What is the Bail Out?
Posted by hanson807 on December 12, 2008
Seems like a simple question. Lend the car companies money so they can continue to operate. Question is, why? According to Barney Frank its so the workers don’t starve. He says he is bothered by the lack of leadership and Bush. After all, Barney Frank lead the effort to reform lending practices. His boy friend and him lead the changes that have tanked the housing market, so why not have Barney lead the charge on tanking the car industry too? Does anyone other than me find it just a bit ironic that Bush opposed increased pollution controls because of cost? Oh wait, that was Bush I in 1990. Certainly that doesn’t apply today.
We keep hearing tails of how the Unions have trashed the auto industry. But I don’t see how paying over 2.2 billion for workers who aren’t working could possibly affect GM. The union agreed to make concessions, in 2011. Of course that doesn’t mean much. The Union contract runs out in 2011 and you can bet the negotiations will not include a drop in pay at that time. There were a few principled politicians during the debate, Claire McCaskill said she wouldn’t vote on it unless they removed a provision that was for a raise in pay for federal judges. Now I’m just sure that is the only unadvertised special in the bill.
Another part of the why question is what do the legislators know that the American people don’t? Six in 10 don’t want them bailed out. So why do more than half the politicians want it? Aren’t they supposed to represent our interests? Maybe we see if for what it is, a preservation of the UAW and not the auto industry. Maybe most people think the union has had its day, now it just hurts us. In general, it doesn’t seem like the union folk understand that the auto industry is in a real bad situation. They seem to think they shouldn’t have to take a pay cut while their factories close. They seem to have lost track of who signs their paycheck. The union may have negotiated the pay, but the car company actually has to pay. If they are bankrupt, they can’t get their wages. They don’t even want to cut their wages because of it would change their standard of living. This isn’t a new thing for American Auto workers, heck Michael Keaton stared in a movie about it, Gung ho, in 1986. So we have seen the train wreck coming. We actually packed a lunch, laid out a blanket and got a good seat. It’s like they think if they just hold out, it will get better. Actually, if they hold out it will. We won’t be reading about how they aren’t going to negotiate. There won’t be anyone left to negotiate with. The auto companies are going bankrupt.
My old adage about divorce applies here as well. Better a horrible ending, then unending horror. Let them fail. They earned it. Someone will make cars again. We will survive.