GM/Chrysler loan - Email I sent this morning to 89x
I meant to do a post on this earlier, but I was motivated by a discussion this morning on 89x to help fill in the blanks where questions were left unanswered. If I have time later, I'll polish this up a bit, or ask me some questions on this and we'll fill it out together. :^)
Just to put some numbers on it, the latest study (NPR story yesterday: Expert Examines Impact Of Big Three's Collapse) of the effects of the loan versus two companies going into bankruptcy found that the cost of a $15 billion loan, even if it is only paid back halfway pales in comparison to the over $60 billion that it will cost taxpayers if two companies go into bankruptcy in lost taxes, welfare, pension coverage and other direct costs, not to mention the rest of the fallout that will occur from having millions on the street with no healthcare.
What it seems that many people do not realize is that all auto companies use the same suppliers, and if the the big three go under, auto supplies will effectively lock up for months. That will push out the rest of the companies as well - where will the jobs be then?
You and your callers hit it on the head though - this is all about killing the UAW. It's not my favorite union, but they are one of the last groups still strong enough to stand up for workers' rights. Ask people this question - when the unions are gone, who is going to keep fighting for a five-day work week, for living wages, for medical and retirement benefits, for a safe and functional working environment? These companies have no problem paying kids to work 60 hour weeks in toxic factories in other countries, why would they care about bringing back the 20's right here in the USA?
Another perspective question - what did auto executives do that every other executive in companies of the same size did not do? Is there any industry of the same size where you couldn't point to greed and bad decisions? This is typical tactics by the Republicans - find some rich person and find something to attack about them so you can blame everyone else, and then if someone brings up the workers, make up some complete lie about how they 'rich' so they can be targetted as well.
Republican leaders don't care about how much it destroys the country as long as they get what they want. Speaking of which, rich Republican voters in Michigan are not regretting a thing; I can tell you about several I know personally that have moved their money and businesses off-shore so that the country can go into the toilet without hurting their bottom line. As you heard last hour, the non-rich (or dupes) are so caught up in this mythology of blaming auto executives and 'rich workers' that regular news networks are peddling that you can't even talk to them rationally.
The bottom line is that not giving a loan to the auto companies will cost US taxpayers at least four times more money, will make it harder for the other auto companies to do business in this country, will hit smaller businesses related to the industry hardest, and will be used as an excuse to take away worker's pay, benefits, retirement and any other corporate responsibility they can get to to push the national standards down even further.
Full disclosure: I have friends and family directly related to auto industries, though I am not, unless an occasional contract for companies like Murray's Parts counts. :^)
Just to put some numbers on it, the latest study (NPR story yesterday: Expert Examines Impact Of Big Three's Collapse) of the effects of the loan versus two companies going into bankruptcy found that the cost of a $15 billion loan, even if it is only paid back halfway pales in comparison to the over $60 billion that it will cost taxpayers if two companies go into bankruptcy in lost taxes, welfare, pension coverage and other direct costs, not to mention the rest of the fallout that will occur from having millions on the street with no healthcare.
What it seems that many people do not realize is that all auto companies use the same suppliers, and if the the big three go under, auto supplies will effectively lock up for months. That will push out the rest of the companies as well - where will the jobs be then?
You and your callers hit it on the head though - this is all about killing the UAW. It's not my favorite union, but they are one of the last groups still strong enough to stand up for workers' rights. Ask people this question - when the unions are gone, who is going to keep fighting for a five-day work week, for living wages, for medical and retirement benefits, for a safe and functional working environment? These companies have no problem paying kids to work 60 hour weeks in toxic factories in other countries, why would they care about bringing back the 20's right here in the USA?
Another perspective question - what did auto executives do that every other executive in companies of the same size did not do? Is there any industry of the same size where you couldn't point to greed and bad decisions? This is typical tactics by the Republicans - find some rich person and find something to attack about them so you can blame everyone else, and then if someone brings up the workers, make up some complete lie about how they 'rich' so they can be targetted as well.
Republican leaders don't care about how much it destroys the country as long as they get what they want. Speaking of which, rich Republican voters in Michigan are not regretting a thing; I can tell you about several I know personally that have moved their money and businesses off-shore so that the country can go into the toilet without hurting their bottom line. As you heard last hour, the non-rich (or dupes) are so caught up in this mythology of blaming auto executives and 'rich workers' that regular news networks are peddling that you can't even talk to them rationally.
The bottom line is that not giving a loan to the auto companies will cost US taxpayers at least four times more money, will make it harder for the other auto companies to do business in this country, will hit smaller businesses related to the industry hardest, and will be used as an excuse to take away worker's pay, benefits, retirement and any other corporate responsibility they can get to to push the national standards down even further.
Full disclosure: I have friends and family directly related to auto industries, though I am not, unless an occasional contract for companies like Murray's Parts counts. :^)