Illusional Delusion

Six Myths about the Big Three

Mister Jimmy,
Frankly, they have an inferior line of products if not all inferior products, made more unsustainable by the amount of liabilities they have for non-productive workforce (eg. Job Bank Program). That is not to say that they should be fed to the wolves along with all of their employees. So far, there is nothing that would let them wriggle out of their more expensive contracts other than Chapter 11, and you know what that is.

Unless the Congress charter something specifically to let them restructure the payroll as well, the three autos won't have much breathing rooming even with the bailout, frankly I suspect not even early 2009 end, so rather than feed them to the wolves, I would like to think of it as forced amputation.

I would agree that many articles are cold on bailing out the autos, but clearly this article is not one of them. Also, what gets negative publicity about union pay is more of the legacy contracts. I have read enough articles to realise that current contracts at the autos are no longer that attractive, but that doesn't mean they are can run from their earlier "covered for life" obligation. That is an area they need to restructure. I'm not sure if that idea is sustainable but cutting it might flip the coin of fair work benefits the other way.

I kind of forgot the CEO tenure flight expenses. It is interesting to remember that the ones getting stoned are usually the ones that are solving the problem, other than the GM case. Still, I'm surprised they failed to add lip service on the "selling their corporate planes" question when it was a politically correct answer. Goes to show how much power the media has and is abusing for tv ratings.

Should We Really Bail Out the Big Three Automakers with $73.20 Per Hour Labor?

Frankly, I think they are at the certainty of collapse, even with the bailout. The bailout will not be able to save the jobs we really want to save unless we completely nationalize the 3 automakers and restructure the 3 to a point where the 3 automakers can compete in both quality and sustainability against great carmakers like honda and toyota.

Its easy to bully the meek who will give concessions or bailouts like the quote from "House MD", what selfish person like those high salaried executives from financials, autos and whatever mores would not take advantage of it? They are ever ready to cut jobs regardless of how much taxpayer money they get and how much the autoworker is willing to reduce his pay demands.

Either way, it would be easier to let the 3 automakers fail. Giving them more money and time on the medical bypass is only slowing the closure of the factories and job cuts that the bailout is supposed to avoid. It is more important to think of what to do if they fail rather than think what to do to prevent them from failing. You will encourage your child to get up on his feet himself, so why should big monies be given preferential treatment?

btw, many people have had experience of meeting bill days after losing their job, so rather than take the "let them fail" solution too personally, think of how people should live for the next thirty years. because if they don't want to change, they will live the rest of their lives the same way they lived the past years of their life, accruing more debt than they can pay off. just my $0.02 worth of thoughts.

Should We Really Bail Out the Big Three Automakers with $73.20 Per Hour Labor?

Simply put. The 3 automaker have got away far too long for their mistakes. Indeed they attract unskilled workers more, but based on an unfair advantage of having to be saved more than once.

If no one wants to pay CEOs for their blunders, who wants to buy cars they don't value. The problem is simply that the 3 carmakers are not making quality cars.

Let them work to save themselves or fail.