The big three U.S. automakers flew into Washington last week on their private corporate jets wasting thousands of dollars to come to Washington begging for U.S. taxpayers to bail them out of the financial mess they've gotten themselves into. While government regulations have made life somewhat difficult for the "Big Three" in their environmental regulation policies, the high cost of building the American automobile is mainly due to the high wages and benefits the United Autoworkers Union has squeezed from the big three. The non-unionized workers in auto plants in other regions of the country are doing noticeably better in this troubled economy because the high cost of union salaries and benefits are not rolled into the cost of the vehicles produced.
3 comments:
I find it interesting that unions, while created with the purpose of improving the financial and living conditions of their members, may cause the downfall of an industry and leave thousands of workers unemployed, ultimately undermining the original purpose for which unions were created.
Going to Washington in private jet to ask for a bailout is not a good look. The automakers should be bailed out because thousands of jobs are at stake and the unemployment rate will just get higher. If AIG can get more bailout money, then why can't the automakers get at least something? If they don't get bailed out, then I can see the automakers filing for a Chapter 7 Bankruptcy in order to buy them some time so they they can get things together.
Even though I am skeptical about giving money to the big three I also have my reserves about letting them die out. If american automotive companies die out then it will do two things, create a loss of thousands of jobs in America and leave room for expansion for foreign companies. And in order to rebuild a weaker American automotive industry will more than likely have no chance of competing with the foreign companies who by that time will have basically domination over the market. So in all honesty I think the government should in fact keep the companies from failing but with strict regulation.
Post a Comment