ę "Redshirts" | Main | Disputed Votes in Minnesota: You Be the (Election) Judge Ľ
November 20, 2008

Stop the Bailout, Create More Jobs

Jim Lindgren looks at the other side of things: If we're subsidizing people to work in noncompetitive industries, aren't we also keeping them from working in competitive ones?

He also notes the hidden hand of the government, once again making things worse:

As with so many problems, it is unlikely that GM would have made such foolish deals if the government had not forced it to bargain with striking workers, rather than simply replace them. As with mortgages in the banking industry, the federal government pressured businesses to make deals that were economically bad for the businesses involved.

If an industry is contracting and there is an oversupply of productive capacity, then the worst thing we could do is prop up that industry by taking jobs away from the healthier portions of the economy (including better run automakers). If government planners really were a lot smarter and better planners than business people (they arenít), then the governmentís strategy should be to try to drive bad businesses out of business quicker, not try to destroy the healthy companies by propping up the dying companies.

The argument that the auto unions and the auto executives have already made sufficient givebacks is not credible. And as the Congressmen pointed out, the Detroit executives could have flown to Washington on commercial flights (in first class), instead of in private planes. If a business is failing, union auto wages should be priced well BELOW what nonunion auto workers make, not well ABOVE what nonunion workers make. So until the unions have given back everything above the market value of their labor, they havenít given back nearly enough. I donít know enough about what goes into the $72 compensation rate, but perhaps the parties should consider having all current employees, both management and union workers, take a 50% pay cut.

Top executives should take a bigger cut than that. For one thing, they've failed. For another thing, leaders lead.


digg this
posted by Ace at 03:34 PM

| Access Comments




Recent Comments
ThePrimordialOrderedPair: "[i]Didn't Vince Vaughn play a serial killer back w ..."

Hairyback Guy: "You all realize that if harvey weinstein was a tra ..."

Hillary!: "[i]251 Will Hillary release her toe records? P ..."

Christopher R Taylor: "[i]Why does Hillary Clinton rub elbows with sexual ..."

Mortimer - disappointed: "Fubbin' fabbots. Posted by: Cloyd Freud, Unempl ..."

Grey Fox: "[i]When you say comes crashing down, are we thinki ..."

FireHorse: "Why does Hillary Clinton rub elbows with sexual pr ..."

Old Blue [/b][/i][/s]: "When you say comes crashing down, are we thinking ..."

Your Decidedly Devious Uncle Palpatine. All Honor & Glory to Kekistan! : "252. Rabbot style? Or Cybernetic Ghost of Christm ..."

Alberta Oil Peon, survivor of GNAMM: "I remember watching Changeling, Clint Eastwood's m ..."

naturalfake: "[i] Didn't Vince Vaughn play a serial killer back ..."

flounder, rebel, vulgarian, deplorable, winner: "[i]240 Why does Hillary Clinton rub elbows with s ..."

Recent Entries
Search


MuNuvians
Polls! Polls! Polls!
Frequently Asked Questions
The (Almost) Complete Paul Anka Integrity Kick
Top Top Tens
Greatest Hitjobs

The Ace of Spades HQ Sex-for-Money Skankathon
A D&D Guide to the Democratic Candidates
Margaret Cho: Just Not Funny
More Margaret Cho Abuse
Margaret Cho: Still Not Funny
Iraqi Prisoner Claims He Was Raped... By Woman
Wonkette Announces "Morning Zoo" Format
John Kerry's "Plan" Causes Surrender of Moqtada al-Sadr's Militia
World Muslim Leaders Apologize for Nick Berg's Beheading
Michael Moore Goes on Lunchtime Manhattan Death-Spree
Milestone: Oliver Willis Posts 400th "Fake News Article" Referencing Britney Spears
Liberal Economists Rue a "New Decade of Greed"
Artificial Insouciance: Maureen Dowd's Word Processor Revolts Against Her Numbing Imbecility
Intelligence Officials Eye Blogs for Tips
They Done Found Us Out, Cletus: Intrepid Internet Detective Figures Out Our Master Plan
Shock: Josh Marshall Almost Mentions Sarin Discovery in Iraq
Leather-Clad Biker Freaks Terrorize Australian Town
When Clinton Was President, Torture Was Cool
What Wonkette Means When She Explains What Tina Brown Means
Wonkette's Stand-Up Act
Wankette HQ Gay-Rumors Du Jour
Here's What's Bugging Me: Goose and Slider
My Own Micah Wright Style Confession of Dishonesty
Outraged "Conservatives" React to the FMA
An On-Line Impression of Dennis Miller Having Sex with a Kodiak Bear
The Story the Rightwing Media Refuses to Report!
Our Lunch with David "Glengarry Glen Ross" Mamet
The House of Love: Paul Krugman
A Michael Moore Mystery (TM)
The Dowd-O-Matic!
Liberal Consistency and Other Myths
Kepler's Laws of Liberal Media Bias
John Kerry-- The Splunge! Candidate
"Divisive" Politics & "Attacks on Patriotism" (very long)
The Donkey ("The Raven" parody)
News/Chat
Archives
Powered by
Movable Type 2.64