Posted on 03/29/2009 3:00:21 PM PDT by DrGop0821
Look, I've been against the auto industry bailout since the beginning.
These companies DO NOT deserve tax payer money. These bailouts are nothing but attempts at nationalization which ooze socialism.
Politicians have benefited from Unions for decades. Placating union bosses has been a windfall campaign finance tactic for a number of members of Capitol Hill. And that is the real motivation behind trying to "save" Detroit.
Indeed, the economy has seen better times but Honda, Nissan and Toyota are not panhandling on the steps of the Capitol. Somehow, they are managing to build, sell and profit from selling cars in America.
The biggest reason these automakers are in trouble is simple: It costs the Big 3 an average of $30/Labor Hour (or 60%) MORE to produce a car than competitors like Nissan, Honda and Toyota who build cars in United States plants as well. At 40 hours per week, the average UAW member makes over $150,000 annually in benefits and compensation. Does anyone else think that's a bit much to screw some tires on a car?
What about the so-called "job banks" where laid-off UAW members can collect 95% of their income by doing nothing more than watch TV and drink coffee. The Big 3 will not discuss the exact details of these job banks, citing they are not public information.
How many businesses in this country would succeed by paying 60% more than a competitor to produce a product? How many would succeed by paying people who don't produce a single asset?
Certainly, Rick Wagoner has not performed well as the head of GM, but what gives the President the right to ask a private company executive to step down?
If GM's board of directors made this decision, I would have no problem with it. The Obama Administration is yet again over-flexing its political muscle with respect to private industry.
If Congress and The White House want to put stipulations and regulations on companies receiving Federal aid, fine. But no where in the Constitution does it grant the Executive Branch this kind of control and coercion over private industry.
Tim Geithner unveiled a plan last week, designed to give Treasury Department the ability to take over financial institutions at the Secretary's choosing.
All of this continues the Obama Administration's war on Wall Street. It's a power grab to redistribute wealth, penalize the successful and establish a communistic "equality" among Americans.
Regulation = control and power.
Team "O" wants to destroy free market capitalism. There is ample proof of Obama's war on investors. Welcome to The United Socialist States of America (USSA).
POLITICO reports:
The Obama administration asked Rick Wagoner, the chairman and CEO of General Motors, to step down and he agreed, a White House official said.
The White House confirmed Wagoner was leaving at the government's behest after The Associated Press reported his immediate departure, without giving a reason.
On Monday, President Obama is to unveil his plans for the auto industry, including a response to a request for additional funds by GM and Chrysler.
Barack Hugo Hussein Obama Chavez.
It’s sick. You are right and most of them have no idea how to do basic accounting or even why. Those of them that do are the Mafia and other interested criminal conspiracies who DO keep books.
Let just all agree that Wagoner is no Alfred P. Sloan.
the $155,000 is “total compensation”; I understand it’s not take home pay, but it’s still money shelled out by the Big 3 which limits their profitablity.
You’ve fallen for the union’s fudged numbers. Ask yourself this: if their pay is comparable to non-union auto factories, why have a union at all? If you can get this level of total compensation at non-union jobs, then paying union dues is a waste of money, yes?
Anyway, not only are the union’s numbers fudged, but they do not factor in the “feather-bedding,” i.e. make-work policies. Requiring via union rules that a backup electrician always be present, that certain jobs can only be done by certain people, that extra people always be kept on hand, etc.
Funny stuff!! The companies are bankrupt and the contracts should be declared null and void.
I would, but they drive on the wrong side of the road (and they have issues with gun control, muzzie control, CO2 control, etc).
It’s not sick, it’s Tyranny.
The USA has been dumbed down enough to give them a chance.
Wait till GM files bankruptcy and sticks it to the Gov. That will cause a lot of “Special” laws to be made.
Boss 0be, LOL.
Right to speech?
“GM got the money under Bush’s plan, and I doubt that possible nationalization was even a consideration. While I don’t think they should have gotten money at all, the understanding was different, and Bambi has simply gone ahead and taken advantage of the situation to do what he wants to do anyway, which is control all private industry in the US.”
Yes, it started under Bush. And, yes, Bush did not put stipulations on them. However, GM came crawling back to the trough. Different Lord and Master. Different rules.
Time to get a Trabant. Get an original is my advice instead of a remake by GM....
“Does anyone else think that’s a bit much to screw some tires on a car?”
Of course it’s too much. Those deals were made when the big three auto makers were the only show in town and it affected all of them equally so it didn’t diminish the auto makers competition, just made the cars more expensive. It was obvious, even back then, that with lousy cars, and a blooming competition from overseas that we would end up where we are. Let the auto makers go into chapter 11, deal with the cost of labor, and try to come out of this with a car that people want to buy. The big three can produce a great car if they just put their mind to it.
Wagoner smiled after he wolfed it down... and promptly asked for seconds!
Bingo. That's what's never talked about. The absolutely unrealistic work rules that have been negotiated (read: extorted from management) by the unions are what really drives the labor costs through the roof.
Hint: Check out which party’s candidate Wagoner contributed to.
You read my mind. This is the same as Hugo Chavez’nationalization of Citgo and putting in his military thugs to take over and steal the proceeds. Same thing now with the rice industry in Venezuela. Obama is following this model very closely.
With an entourage of 500 staff, an armour-plated limousine and a fleet of decoy helicopters, America’s new president will arrive for his first visit to Britain amid huge razzmatazz on Tuesday for the G20 summit.
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