Here comes yet ANOTHER bailout BOHICA.
We (taxpayers) loaned US automakers a mere $25 BILLION in September, and they are now looking for another $50 BILLION. What will it be in 2 MORE months-$100 billion?
Why are we doing this? The rationale seems to be that if GM, Ford, and/or Chrysler were to go out of business, it would collapse the economy.
But I would argue that propping them up will make things worse, and merely postpone the inevitable.
The UAW, in it’s infinite greed, has continued to take everything they can get. For every 1 hourly UAW employee, there are 4 retirees eligible for health care benefits. Also, UAW employees, on average, earn $25 more per hour in total compensation than Toyota/Honda workers. Unreasonably high compensation and unlimited health care benefits for retirees have put these companies in dire financial straits, and yet we are expected to prolong the agony.
But it doesn’t take a rocket scientist to figure out what is going on here. The Democrats are strongly supporting this next bailout. And why?
“Big Labor” helped BHO get elected (along with many other Dems in various offices), and it’s payback time. But this typical anti-capitalist stance will only work for so long. By using tax revenues to continue to prop up enterprises that should be bankrupt, the economy as a whole will continue a steeper downturn, to the point that the revenues will dry up, and expenditures in other areas will skyrocket, and more and more people are out of work.
And yet, as pointed out here, would Congress prop up Wal Mart with loans if needed? I think not.
So get used to it, and expect that UAW-controlled companies will continue to come to us for more and more money.