, gas, maintenance, car washes. These cars are then sold as used cars through the dealerships with only four months used. There are lots of these managers who on the good days were promoted solely on seniority and entitlements. These managers ask for suggestions on cost cutting efforts. Most employees below them suggest to get rid of these free car lease program. ..and most of those managers reply: "I have been here for over 20 years, I deserve this perk" the entitlement kicking in again.
It is the sense of entitlement at the CEO level, at the low-level manager, at the non-union low level employee, and at the union level that in addition to all the other factors have ruing the auto industry.
See the similarities now between GM and the U.S. Government?
The unions of a 100 years ago are much different than the unions of today. A fair day's wage for a fair day's work is long gone. The bailout is more for the unions than for the companies themselves. If these companies go bankrupt it will result in the renegotiating of the union contracts and hopefully some of the perks that come along with working for the automakers. Maybe it will force them to act a little more responsible with their money and make affordable high quality cars.
I think you guys miss the point of UNIONS. They bargain for a share of PROFITS that the company HAS EARNED or WILL EARN. It's the mismanagement of the company's assets ~ and the bulging WHITE COLLAR workforce that drags these companies down.
The Unions still put out the cars. What do the WHITE COLLAR executives do? Just shuffle some papers around and walk off with bonuses, excessive compensation, and many other executive perks. Ever hear of Union "perks"? I don't think so.
You could let most of those executive "whatevers" go, and the company would run more smoothly with half the cost. Dump the execs. You need the unions to make the cars ~ and to buy them!
Hi Jonathan, Your first four words, "democrats want another bailout" are more than misleading. The bailout you refer to, which was by no means the first, was brought to the American people by a Republican administration with the option of "financial doom" if it was refused. Support was divided among both parties. Truly fiscally conservative repubs and truly populist demos were against it and truly capital corporatist repubs and truly socail demos were for it. Demo Peter Defazio led the resistance with his bill that called for no bailout, which was ignored. Repubs have long favored direct or indirect subsidies to capital corporations, defense contractors and energy companies. Demos have long favored similar subsidies to labor, welfare and public works. Both of these actions are "Big" government. Socailism and Corporatism have long been with us and reside on both sides of the aisle. We don't have a choice between big and small, we only have a choice between what direction we want the funds go. To think otherwise is an illusion.
You are the one missing the point on the UNIONS. Although the execs have done a horrible job while stashing unearned unjustifiable millions to themselves and bringing the company down, the Unions are not that great either.
Yes, there are plenty of exagerated Union perks: Not getting fired no matter how lazy they work; if their services are not needed they go to the job banks to get 90% of their previous pay for doing nothing for 8 hours a day in a warehouse; extremely high health benefits and grossly overpaid for the job they do; $30 per hour janitors who only empty trash cans that must be placed on top of the desks so that they don't have to bend over; job security (sort of); buy outs; the list is quite big.
You are saying that the unions bargain for a share of the profit? WHAT PROFIT? These companies have been buring their reserve like crazy.
Also, YOU DONT NEED THE UNIONS TO BUILD THE CARS! If you don't belive me go to any of the Toyota, Honda or VW plants right here in the U.S. all with non-union auto workers. I have been inside Toyota plants and I have worked on Chrysler and GM plants. I have witnessed a huge difference between the workers (all of them American by the way). I can tell you from experience that the non-union American workers in those plants were more skilled, slightly less paid with less benefits, though more enthusiastic and more efficient than the union ones. Therefore you don't need the union on these plants, you only need willing people to do the job for a maket based pay whether it be union or not.
What is needed is less executives with less compensation or at least profit based bonuses, less managers, more Engineers doing actual Engineering work instead of moving papers around, less regulation and beurocratic paperwork, and willing non-union workers. That is the Toyota and Honda way and that is why they have taken a big chunk of the market share. As of this writing GM's market cap is $1.59B even while losing Billions every month while Toyota's market cap is $95B with NO UNIONS and less executives and less executive compensation. The numbers speak for themselves.
The whole U.S. Auto industry has become a socialistic comune in itself, and there is a big similarity with the U.S. Government. It has been proven that socialism leads to failure whether is within a corporation or within government. GM can't keep his promises and neither will the U.S. GM will colapse and so will the U.S.
I can only hope I am wrong in my last statement because my local economy depends on the big three, and I get income from my wife's GM job, and my business depend on the auto industry. But I am frugal with no debts and getting ready for the Metro Detroit depression that will start here and spread throughout the Nation. Others are not ready.
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