If GM Fails Who Will Benefit
American auto works that work for the three major American based auto firms are much better paid than the competition. Do we really want to change that? Are you sure? That lowers the price we pay for our cars or does it. It lowers
the cost to make cars, do we know that will translate into reduced prices? Of that, I’m not so sure. It may result in increased profits.
So the American taxpayer ends up paying the unemployment benefits. Our assembly line workers loose benefits and GM ends up making more money and the stock holders end up making more money. That’s good for the stockholders and that’s what a corporation is suppose to do. That is, maximize the shareholders profits.
Maybe this is a bullet we need to bite. We need to put our resources into other markets and scale back the importance of our auto making activities. Fewer cars, green cars and basically start over. It is easy for me to say, let the chips fall where they may, that there should be no bailout of the auto industry. I’m living on the other side of the world. I’m retired and no interest in a job. I certainly do not want to see people loose their pensions.
It is time pensions not be so closely to how the company is doing. People should be better able to invest in other income earning methods besides the stock of the companies they work for. If people don’t do that, they are taking a risky position.
This has been coming for 30 years. I don’t think the situation will improve if we bailout the auto industry. The most we should do is work to lessen the blow, to delay it, but to perpetuate this? No. I have to finally fall on the side of no bailout for the auto industry. Those who least deserve or need it will likely come out the best in this but it is time to let capitalism handle this one.
