30 year bailout?

So, now it’s the auto industry we have to “help”.  Although I distain it, the bailout of the banks and such is almost acceptable since this has been brewing for only the past five or so years but the auto industry?  We have been watching their decline for the past 30 years.  My gosh, when the truck gives you so much time to get out of the way and you just stand there, you deserve to get hit. 

There are many reasons for the failing of Detroit.  From not making cars that Americans want to mismanagement but the one reason that they are dying…the crystal clear answer is one word:

UNIONS

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12 Responses to “30 year bailout?”

  1. Politics and Culture Says:

    The government should only help them out if the UAW agrees to major concessions.

  2. Roland Says:

    I say let them fail. Look how many other businesses are no longer around. I mean, the airlines file BK all the time and many times, they don’t make it. Look back over the past 50 or so years…there are some airlines that no longer exist. In fact, it might be the best thing. If GM went under, they would get bought up and perhaps, just maybe, they would be run Union free.

    Have you seen some of the stats of companies that produce cars w/unions compared to ones that produce cars without? The numbers are staggering.

  3. Roland Says:

    Neal Boortz had a great example of unions at work in, of all places, Detroit:

    “Detroit is trying to clean up its image. In efforts to do so, the city council wants to give a $200,000 contract to a non-profit organization dedicated to the reforestation of the city. It’s being called The Greening of Detroit. The group made up of volunteers would plant 2,000 saplings in neighborhoods that have been plagued by some invasive species.

    Enter the local union: AFSCME Local 542. This union has now stalled the City Council from authorizing this agreement for The Greening of Detroit. Why? Because the local union sees this as competition for the city’s 50 forestry workers and they believe that the city is outsourcing THEIR jobs by allowing this non-profit organization to plant trees. Instead, this union would rather the government spend the $200,000 on trees and then pay the union workers to do the labor on top of that … rather than allowing these volunteers to plant the trees for free.”

  4. Robin Says:

    I live 50 miles northwest of Detroit and grew up in a suburb of Detroit. Unions have done wonderful things, but their time has past. They are the underlying downfall of the auto industry. You know, they pay people not to work. They literally sit around all day, play cards, etc, but don’t work. Can’t remember what they are called, but they have to be there by union rules. GM declaring bankruptcy would scare the world, but maybe it needs to happen. Ford reorganized recently and they were slowly making progress. Maybe GM needs to do the same. Like government – too much bloat.

    BTW the invasive species is the Emerald Ash borer. It has destroyed all the ash trees in the lower part of Michigan and is heading north. My back woods is now filled with dead trees and I spent the summer listening to my neighbor chainsaw about 100 in his yard. Very sad.

  5. Roland Says:

    Robin, I agree. There was a time for Unions but that was more than 50 years ago. Not only in the auto industry but in schools as well. Unions really need to go but with Obama and the new Democratic leadership, it ain’t gonna happen. In fact, they are probably going to do away with the secret ballot voting which will just make them all that much stronger.

  6. Ava Says:

    That is why the bail out won’t work for the auto industry. They will get the money but still have “manditory layoffs” for employees who will be layed off for eight months making 80% of their pay. That is all union!

  7. Robin Says:

    Some sobering facts if the auto industry dies.

  8. Roland Says:

    Robin, the best thing that could happen would be if the big three DID go bankrupt. They could then get out of these contracts that are killing them by the Unions. Fact is, they won’t die. They won’t cease to operate. Videos like that are just scare tactics. If anything, a company like Toyota or Hyundai, who know how to make good cars at reduced pricing, would buy them up.

    You know, I might as well take some time to address something here in my post. You know, it’s not JUST the unions that are killing these companies. I mean, if I am a union and I can get a lot of money from GM or Ford, why not? You have to lay a lot of the blame on the car companies themselves who actually LET themselves be controlled by the unions. Who actually signed those stupid contracts paying people $70 an hour to stand around with a clip board.

  9. Jeff Slater Says:

    You know, if the American car companies would build good, safe reliable vehicles, I would buy them!

    But they don’t. So I will stick with Honda and Toyota until they do.

  10. Robin Says:

    They are not scare tactics when you live in Michigan and have friends in unrelated auto jobs who will probably lose theirs if they tank, including me. I clean houses. If the auto companies tank I become a luxury and my business tanks and so it goes. No autoworker makes $70 a hour – that is a outright lie or urban legend if you will. If they go, it will tank the economy in the rest of the country. The fingers reach far. Be careful what you wish for.

  11. Roland Says:

    Do you really think they will go out of business? Shut their doors? If they file for BK, they will be able to reorganize and get into a better position.

    Even if they did tank and close, another company would come in and take their place and run it better.

    The problem with our country now is the mindset that a business is “too big to fail”. BS. That is how capitalism works. In fact, by “bailing” out these companies, we are hurting the economy as a whole because someone else probably has a better way to run the company which could make more money, create more jobs and opportunities but they will never get a shot because Govco sees them as not being able to fail.

    Myth? Yeah. Right. I grew up in Detroit. I have friends still up there. It’s NOT a myth. Take a look at the GM Job Bank. People getting laid off and still getting 95% of their pay. Another jobs comes up, if they don’t like it, they don’t have to take it and they STILL get paid. Yeah, that is a great way to run a company.

  12. AvaP. Says:

    I have NEVER understood those crazy “layoffs” What other business could you run while laying off a percentage of your workforce but still paying a HUGE amount of their wage and insurance???? If they cut that crap out they would be out of the red in a hurry!!! UNIONS NEED TO GO!

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