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.” (AP)
So once again, Congress is putting macro before micro – large companies and unions before individuals.
We the People is now “We the Chumps”
My last 2 cars have been GM cars – I’ve already done my part. If buying cars from GM isn’t enough, then they should go out of business.
I can’t find a job, my health insurance has skyrocketed, my IRA and savings are destroyed, and I fear that Social Security might be in immediate jeopardy. But Congress doesn’t give a damn about me. I’m just one person. The Democrats won the election and will protect their base, screw everyone else. And the Republicans are no better. What a bunch of clowns.
Just what does the bailout do?
It buys GM time. Time for what? For GM to stall until the union takes over health care payments in 2010. But $25 billion isn’t going to be enough money. It more likely will be $50 billion.
So why is GM in trouble, aside from the fact they can’t sell cars?
- GM is buying out many union workers and needs money to fund the early retirement program.
- Workers who are laid off continue to draw substantial amounts of their pay while not working.
- GM has to pay $7 billion in 2010 payment to the new health care trust fund for UAW retirees.
- GM and Ford salaries are 140% of Honda and Toyota salaries.
$25 billion won’t fix either the structural problems or the inflated employee cost.
Republicans to the Rescue
But no problem. Here come at least 2 Republicans to the rescue. Kit Bond of Missouri and George Voinovich of Ohio have both announced they support a bailout. Why? Tens of thousands of Ford and GM employees in Missouri and Ohio. I’m guessing the corn growers and Ethanol plants in Missouri and Ohio have a strong interest as well.
What Should Be Done
Bankruptcy! Either fix the problems or go away. The choice is yours GM.