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The Spectacle Blog

Empowering Labor with Bail-Out Money

By Doug Bandow on 5.19.09 @ 6:02PM

Every taxpayer bail-out gives organized labor another excuse to meddle. Now the AFL-CIO is calling on the president to stop General Motors from shifting jobs overseas. The hook? Federal subsidies, naturally!

Argues the AFL-CIO:

General Motors Corp.-which has received some $15.6 billion in federal bailout funds and is asking for another $11.6 billion-plans to use some of that taxpayer money to close 16 U.S. manufacturing plants and increase the number of vehicles made in Mexico, China, Korea and Japan for sale in the United States.

The UAW is asking its members and supporters to send a message to President Obama and to the auto task force that will have to approve GM's restructuring plan, asking both to stand up for the interests of American workers and retirees.

It's ridiculous to let politicians micromanage business decisions. But when those politicians are handing over boatloads of taxpayer funds, it's hard to tell them no. Welcome to the new "mixed" economy--tilted far more in government's direction.

View all comments (6) | Leave a comment

Becky| 5.19.09 @ 6:50PM

Hasn't the historical intention of unions actually been to be exclusive, not inclusive? The UAW does not want other Americans to compete with them, let alone a foreign entity. There are a lot of people that would work at a car factory without the pattern agreement. Delphi in Saginaw proved that.

Michigan and Me| 5.19.09 @ 9:06PM

The UAW is starting to figure out that they are the toxic asset. GM was doing very well around the world, equal to Toyota. GM is leaving the United States market to the government and its quasi public sector union (UAW) to sell its sheet metal. Why do you think the auto executives agreed to a photo op with Obama and his favorite failed governors? It's because they're outta here. In Obama's fantasy to cut our relianced on foreign oil, he's increasing our reliance on foreign debt and chasing our companies to safe havens abroad.

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