Ugh, here we go again. We've already been asked to bail out greedy Wall Street who made bad loans for the sake of money and wound up loosing their shirts only to have us the taxpayer buy them all silk ones. Now GM wants a piece of the pie and with a Democrat president to be and the heads of both houses of congress calling for it, I expect it will happen. I try to look at the facts and can't fathom one single idea of why this would be a good thing to do.
1. GM has been bleeding for years, even when the economy was going well. Why? They got into the habit of deciding what we the Joe Driver wanted instead of letting us tell them what we wanted. It caught up with them. Don't forget the unions. They busted balls with their strikes until now GM can't afford to pay them or their pensions or their health benefits. While the first thing may or could change, the second thing isn't. GM has stated that they are loosing over $2 billion A MONTH and that figure is expected to increase after the first of the year. How many billion do you have to give a company bleeding billions of dollars every month to save them? Our government's solution so far is about $25 billion devided between the big three. That comes to a little over $8 billion for GM's share or just until mid-March when things are supposed to be worse for them they they are now.
2. Yes, giving billions of dollars to GM right now will help the very union that helped bleed GM dry live to see another day and possibly another strike so that they can stick the company for more money. Is that what we really want? When the starting salary for a new hire is $29 per hour and when the average experienced union line worker makes twice what an non-automotive industry engineer other highly degreed individual, something is not right. Union wages have been artificially inflated for years and now that an economic recession has come home to roost, they are paying the piper.
3. Yes the union members trickle down their wages to others. Since when does building your economy around three failing companies make good sense? Obviously the American public has spoken by saying they would rather by cars from other companies than GM. Why don't we invest money in companies of our future instead of dinosaurs of our past?
Evidently the currant occupant soon to be evicted it against this and I say more power to him. If he wants to try and redeem himself a marginal amount from being the absolute worst president, he needs to stand up and veto any bailout legislation for GM. But we all know what is going to happen because this will be another bi-partisan load of crap meaning that everyone in government and big business wins and every taxpayer gets screwed. Bush will hold out for free trade with Columbia and sign both pieces of legislation. Government wins again, we lose.