Recently, several members of JU have been engaged over the latest hot political topic in the US - The Auto Bailout. Tis the season as they say, but not the Christmas one. As it appears every company that now has to struggle is going hat in hand to congress for a bailout. And the Auto industry is just the latest.
In the discussions that ensued, one of the popular themes was that the only reason the Auto industry was asking for the bail out, and congress - solidly in the democrat (read: American liberals) hands - is entertaining the idea was that going the regular route of Chapter 11 would negate all contracts - and the liberals could not stomach that!
Why you ask? The whole purpose of Bankruptcy is to get a company time to restructure and come out (hopefully) leaner and meaner and to get rid of contracts written in plenty, but unaffordable in tight times.
Like the UAW contract. No one has been arguing that the UAW was never needed, or that it was not at one time a good counterweight to large corporations. But times have changed. Laws have changed. And the market has changed. So much so that the Rust belt is no longer king of auto making in this country, and in areas not dominated by unions, auto makers and employees are making cars and good wages without the animosity and greed that is now associated with Detriot and the UAW.
But all this goes to the point of what a liberal is - and what a conservative is. American style.
For indeed, it is the liberals arguing, tooth and nail, for the bail out. for one reason only. To prevent the elimination of the UAW contract. A contract that is bloated by the incestous relationship that has developed between the UAW and the Big 3 Auto makers. Yes, liberals are very conservative (in the dictionary sense) when it comes to unions. Failing to see that while they were necessary and needed to get us to today, they have long outlived their usefulness and are now not a boon to the industries, but a hindrance. The Big 3 are in Trouble because they cannot innovate and change.
They are locked into contracts and ways of doing things by a contract with an organization that no longer has their members best interest at heart, but their own retention of a power long ago changed from good to abusive.
And so the big 3 probably will get a bailout. Probably will be allowed to continue to waste huge sums of money, and products because they are no longer able to grow and adapt.
Lilke a body that has a sickness, the Auto industry (at least the Big 3) are in trouble. And if they are not allowed to take the medicine that will cure them, it will only get worse. Until the time when no bailout will work. hastening the coming of that day will be the new government controls forced on them by this bailout. Politicians dont know how to do much other than get elected. Making cars is not their strong point. And when they are running auto companies, all they will be offering are Yugos.