The American Spectator

El Rey| 5.15.09 @ 7:09AM

"GM is broke because American consumers are broke."

No. General Motors is broke because, for over forty years or so, management never have the backbone to stand up to the UAW and thus allowed this parasitic organization to eat the company alive from within.

Melvin| 5.15.09 @ 7:21AM

So this surprises us!? I'm not going to continue to beat this dead horse. But the horses asses we should be beating up are up in the glass tower in Detroit and Washington D.C.
We just been hosed people, and I can hear the political snickering all the way down here in NC.
The American worker, has just been sold out by our government and GM to a $3.00 an hour Chinese Communists. Thomas Jefferson would be so proud.
It is getting to the point that I would love to throttle a GM executive and politician. (figuratively speaking.)

Rocco| 5.15.09 @ 7:39AM

El Rey: True enough. I witnessed the same with the steel industry in the 1970's. Melvin, your reaction is a start. Why we as a people are not up in arms about this is astounding. Horses asses....you're too much of a gentleman! LOL.

John Galt| 5.15.09 @ 7:53AM

The unions get paid for their votes with taxpayer dollars while the Chinese will actually build the cars. Now that the O has demonstrated that the dealer's contracts were not worth the paper they were printed on, who but an Obamunist Kool-Ade drinker would buy a GMC/Chrysler? The warranty is printed on the same kind of disposable paper.

Curly Smith| 5.15.09 @ 8:19AM

You'd be better to say "There is in fact nothing "free" about "trade" with unfree companies like GM, Chrysler and Ford". The primary reason the Big 3 will increase manufacturing in other countries is to escape the high labor costs that have destroyed their industry. GM had a choice, it could drastically alter the contracts with the UAW and keep the manufacturing in the US or it could reposition more manufacturing in China. Both serve to reduce the overall labor costs but only one will provide American jobs for the next generation, which is now saddled with mountains of debt that it can never hope to repay by working at jobs that don't exist. Worst of all, billions are stolen from the taxpayers for a deal that does nothing to alter the inherent long-term bankruptcy of the industry. How many UAW members does it take to *not* build a car?

John| 5.15.09 @ 8:20AM

All this to save the UAW. Chrysler could have been put into an orderly, legal, and ethical Chap 11 Bankruptcy in December. What would have come out is most probably a lean and clear from union contracts company with a chance to survive this industry wide mess.

GM should have gone through the same process, BACK IN DECEMBER, union contracts should have been vitiated by a valid, legal, bankruptcy court, the company re-organized, assets sold off that made no more sense... and plant locations moved to right to work states where the company could employ good workers at a reasonable market wage with reasonable market benefits.

What has transpired in the the last six months has been nothing sort of insanity. It has bordered on illegal, if not crossed that line entirely, and is wholly in the the name of the Democrat Union Power Block.

1. The entire automobile industry is reeling right now. Toyota and Nissan are losing a bundle, too. (even with their robot made pregnant skates and doofy hybrid cars.. - for Toyota..) I bet Honda comes down with some poor numbers soon, too.

2. The chief problem is STILL the US Consumer who wants a Cadillac Escalade with all the trimmings in his garage. He wants it to sip gasoline at insanely tiny amounts (the laws of physics, thermodynamics, and mechanical advantage not withstanding), and he wants to pay as close to nothing as he can for it.

3. The government wants perpetual motion, becuase the government is now run by a combination of Eco-whackos, Statists, and blind bureaucrats (none of whom have a care about getting a family of five or six or more to church on Sunday.)

We end up with a fundamental problem where there are too many mass market automobile manufacturers chasing a static market with a slow turn-over in demand. Something has to give somewhere. There is not enough profit margin anywhere in the industry to maintain a viable corporation.

Of course the City based Bureaucrats and their Big City Government has now declared all out war on the suburbs, exurbs, and people living in any sort of flyover country.

The Founders feared, and tried to ablate the potential political might of the big cities. That effort has finally failed. This nation is ruled by its big cities (New York -which includes the "Megalopolis" between Boston and Philadelphia - Los Angeles, San Francisco and Chicago.) The other states who are subjected to the cancer of "blue hole" cities are suffering similar fates.

The new city dweller is not a property owner. He doesn't need a car, and frankly if he owns one it's for show.

So, the number of automobile manufacturers will wither. Most will die off... since they can't produce a marketable product at any price.

The Blue Hole dwellers really don't need them.

r/John

Tom| 5.15.09 @ 8:28AM

1945 WWII is over . The vets wanted homes and cars. The deal was give the union what they want to avoid strikes. The CEO's had to give stockholders huge profits and of course we wanted more free entitlements from the govt. = higher taxes. Moral of the story: Mankind is mankinds worse enemy. It takes the form of wanting power and money.
Rocco, Not only did I witness it, I was a steelworker and worked for four companies that ended up closed.......for good. The people, younger generation, are not fed up because of the dumbing down of schools and the indocturnation of our colleges.

Roy| 5.15.09 @ 9:12AM

I am not fed up because I know that protectionism is a dead end street.

The fundamental goal here is for the UAW to take our money. They cannot do this by making cars that free people will freely choose to buy - since they want $40 to do what others will do for $4. So, they have the government forcibly take our money and hand it to GM, forcibly prevent GM from hiring cheaper labor, and forcibly prevent us from buying anybody else's cars. It would be more efficient for the government to just enact a special "UAW tax" where your money is just directly handed to the UAW and we can forget all this folderol about them "working".

Mr. Peters has a point about China, but other than that this is just standard issue protectionism. Anybody who thinks US colleges are indoctrinating people into free trade clearly has not been near one in the recent past - in fact they indoctrinate you into the belief that free trade is "oppressing" the poor third world workers because they only go from a dollar a day to $3 an hour instead of $6 - a mere 25 fold increase in pay rather than the 50 fold they apparently have a moral right to.

Who benefits from free trade? Consumers, who get cheaper products; other employees, who get paid out of a larger basket than would otherwise exist; foreign workers, who are so much better off it's not even funny; and US foreign policy, which benefits from trade ties.

Who loses? The UAW. I'm not seeing a huge downside here.

Son Of Sam| 5.15.09 @ 9:17AM

GM is flat broke for the same reason the New York Times is going down in flames: they are both hidebound dinosaurs who arrogantly expected their customers to keep coming back for more no matter how many times they got pimp slapped with crappy cars or propaganda masquerading as news. GM should NEVER have gotten taxpayer money, and the NYT should not be allowed to re-organize as a "non-profit" -- an idea I've heard bandied about for several weeks now.
The fact is, welfare is welfare, whether it goes to illegal aliens in the inner cities or corporate fatcats who can no longer compete. I'm THROUGH having to pay for anyone to get to use the safety net as a hammock.

Stay strong until freedom dawns
Son Of Sam
http://www.geocities.com/samadamssos

Jack| 5.15.09 @ 9:40AM

Let's just see what the unions say about all of this. If they are silent-the fix is in. If they protest-they are doomed.

Michael L. Hauschild| 5.15.09 @ 10:02AM

Dinah Shore sure is pretty.
http://www.youtube.com/watch?v=KGZvQoPxhNs

Roger Daniels| 5.15.09 @ 10:37AM

I'm buying Fords now. At least they make their own decisions. GM and Chrysler are wards of the US, and even European and Japanese brands get huge input from the government.

Pete| 5.15.09 @ 10:54AM

I agree with Roger. IF I ever buy an American car again, it will be a Ford and nothing else.

El Rey| 5.15.09 @ 11:41AM

I switched to Hondas in the 1980 and never regretted it.

Rocco| 5.15.09 @ 11:47AM

Tom, you are right about the younger generation. I see it now when I return to PA. Back in the early 1970s, I was a steelworker in western PA while in college, USW Local 1174, now defunct. As one retired Marine who had returned home told me (another retired Marine) while running, the major growth industries in many of those old steel towns is: corrections, drugs and welfare. Sad, sad, sad!!!

saltyrover| 5.15.09 @ 4:24PM

Funny thing, I bought a Nissan because my friends and family are working at some well paying non-union jobs in a Right-to-Work state. I wanted to buy a vehicle that was American made by American workers and it turned out to be a Nissan.

ben| 5.15.09 @ 5:07PM

Like it or not we ARE in a world economy. This current recession proves it. Products are made, bought and sold all over the world regardless of where the companies are based. Free Trade is a boon for all. The undeveloped countries get jobs, commerce and cash to become developed. It's much better to develop them through trade and commerce than handouts and welfare. These newly opened markets create more consumers for the products made by the various companies - they sell more products and make more money which leads lower prices and more hirings. The problem as with everything else is the Federal Government's attempts to regulate every aspect of American life, habits and freedoms, for our own good of coarse. They force the car companies to meet safety and mileage standards instead of letting the consumers mandate that ourselves through our purchases. The companies now answer to the government instead of their clients, which always leads to the extinction of said companies. The safety regulations make the cars heavier and more expensive. the fuel mileage regulations coupled with the safety regulations make the mileage minimums harder to reach driving the prices up more. How many people drive older beat up cars simply because they can't afford a newer one? If we were to instead lower our corporate taxes to a competetive rate and eliminate double jeopardy taxation for internationals, more companies will choose to do business in America. We are the largest, wealthiest consumer market in the world. Every business wants to do business with us. When we eliminate the incentives for companies to move their manufacturing elsewhere, they will have no reason to leave. To build a new plant, hire and train new workers, jump into new production, parts and distribution contracts costs a lot of money not to mention the transport of products over seas and customs hassles. The reasons companies are willing to move their production at great expense to them is because that's the only way they can stay competetive with other internationals and thus stay in business. The problem is not the Unions or the CEOs, it's the bloated federal governmnet. The only reason lobbyists have so much power now is because all of our commerce laws and regulations are being made by the fed. Only the largest companies have the wealth and resources to compete at the national level. The security of the people, protection of lives, rights and liberties, foreign affairs, economic oversight (not regulation) and the mediation of interstate disputes is ALL the federal governmnet should be doing. Everything else should go to the states. We were once a republic where States had most of the power and the Fed simply supervised. our congress had 2 houses-1 that represented the State's interests and 1 that represented the people. The day we made Senators a popularly elected position instead of a State appointed one, our Republic died and a Democracy was born. This was the first step in removing State power and concentrating all power with the fed. We now look to the fed for help, for answers and for guidance rather to ourselves, communities and local leadership. As the Fed grows our voices, our power, our representation and our rights all recede.

Pat| 5.15.09 @ 6:36PM

John, you have a pretty good bead on this. This author, Peters, on the other hand, is having either a psychotic episode or an hysterical fit.

GM is broke because America is broke? Since they've steadily lost money, and we're talking tens of billions over the past 5 years, that might have had a little bit more to do with them being broke than the current savings account balance of Joe the Plumber.

Here's an alternate solution. Why don't we protect the union guys in Detroit at all costs. Let's tell GM's current bondholders to kiss off and let's completely trash the market for trading GM's stock. Let's "loan" GM taxpayer money, we're thinking billions of dollars here and then cancel the debt and accept worthless shares of stock in payback. Let's put GM on permanent financial life support since private lenders aren't likely to be fooled again. Wait a sec, we're already doing that, aren't we?

Hey, it isn't 1965 anymore Peters, it's over, American car companies will become smaller and will learn to be much more nimble in the future. Congress will learn to be more sympathetic since you can't get campaign contribution blood out of a rock - and there are other, healthier industries Congress can squeeze some payola from by soliciting protection money to avoid "special laws".

And all the ranting by grown-up teenagers with vintage Plymouth Road Runners in their garages won't change the fact this entire fiasco was political - the Dems owed the UAW big time and debts must be paid. It's our President and our Congress we taxpayers need to fear, the Chinese aren't the real threat here.

Seo Executive| 5.15.09 @ 9:45PM

Steny Cantor is a snake of a politician. Dude can’t keep his house in order, is usually out of order and has a real problem with understanding English Titles.

Immigration legislation would correct this, no doubt.

Ted Lang| 5.16.09 @ 12:18AM

John, to support your first post regarding Big City Government war on the rest of us, McCain won 2,244 counties out of 3,114 total. McCain won more counties within 34 of 51 states and the District of Columbia.

bluecollarbytes| 5.16.09 @ 7:30AM

Nice to see someone {conservative} take on the untouchable term: "Free Trade". "Free Trade"- barely explained and rationalized, is used cloak every negative associated with its implementation. It's proponents demand complete adherence, implying endless boundless goodness and light to the citizenry as long as we stick with it... regardless of what it actually Looks like in real world practice.

Was there not a 'third' way somewhere between a Buchanan and a Bush?

GreginOkinawa| 5.16.09 @ 9:28AM

bluecollarbytes--

The problem is this: When U.S. companies have to compete against companies using slave labor (China), is it still called "Free" Trade?

Richard Baker| 5.16.09 @ 10:40AM

To El Rey:
Agree with your take on the parasitic unions.
However,my biggest question has always been: Where are the Americans in all this? Is it going to become a political act of bravery to celebrate the 4th of July? I've said for years that a shooting Revolution is imminent because of the encroachments of government and the millions who give in to this tyranny. I'm from Virginia and our state flag says, Sic Semper Tyrannis. It's becoming time to emulate the Founding Fathers. I hope it doesn't come to this but we are at a dangerous crossroads. Keep your powder dry!

Curly Smith| 5.16.09 @ 12:11PM

I disagree a bit with Greg about the Chinese slaves. The problem isn't the Chinese as much as it is the unions. If an industry is to survive then it must evolve but unions are the antithesis of Industrial Evolution. We can, without any doubt, compete with the Chinese slaves because of our creativity, ingenuity and work ethic but labor unions oppose creativity, ingenuity and the work ethic and force the industries to remain as they were 30 years ago. Without the unions, the companies would slowly evolve. With the unions, the industry catastrophically fails under the weight of changes not taken.

The plants built in foreign countries, whether they're steel mills or car plants, are generally of newer design than those in the US and there's absolutely no way that the unionized status quo can compete with a new, more efficient plant staffed with lower cost employees. But, an even newer more efficient plant staffed with high cost, but extremely effective employees, will generally win the competition. The problem doesn't lie with the union membership but with the leadership of the union, the company, and the federal government which all conspire to maintain an adversarial status quo in a changing world.

bobc| 5.16.09 @ 10:27PM

I have worked for 5 yrs. fighting outsourcing and illegal immigration. Republicans need to get it in their head that Free trade has hurt workers, and Dems better get it in their heads that illegal immigration has cost tax payers billions each year.

Amnesty is not the answer. They will be able to bring in their extended families, more on entitlement programs and more to take our jobs.

Common sense has to be somewhere in D.C.!

Felix| 5.16.09 @ 10:37PM

The entire economic downturn was caused by government actions both here and abroad. First governments which control 90% of the oil in the world manipulated the supply to increase prices to unsustainable levels helping to create a recession. The US government forced banks to make bad loans. The US government allowed the unions to extort enormous sums from the auto companies, then turned around and opened the floodgates to cars made with cheaper labor. The Chinese flooded the worldwide labor market with a billion people when they decided that it made the communist leaders wealthier if they could use this source of cheap labor to attract business and take their cut. None of these things are related to natural market conditions. The shock to the world economy from all these sources has just recently reached critical mass. The perfect economic storm.

Plastic water meters| 5.18.09 @ 2:55AM

I agree with Roger.

Tony in Central PA| 5.18.09 @ 4:26PM

With as many GM and Chrysler vehicles as there are on the road, its hard to argue that their demise can be anything other than a failed business model. When you've got two retirees for every active employee, it doesn't take much to derail your company. I sometimes wonder if our country has the same " business model " as these dying auto outfits.

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