a few words from my friend Walter E. Williams...a condensed version for your reading pleasure...

Let's not allow Congress and members of the bailout parade panic us into allowing them to do things, as was done in the 1930s, that would convert a mild economic downturn into a true calamity. Right now the Big Three auto companies, and their unions, are asking Congress for a $25 billion bailout to avoid bankruptcy. Let's think about that a bit.
What happens when a company goes bankrupt? One thing that does not happen is their productive assets go poof and disappear into thin air. In other words, if GM goes bankrupt, the assembly lines, robots, buildings and other tools don't evaporate. What bankruptcy means is the title to those assets change. People who think they can manage those assets better purchase them.
A large part of the problem is the Big Three's cozy relationship with the United Auto Workers union (UAW). GM has a $73 hourly wage cost including benefits and overtime. Toyota has five major assembly plants in the U.S. Its hourly wage cost plus benefits is $48. It doesn't take rocket science to figure out which company will be at a competitive disadvantage. Then there's the "jobs bank" feature of the UAW contract where workers who are laid off workers get 95 percent of their base pay and all their benefits. Right now there's a two-year limit but in the past workers could stay in the "jobs bank" forever unless they turned down two job offers within 50 miles of their factory. At one time job bank membership exceeded 7,000 "workers." GM, Ford and Chrysler face other problems that range from poor corporate management and marketing, not to mention costly government regulations.
Two vital marketplace signals are the profits that come with success and the losses that come with failure. When these two signals are not allowed to freely function, markets operate less efficiently. To be successful a business must take in enough revenue not only to cover wages, rents and interest but profits as well. In order to accomplish that feat executives must not only satisfy customers but they must do it in a manner that efficiently utilizes all of their resources. If they fail to cover costs, it means that resources are not being used efficiently and/or consumers don't value the good being produced relative to some other alternative. When a firm routinely fails to turn a profit, there are bankruptcy pressures. The firm's resources, workers, building and capital become available to someone else who might put them to better use. When government steps in with a bailout, it enables executives to continue mismanaging resources.
Congressmen and federal bureaucrats, including those at the Federal Reserve Board, don't know anymore about the automobile business than they know about the banking and financial businesses that they've turned into a mess. Just look at the idiotic focus of congressmen when the three auto company chief executives appeared before them. They questioned whether the executives should have driven to Congress rather than flown in on corporate jets. They focused on executive pay, which is a tiny fraction of costs compared to $73 hourly compensation to 250,000 autoworkers. The belief that Congress poses the major threat to our liberty and well-being is why the founders gave them limited enumerated powers. To our detriment, today's Americans have given them unlimited powers.

The Union has been giving back for years. I dont know about the $73 hour crap but will bet the biggest expenditure is Health care.

The guy who wrote this should be run out of town with pitch forks. Imagine the economic tsunami if the big three go under. It will be a depresion then.

why does the (overpaid) auto worker have to make concessions

but

the (overpaid) banker do not


and how about


the politicians (also overpaid) why not have them make some concessions as well



hypocrites one and all they are

If the UAW worked for free it would reduce the cost of a car by 10%. It seems to me that the elites have a plan for the middle class and that is to disenpower them and have them work hand to mouth and be so poor as to not have the time or energy to focus on the future or politics. They do not wish us to afford to send our kids to collage and make something of themselves. Its just another step in the ladder of a two class society of super rich and hand to mouth poor.

Take it from someone that is living this!

The only individuals in the state of michigan that are working is auto industry and jobs that come secondary to being new the plants. (And universities which will always function) If the auto industry colapses, so will the rest of michigan's economy! It will be the straw that KILLS the camel.


Now with that being said. I have said for years! that the uaw has been greedy. TAKE TAKE TAKE. And look at where it has gotten them. UAW is about ready to be out of a job too!

I am NOT discounting the benefits and good that unions provide, however, there are a lot of greedy individuals among the ranks of the uaw.

As soon as globization was in sight, concession should have been made in order to compete.

But now in michigan, I wouldn't be surprized if within the state we're on the line of depression and it won't take much to put us over!

Bailout, nah... auto industry is asking for loans... big difference for what was given on wallstreet.

General Motors and Toyota sold roughly the same number of cars last year. Toyota turned of profit of several billion dollars and GM had a loss of several billion dollars

I wonder what the difference is?

GREED!

and...when the cost of producing a car...exceeds it's resale value...it's time to turn out the lights...no business can survive...

in 95 i was going to buy a new impala

i went in told them how i wanted it

everything i wanted was an available option

i told them i do not care if it takes 6 months to a year to get it

i wanted it dark adriatic blue with cherry leather interior

they said gm would not do that

i went to at least 5 dealers and got the same story

well if they want to be that way i could care less if they go under --- if gm goes down ford and chrysler will get more business

i will never buy a new car from any gm company

maybe they should start giving the customer what they want if it is available as a standard option to begin with

CEO pay and legacy costs. GM is an old company with alot of retirees.

globalization was a political decision by OUR government. We have gained nothing and lost everything.

globization was bound to happen as travel and communication improved. globalization began with the first trip across land from europe to asia.

yes t is an old company

almost as old as ford

hhhmmmmmmmmmmmmm

read up on some history and study the trade agreements it was never "free trade" every Country protected certain esential industries. We americans have been exposed and expected to compete with slave labor. Its a mad race to the bottem to see who will work for the least. Enjoy your downward slide.

I know someone who worked for a company that had a contract with GM. The Union does NOTHING. He got fired for NO REASON while others who used racial slurs were brought right back to work. He paid the Union dues and was told again and again that the Union "was working on it". All the Union does is cost people jobs just look at the situation GM is about to go under and the Union REFUSES to even negotiate even after the CEOs agreed to take a pay cut as well. The president of the company said he would work for ONE FRIGGIN DOLLAR! But the UAW won't budge I hope the Government does some restructuring and gets rid of the Union the Union hasn't done any one any good for a long time. The Union at the plant in Indiana took the dues that the workers paid and bought computers with it and then told everyone that there would be no christmas party because there were no funds. Then the UAW was supposedly collecting cash for an injured worker. When the workers asked about how much cash they raised the answer was barely $20. My friend gave them $30 by himself. Now tell me where all that money went DOWN WITH THE UAW!!!! GREEDY PEOPLE.

Instead of a bailout for Wall Street that money should have gone to the people and that would have kick started the econonmy pretty good.

post number three for you and its a doozy. I suppose I would need a little more proof to swallow that fish tail.

The union is not the cause of the auto collapse. They have been making concessions for 20 years. The auto manufacters change they way they did bussiness in the early 90s cutting jobs and "Farming" out part manufacturing to smaller less paying factories. So there is no way to lay the blame on the union!!!

Its funny they just handed over trillions to the bankers who created this mess along with the support of the republicans and when a hard working auto company needs a little help its time to cut the throat of the working man. Its class warfare plain and simple. unfortunatly some in our own class who benefit the most from what the Unions have done would rather defend the blue bloods who profit from our sweat.

lil slow on that one