Posted by
rycK on Wednesday, June 03, 2009 5:20:56 PM
The
Babbling Brooks
of the NYT Babbles about Government-Induced
Quagmires. GM will fail.
Abstract: David Brooks wanders
into his own quagmire as he analyzes the General Motors mess and concludes that
government intervention will only make the swamp a bit more dank and sticky. Thus,
in a rare instance, he wanders out of his comfort zone with the correct
conclusions about the future of this government debacle. Such deviations from
liberal ideology that cast a brown light on government programs of any genera are
atypical episodes from the NYT, so it was necessary
to explore and execute an excursion into the reasoning of this proposition in
detail. Although Brooks mechanically services some stale leftist platitudes, he
stumbles onto the most likely concluding scenario that GM will be a permanent
stain on capitalism and the taxpayers. It will fail as a company but excel as a
political vehicle for ignorance, corruption and politics. It will become a
gangrenous mass that will consume taxpayer’s monies without substance or effect
for decades to come.
As we peruse the NYT—aka the Walter Duranty Papers--an
oddity of filtered information and a
rusty turn-of-the-crank Marxian siren, we must always be prepared to suffer the
harangues of exotic and persuasive grand visions about hope along with some new progressive leftist government that will
bring glory and peace in our time. The NYT always has the proper social or
economic solution to all known problems of society and will condemn all who
would disagree with their findings. But, in a strange foray into the uncharted
wilderness of reason and analysis, and probably by an unintentional collision
with reality, our Chief Babbler David
Brooks,
seems to spread a sickly pallor over the bubbly froth and foam in dialectical
opposition to what the Old Gray Lady normally
touts. GM is not going to work out! This is a heresy so this article may be worth
reading and pondering.
We begin with a boring set of quotes cherry-picked for the occasion
and subject to the usual revisionist interpretations of the picker:
“On Jan. 21, 1988, a General Motors
executive named Elmer Johnson wrote a brave and prophetic memo. Its main point
was contained in this sentence: “We have vastly underestimated how deeply
ingrained are the organizational and cultural rigidities that hamper our ability to
execute.””The Quagmire Ahead by David Brooks
Op-Ed Columnist Published: June 1, 2009 [Emphasis is mine in
all quotes.][All quotes are from this link in this essay today unless otherwise
indicated.]
Yadda Yadda Yadda
Of course the Old Gray Lady, or what is left of
her carcass, would never be accused of having any political or “cultural rigidities” that
might interfere with its propaganda machine. They are objective and all who
disagree with their ethereal mandates are Neanderthals, bigots, Nazis or worse.
Not to bore the readers with a rummaging
exercise through the tombs of lost enterprise, we can just summarize Brooks’ conclusion at this point with
this summation:
“Over the last five decades, this company has progressively lost touch
with car buyers, especially the educated car buyers who flock to European and
Japanese brands. Over five decades, this company has tolerated labor practices that seem insane to
outsiders. Over these decades, it has tolerated bureaucratic
structures that repel top talent. It has evaded the relentless quality focus
that has helped companies like Toyota prosper.”--
David Brooks
Missing here are: the government’s
coddling of union labor at G.M., the mangling of the design process caused by
the psychotic C.A.F.E. standards, EcoNazism and other liberal adventures. Also omitted are the brands that are highly
profitable
such as the Chevy Silverado and the Cadillac Escalade. People don’t want to buy
tiny electric death traps to zip around in. They are phony anyway as we don’t
have the battery technology to make them drive decent distances.
This warped vision of creeping failure is directed toward management as if they
operated in an otherwise free market system where oppressive government was
absent or at least benign.
“As a result, G.M. has steadily lost U.S. market share, from
54 to 19 percent.”-- David Brooks
Okay, a given. Now for the quick fix with government rushing
in on their donkeys fixed up with honking kazoos and little hop and clap dances
and fresh blueprints for the ultimate green weenie urban micro EcoBuggy that
gets a thousand miles per gallon or runs only on gratuitous political wind:
“For the elemental facts about the Obama restructuring plan are these:
Bureaucratically, the plan is smart. Financially, it is tough-minded[???
ed]. But when it comes to
the corporate culture that is at the core of G.M.’s woes, the Obama approach is
strangely oblivious. The Obama plan won’t revolutionize G.M.’s corporate
culture. It could
make things worse.”-- David Brooks
The nostrum that we have, perhaps
for the first time, a “bureaucratically
smart government” plan is astonishing as it stands alone in
history. One of the words in that quote is out of place in this sentence. When
did the government ever have a successful program? How about we inquire about
welfare, Social Security, Medicare, Great Society, War on Poverty, HUD, HHS, Mexican Border, drug control,
spending, debt or some others that might be randomly selected. These cited programs
were expensive and bureaucratic swamps—not anywhere near smart. Our worthless
government cannot make government function according to promised or proffered
plan or plea. They are losers. History is clear on this point.
Then, the notion that G.M.’s culture
will not change is absurd as G.M.’s culture will metamorphose into the lap dog
and candy comedy of the government’s slightest craving. Every stooge appointed
to monitor the suburban toilet flush volumes will have some ‘input’ into design
and structure of this pile of emotional and social pulp.
Brooks rolls in a lot of debris into his analysis but here is the
essence of his part I of a VI part analysis:
[1] “But the Obama plan rides
roughshod over the current private investors and so discourages future
investors.”-- David Brooks
I think he is slithering by the
Constitutional prohibition of government operating normal corporations as they “didn’t” do with G.A.F.,
Amtrak and the phony US Postal Service, all wrecks. He omits, as if he is
living in some cloak-and-dagger scene from some rewind of an A. Conan Doyle saga, the shabby and illogical
treatment of secured debt bond holders and the colossal body of bankruptcy law
that should have given then a first place in the operating room when the smelly
carcass of GM is carved up and tossed to the howling dogs. One successful
element of propaganda creation is the omission of essential factors thus
creating disinformation
by omission and thus the illusion of
fact. Brooks is following right left along here on budget and on plan.
That is the last damn time people that can boast a brain
case with more than 6 neurons to rub together will buy bonds from some company
that might be a government takeover target. Go get it from the ChiComs or just
go out into the woods and whistle for your funding. Stuff it Washington!
Brooks now mixes labor and management and blends them into some kind
of cake mix that could be baked to make brownies or muffins at will:
[2] “Second, the Obama plan
entrenches the ancien régime. The old C.E.O. is gone, but he’s been replaced by
a veteran insider and similar executive coterie. Meanwhile, the U.A.W. has been
given a bigger leadership role. This is the union that fought for
job banks, where employees get paid for doing nothing. This is the organization
that championed retirement with full benefits at around age 50. This is not an
organization that represents fundamental cultural change.”-- David Brooks
This is a hopeless snarl of the
components of a corporation and is typical of the NYT far leftist culture. To think
that the corrupt and greedy unions have existed in some kind of leadership role is the kind of undomesticated
fiction that needs to be sprinkled with pixie dust to gain some respectability. Union featherbedding was obliquely mentioned
here, but the work rules and Wagner Act bargaining laws have forced GM to allow
unions to gut this business, or, at least the inefficient and unprofitable
part—the American unionized auto manufacturers. The idea that labor will co
rule with exempt management is a sick joke. The unions cannot hold massive
quantities of common shares and simultaneously sit on the board and sanely
discuss labor costs, profits and work rules in the same session. The Japanese,
Koreans, Germans and others seem to be doing fine without labor haunting their
boardrooms. They are the ones who took the lion’s share of business away from
the union-besotted GM wreckage that used to be a car company. Thus, they
handily bested the ancien régime. Here is an idea:
why not crapcan G.M. and let the marginal business go to the non union car
companies? They could then make their better cars at a profit sans unions and government. Everybody
wins!
Brooks is mistaken—the
régime will be some mirror of government bureaucracy.
[3] “It would be politically
suicidal for the Democrats, or whoever is in power, to pull the plug on the
company — now or ever. Therefore, the current managers can rest assured that
they never need
to fear liquidation again. There will always be federal subsidies
for their own mediocrity.”-- David Brooks
Doesn’t this comment derive from
history, as long as we are playing that little game, and doesn’t this smell
like Amtrak? [Note: created in 1971 “…officials expected that Amtrak would break even by
1974…… lost money
every year.”], The New York Central and Penn Central railroads wound
up as the tombs for the rotting rail business and they, too, were ‘too big to fail’ and union jobs were at stake
and all that. Amtrak has never made a profit and apparently never
will but this shameful excuse for a transportation service has nothing to
fear when the question of federal subsidies arises. They are wired into the tax
base like cockroaches in the Bronx. They are a permanent fixture on the political landscape.
[4] “Fourth, the Obama plan dilutes the company’s focus. Instead of thinking
obsessively about profitability and quality, G.M. will also have to meet the
administration’s environmental goals.”
Well, David bangs this one on the
noggin. And, notice, this is not a ‘business’—this is some kind of political
mission thus doomed to failure. Anybody reminded of Moscow Central Planning here? This
company will be destroyed by EcoNazi Feature Creep. Every quack idea from
windmills on the roofs to cold fusion propulsion will be bolted on every model.
[5] “Fifth, G.M.’s executives and
unions now have an incentive to see Washington as a prime revenue
center. Already, the union has
successfully lobbied to move production centers back from overseas. Already,
the company has successfully sought to restrict the import of cars that might compete
with G.M. brands. In the years ahead, G.M.’s management will have a strong
incentive to spend time in Washington, urging the company’s owner, the federal
government, to issue laws to help it against Ford and Honda.”
Brooks refrains from using the term ‘sugar daddy’ here as he
probably should. They will just be
common whores. This ‘arrangement,’ a ménage à
trois, collects expertise from well-established business operators such as
street hookers, loan sharks and soup kitchens cooks and rolls them into one
sticky mass that will adhere to any political wall or appropriations bill. The
union factions will bawl for higher and higher tariffs on foreign-made autos
and will find ways to tax the domestic competition or get special subsidies to
undermine competition by real car companies. The slogan “Buy Detroit or we will
raise your taxes” will dominate the adverting medium.
[6] A restroke of [5]: “Sixth,
the new
plan will create an ever-thickening set of relationships between G.M.’s new
owners — in government, management and unions.”
[Fini] “The end result is
that G.M. will not become more like successful car
companies. It will become less like them. The federal merger will not
accelerate the company’s viability. It will impede it. We’ve seen this before,
albeit in different context: An overconfident government throws itself into a
dysfunctional culture it doesn’t really understand. The result is quagmire.
The costs escalate. There is no exit strategy.”
This conclusion is remarkable and
probably highly predictive of what GM will look like when liberal Democrats get
into the washrooms, hospitality suites and plumbing of this company. This little story is not exactly what the NYT expects as a proper leftist
analysis of the rotting carcass of GM. It has some negative elements here that
denigrate government. Brooks has strayed from the limits of his nose
ring chain in the past and somehow his job remains apparently secure. He does a good job here.
After
paring away some of the hokum and blow from this piece, the conclusion is well
argued. G.M. will become a wanton tax
whore that will suck money from the taxpayers like a waterspout in a typhoon.
It will be come a colossal failure like Amtrak or Social Security and will be converted
into a juicy political plum for the friends and offspring of leftist supporting
types and their political bedfellows. It will be a candy store for the sick,
lame and lazy and will be celebrated as a masterpiece in governance around
socialist campfires.
This is why we can
never again buy a car from Detroit.
rycK
Comments
to: ryckki@gmail.com
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rycK on Saturday, February 16, 2008 10:37:49 AM
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Tuesday, January 08, 2008 10:36 AM
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The
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The
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http://en.wikipedia.org/wiki/Amtrak#Subsidized_competition