In Chicago, Republic Windows and Doors shut its windows and doors. It appears that Bank of America is involved, perhaps preventing the company from meeting its obligation to the workers.
Workers who were let go staged a sit-in over the weekend. They are pissed. Bosses gave them three day's notice; they're supposed to get 60 days. They also claim they are owed severance and vacation pay.
Meanwhile, Congress is passing out billions, bailing out companies running to ruin, the result of their own greed and mismanagement! Not only so, but their chicanery set in motion an economic crisis not seen since 1929! And as if to complete this surreal picture, the CEO of Merrill Lynch has the unmitigated gall to insist he "deserves" a $10 million bonus for his "work" in 2008!
Meanwhile, President-elect Obama jumped into the fray on the side of the workers. "The workers who are asking for the benefits and payments that they have earned," said Obama, "I think they're absolutely right and understand that what's happening to them is reflective of what's happening across this economy."
Obama didn't quit there, either. As part of a more extensive statement, he said "...number one, I think that these workers, if they have earned their benefits and pay, then these companies need to follow through on those commitments.
"Number two, I think it is important for us to make sure that, moving forward, any economic plan we put in place helps businesses to meet payroll so we are not seeing these kinds of circumstances again."
Finally we have someone soon to be in charge who doesn't think that the first thing to do when ordinary people are in trouble is cut taxes for the rich!
Finally we have someone who walks the walk instead of merely talking the talk.
Finally we have someone who actually gives a damn instead of pretending to care while pulling the rug out from those most in need!
Finally we have someone who recognizes that millions of Americans hanging by their fingernails to a sinking ship as the sharks begin to circle also need a "bail-out."
Finally!
Political and religious commentary from a liberal, secular, humanistic perspective.
Showing posts with label Bailout. Show all posts
Showing posts with label Bailout. Show all posts
Tuesday, December 9, 2008
Wednesday, November 26, 2008
Why the auto industry needs a bailout
They flew to Washington awash in luxury - these captains of the auto industry - in their limousines of the sky to kneel before Congress and beg for money to stave off the imminent collapse of their automobile companies.
The personal jet thing is emblematic of what's wrong with the American automobile industry. Ever since I can remember, the attitude of the car companies relative to the common man, has been expressed in the slogan, "What's good for General Motors is good for the U.S. of A."
Maybe not.
Why are our car companies in deep caca? Why have they been operating on such thin margins so that within days of an economic downtown, they begin to disintegrate before our eyes? No one is suggesting that the disintegration is not real -- although it's good to be suspicious of the poohbahs heading any major corporation these days -- the numbers are clear and too many local dealers are filing bankruptcy and shutting up shop.
Methinks the number one reason, as expressed in the arrogant slogan noted above, is that "Detroit," in its self-aggrandizement, has not paid close enough attention to what people want in their vehicles, and in spite of a constant and growing trend whereby Americans purchase "foreign" cars rather than American cars, the automobile industry kept building ugly behemoths like the new Chrysler line, which were not only not attractive, but failed on the driveability, reliability and safety levels too.
Thus, the editors at Kelley Blue Book, in their 2009 list of cars with the "Best Resale Value," show only three American cars: the Jeep Wrangler in the SUV category; the Chevrolet Tahoe in the Hybrid SUV category, and the Cadillac CTS in the full-size category. The 12 other categories are filled with imports.
It gets worse for the American manufacturers. In Kelley's "2009 Best Resale Value: Top 10 Cars," not one is American made. Honda takes the number one spot and Volkswagen number 10. Six of the others are captured by Toyota/Scion.
Then, there's Car and Driver's list of the Top Ten Best Cars for 2009. Only two American cars made that list, a Cadillac and a Corvette - both GM products.
There is no question that the collapse of the auto industry in the United States would wreak economic havoc. Maybe a bailout of sorts is necessary. But if that happens, it sure as hell needs to be tied to specific performance guidelines as to how the money will be used (not for executive bonuses or expensive retreats for head honchos). And it should be in the form of a loan not a Christmas present.
Most importantly, any bailout money must be related to the manufacture of vehicles that Americans will actually buy - in other words, our cars and trucks must be made to the same specs that companies such as Toyota use.
And before the first dollar is lent, the American auto industry must have in place a plan showing exactly how they intend to do that as well as the costs involved.
Well, hell, I can dream can't I?
The personal jet thing is emblematic of what's wrong with the American automobile industry. Ever since I can remember, the attitude of the car companies relative to the common man, has been expressed in the slogan, "What's good for General Motors is good for the U.S. of A."
Maybe not.
Why are our car companies in deep caca? Why have they been operating on such thin margins so that within days of an economic downtown, they begin to disintegrate before our eyes? No one is suggesting that the disintegration is not real -- although it's good to be suspicious of the poohbahs heading any major corporation these days -- the numbers are clear and too many local dealers are filing bankruptcy and shutting up shop.
Methinks the number one reason, as expressed in the arrogant slogan noted above, is that "Detroit," in its self-aggrandizement, has not paid close enough attention to what people want in their vehicles, and in spite of a constant and growing trend whereby Americans purchase "foreign" cars rather than American cars, the automobile industry kept building ugly behemoths like the new Chrysler line, which were not only not attractive, but failed on the driveability, reliability and safety levels too.
Thus, the editors at Kelley Blue Book, in their 2009 list of cars with the "Best Resale Value," show only three American cars: the Jeep Wrangler in the SUV category; the Chevrolet Tahoe in the Hybrid SUV category, and the Cadillac CTS in the full-size category. The 12 other categories are filled with imports.
It gets worse for the American manufacturers. In Kelley's "2009 Best Resale Value: Top 10 Cars," not one is American made. Honda takes the number one spot and Volkswagen number 10. Six of the others are captured by Toyota/Scion.
Then, there's Car and Driver's list of the Top Ten Best Cars for 2009. Only two American cars made that list, a Cadillac and a Corvette - both GM products.
There is no question that the collapse of the auto industry in the United States would wreak economic havoc. Maybe a bailout of sorts is necessary. But if that happens, it sure as hell needs to be tied to specific performance guidelines as to how the money will be used (not for executive bonuses or expensive retreats for head honchos). And it should be in the form of a loan not a Christmas present.
Most importantly, any bailout money must be related to the manufacture of vehicles that Americans will actually buy - in other words, our cars and trucks must be made to the same specs that companies such as Toyota use.
And before the first dollar is lent, the American auto industry must have in place a plan showing exactly how they intend to do that as well as the costs involved.
Well, hell, I can dream can't I?
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