The Big Three

[SteveLCetc]

Reverberating all over the web, but hat tip to Shawn.

 

[John Galt]

The fact of the matter is that we cannot let the auto industry fail. If we do, then we will also all fail.

bullfudge... One million auto related employees out of a population of 300 million... just a drop in the bucket. A few years ago a number of airlines filed bankruptcy, reorganized, and the survivors came out of it stronger, with less union featherbedding, leaner, and profitable. The airline industry didn't fail, the country didn't fail, the sky did not fall, toads did not rain from the heavens, chickens continued to lay eggs and the cows still gave milk. The greedy auto barons are trying to hold the country hostage to save their pensions and their golden parachutes, and the unions are right in there too because they've bought into the same entitlement game. What a load of horse pucky.

Bailout dead, automakers in search of a lifeline

By Associated Press Writers Ken Thomas And Julie Hirschfeld Davis, Associated Press Writers – 11 Dec 08

WASHINGTON – Their efforts in Congress squashed, U.S. automakers are depending upon a reluctant White House to quickly provide a multibillion lifeline to help them avoid imminent collapse.

General Motors Corp. and Chrysler LLC, which have said they could run out of cash within weeks, have few options left after the dramatic defeat in the Senate of a $14 billion bailout for the domestic auto industry.

Its demise late Thursday prompted immediate calls from lawmakers in both parties for the Bush administration to tap into the $700 billion Wall Street bailout to rescue the beleaguered auto industry. The bill failed after talks broke down over the refusal of the United Auto Workers union to meet Republican demands for aggressive wage reductions.

The Senate rejected the bailout 52-35 on a procedural vote — well short of the 60 required — after the talks fell apart.

 

[SteveLCetc]

The problem with the big three is that they really do build $hitty cars, or else they wouldn't be in this position (again). Bailing them out gives the poster credibility, like it or not. I'm not sure how their retirement programs are set up, but if their union leadership really cared they would make it incumbent on their workers to build quality products.

 

[Ruadhrigh]

my 2 cents.

since when is the government responsible for "private market?" Isn't the risk of owning a business losing your business? The big three are not the government's responsibility, they gambled and they lost. Yes it sucks for the families that are involved, but the jobs and investments lost in Enron were also unfortunate. Why didn't they get a bailout? Maybe I have shown my ignorance but how do we differentiate this situation from socialism? I thought America's ideology was based on capitalism?



standby for edit/delete

 

[pappy]

Where does one draw the line?

Onur, why did you delete your post? While I reserve the right to disagree with anything said here, you can certainly say it.

I don't care where we draw the line, but it MUST be drawn. And now is a good time.

 

[DanS HJ-45]

A few years ago a number of airlines filed bankruptcy, reorganized, and the survivors came out of it stronger, with less union featherbedding, leaner, and profitable.

As an airline industry lackey (pilot), I'm here to tell you that the ONLY thing to come out of the 2001 reorganizations was that the overall compensation packages for employees have plummeted (to unsustainably LOW levels--see the pilot shortage of a year ago, which was only "saved" by pushing the retirement age to 65 years old), while the companies have become LESS friendly to consumers, LESS reliable, and generally worse run than before.

Also, the airline executives got PAID, and the arbitration system the airlines are forced to use (the RLA) has become nothing more than a club with which to extract management's every demand. (hint: management's demands have NOTHING to do with lowered prices or better service)

Back to the big 3....

I don't want them to get bailed out. But I don't have a problem helping them out a little. Specifically, a little loan here, for some concrete benefits for the American public. More efficient cars, better quality vehicles, lowered executive compensation (or the outright sacking of the morons responsible), less outsourcing, etc.... could all be tied to the bailout and wouldn't give me heartburn. But to simply give them money because "they are too big to fail" is the best reason to let them die the death they've been working on for the past couple of decades.

Oh, and the IAW has got to get real. I'm not about to subsidize their retirees benefits with my paycheck, when they are substantially better than any healthcare or retirement benefits that I will EVER see.

Dan