Posted by
rycK on Sunday, November 16, 2008 3:45:16 PM
A Translation of the
Bailout Plan for Detroit: Bigger Government, Bigger Unions and
Cars Designed by EcoNazis
When we
hear the speeches and promises and begging from the leftists that we have
mistakenly placed in power in Washington, we need some translation for
their words. In the initial phase of an
economic catastrophe that may become the world’s biggest depression the lefties
are telling us that we need to bail out the Big Three in Detroit. Here are some
of their comments and mine follow:
Recent News:
“WASHINGTON – House
Speaker Nancy Pelosi said Saturday the House would provide aid to the ailing U.S.
auto industry, requiring that the industry meet new fuel-efficiency standards, produce advanced vehicles and restructure "to ensure their long-term economic viability." “--Pelosi outlines aid package for US automakers By Ken
Thomas, AP– Sat Nov 15 [Emphasis is mine in all quotes.]
Let us think about the bailout for a minute
and ask the following question: Why are we doing this? You might skip the
lengthy quotes and read my analysis at the bottom of this essay and then check
the actual wording to check my thinking on the matter. We already have successful automakers that do
not need a bailout so why would we subsidize failure?
Auto
wages:
“Toyota Motor Corp. gave
workers at its largest U.S. plant bonuses of
$6,000 to $8,000, boosting the average pay at the Georgetown, KY, plant to the
equivalent of $30 an hour. That compares with a $27 hourly average for UAW
workers, most of whom did not receive profit-sharing checks last year”--
UAW Losing Pay Edge:
Foreign Automakers' Bonuses Boost Wages in U.S. Plants as Detroit Car Companies
Struggle February 1, 2007
Auto wages as viewed from the far-left Nation:
“Hourly
wages for union and nonunion autoworkers in fact have been roughly comparable for some time, although the UAW's
vaunted benefits packages have brought total compensation for members well
above that of their nonunion peers. By saving as much as $30 an hour on benefits, foreign
automakers have been able to dampen interest in the union by paying wages well
above the regional standard in places like Canton, Mississippi, where Nissan workers
can make more than double the state average. The overall effect throughout the
industry is downward pressure on earnings, as the Big Three demand concessions
to remain competitive on labor costs, while the UAW mortgages what remains of
the union advantage for dubious promises of job security.”-- UAW R.I.P.? by Max Fraser This article appeared in the November 5, 2007 edition of The Nation. October 18, 2007
“With American automakers
tanking and taking their membership with them, the UAW is trying to rebound by
targeting the North American factories of Toyota and Honda. But the transplants have carefully avoided building
plants in union strongholds, and have thus far held off attempts to unionize
their American factories. And no wonder. Although the UAW has done well by its
members over the years, its colossal pension
liabilities and uncompetitive approach to wages have been an undeniable factor
in the decline of Detroit.”-- UAW Membership
Drops To Post WWII Low By Edward
Niedermeyer March 31, 2008 [Emphasis is mine in
all quotes.]
Analysis for the Above:
Factors:
[1] We have two different manufacturing clusters here and they
are run very differently, have different management, have vastly different
business successes and can be divided confidently into two main groups: union and non union.
[2] When we compare the wages by adjusting for benefits, local tax
factors from Detroit, the union costs to the non union plants we find that the pay is nearly equal when you add in bonuses.
[3] We know the new plants that are non union have judiciously
chosen geographic regions that are not union strongholds and do not have politicians
hanging onto the apron strings of the unions. We know that they are profitable.
[4] Democrats, the sponsors of the unions for decades are
all for a bailout at almost any cost.
[5] The bailout will include concessions to the EcoNazis.environmental activists and others.
[6] The design features will be dictated by leftist political activists.
[7] The government will have close supervision of the operation.
Conclusion:
This is politics as usual with the difference that the liberals
now have precedence to divert your tax liability to one of their pet special
interests. Here, we see two types of auto makers with union and non union
attributes and, glaringly, but not surprisingly, we find the union flavor
has failed. This is not unusual.
Not only will the liberals attempt to prop up the failed Big
Three, but they will legislate in a manner that the non union auto
manufacturers will be at a disadvantage in terms of new design and
performance criteria. The other leftist special interests will get to have their
prejudices incorporated into the design specs and will thus indirectly affect
the successful competition.
The net effect is that the government will subsidize and
effectively nationalize a failing industry that has been destroyed by unions
like the rail roads and some airlines and will burden buyers with political
nostrums on the environment. The government will attempt to restructure the
auto industry in a valiant attempt to match what we already have in the
nonunion plants. They will use
truckloads of your tax money to do this. Even if they were able to match the
performance of Toyota or Honda they would have spend the money for nothing. The existing non
union auto plants can buy up assets from the bankrupt Big Three and absorb the
products now heading for Detroit since they will garner the new business from the failed ones. The
non union plants can make excellent cars even if the Big Three go down. They
can probably make better cars.
The government wants to make little teeny weenie cars that will
have horrendous costs and will be very expensive to drive and maintain.
“Government is not the
solution to our problems—government is the problem.” –Ronald Reagan.
It is a grave
mistake to let the government subsidize failure and particularly failure from
one of their most-dedicated supplicants.
rycK
Comments:
ryckki@gmail.com