GM, UAW Agree On New Deal That Makes It Certain For Another Collapse
As if GM should be making any kind of deals with unions to get them more, they have done just that and, in my mind, cemented their place as an automaker that will be looking for another bailout by the government that owns them in the very near future. The government and the unions do not understand economics and will never understand economics, or they would understand all this plan does is make for more problems in the future. We have to look at why the problems that GM faced in the first place came to be, and one of the major issues was the unions who wanted more and more and GM who kept giving them more. The unions were like crack heads looking for another fix, and the heads of GM at the time were the guys who were throwing money at the crack heads to get their fix. After a bailout that cost the taxpayers BILLIONS of dollars of money that we did not have to spend, we are back in the same position as we were before the bailout, with the unions getting more bonuses and pay increases for workers who already make so much money it would make our heads spin.
As the taxpayers go on with their lives and watch television to make up for their dull lives otherwise, GM (a company that has lost billions in taxpayer funds and continues to lose more with every dip in their stock) continues to make deals that support the unions more than the business. The individuals running GM right now have to understand this is the dumbest move they could have made, but when you have the unions down your throat the right answer is not always the good answer. The unions have the deck stacked at GM and know they can get what they want, but they should also know that the next time GM is about to fail there will be no more money left to bail them out again. The government needs to get out of the business of owning priority stake in auto companies, especially when those auto companies are run by individuals who are out to help the unions more than the individual worker. It is not about what kind of work a person does anymore, it is about what kind of union they are in and what that union can do for them which will determine the price of their labor. This is, in my eyes, the biggest reason for the collapse of GM and the new collapse that we could see within a year, I believe.
If this deal does not show the auto workers that the unions are only out for themselves and not the people who they say they fight for I do not know what will. People like me can show the facts, as I have done many times, to those who work in unions, but the fact of the matter is the people who work for these companies have to stand up and take the initiative to get things done on their own. You are paying your dues, so stand up to the union leaders and make sure that company is still around when you retire. If not, who will get you another job in an industry that is already decimated here in the states?
One major point that we are leaving out of all of this is how it effects the American people as a whole. The truth is that GM has lost a lot of the money that the government has put into them. I know many of you have probably heard or read reports that GM has paid back many billions of dollars that the government threw into the company, but the fact remains that they have lost much more already. With the government still in an ownership role of GM, even after the sale of much of the stock, it remains an organization that can only do so much because the bureaucrats are running the game. The fight is not fair, and at the end of the day we the people lose every time that stock goes down. The smart thing would have been to sell off all of the stock that the government owned at one time, allowing larger investors to grab it up and take the business into the future. If the private sector wanted to make bad deals with the UAW, that would be their business to do so and if they failed that would be their fault. The opposite happened, however. The government kept priority stake in the company and only sold off enough to make it seem like they no longer owned the company. This is a good political move, but those who know the auto industry like myself know that GM is the laughing stock of the industry, not only here in the United States but across the world. It will only be a matter of time before they fall again. It will be up to the Republicans to stand up and make sure another bailout of this failing company does not happen, and more of the taxpayer’s money is not wasted on trivial pursuits as the ones we have spent money on in the past. You know the Democrats will be screaming to save GM, but when you hear that make sure that you realize they are actually screaming “Save the Unions!”
We need to get back to a time when the American people looked at business in a different light. “Too big to fail” is old and the people are sick of hearing it. If the people really knew how much money was lost on these shady deals, the people would be in an uproar. But as I mentioned earlier, the majority of American’s probably do not even know that GM is still owned by them and that they should be telling the government what to do with the company. If the government wants to own a private entity, then they should listen to the people who REALLY own the company and sell off the rest of the shares. The stock price at closing on Friday for GM was $22.61, down .09 in trading. $22.61 is pathetic and the investors are running away from GM for many reasons. One of the biggest reasons they are running away because there is nothing to invest in. The government threw a lot of money into the Chevy Volt, which people thought was great when gas was almost $5 a gallon, but when it fell the people did not want it. Also, when they found out the car really, in the long run, will not save you much money (if any) at all they ran from the prospect of buying a car priced much higher than the other models.
The government has this idea that all the people in our great nation want cars that look like clown cars and want to drive in the slow lane because their battery is dying. This is a misconception that has been passed through the media and through the Congressional circles. Give a man an option between a Hummer and a Volt, and the man will jump for the Hummer. This is the way our society is, and there is nothing wrong with that. The problem comes in when the government believes it can tell the people what they should buy, how much they should have, and in the end probably what color to have as well. That is not free market, that is trying to set up a market where there is no market to try and break even. With the news from these green companies that they are going under or not doing as well as promised, we have proven to those in the green community that there is no money in it. The people cannot afford nor do they want solar panels for their home. They can barely afford to heat their home with the regulations that stifle lower prices in natural gas, how does the government expect them to buy solar panels for their home that will, in the end, cost thousands of dollars? The government is trying to create a market, as they have done with GM, and in both cases we have proof it does not work.
I have a hard time saying these things about GM because I really do love many of their cars. But the fact remains that I, like all others, have to keep our love for history out of this situation and look at it for what it is. The people in this nation are being ripped off and the President, along with Congress, will not be up front with the people and tell them they are being hosed on deals that cost the taxpayers Trillions when it is all said and done. Like everything else, our representatives and our President does not listen to us, but not buying the vehicles that they are trying to push on us as the “next-generation” will not only show the government but private industry that this is still America and we want our muscle cars back, we want our gas guzzlers back, and we want those big trucks that sound like a boat coming down the street. That is CLASSIC America, and we should not feel ashamed of that history.