GM, Redux:

[jrittenhouse]

So here’s my ideas, half-baked:

• Make the deal comprehensive, and mostly a take it or leave it scenario.  This sucker has been a political football for decades, and this ends here right now.
• All three companies essentially go into a central, nationalized receivership corporation.
• The equity in these businesses is pretty much gone, in any event.  Say

Comments

[rmjwell]

Buy out, not bailout.

The actions taken by the US government should be to protect the limited manufacturing base in the US and the workingmen and women it employs. Government money going to some insane executive golden parachute is right out.

[daddy_guido]

I repectfully disagree

[pompe]

Yeah, I'm with the previous speaker. Deductibles and car subsidies won't help the problem, I think. And someone will continue to sell cars, more fuel-efficient and probably better cars as well. Better to spend the money on re-training of the workers and start-up assistance for innovative new companies (or to build public transit systems, those can't be outsourced quite as easily...).

And if adult education isn't free, subsidize that instead.

[pompe]

I'd also like to add in that if UAW assembler make 20 USD an hour in wages it is not what I'd consider bad pay. That's almost 150 SEK an hour which probably is better than many high school teachers with 4.5 years of college loans would get here. Before tax. Taxes of 28-50%. And the UAW gets pensions and health insurance.

So if I'm to be blunt, if a person with no student loans and a salary of 150 - 250 SEK an hour, plus pensions and health insurance, can't save up money for dark years or to cover for reschooling, it isn't a problem of globalization. Sorry, UAW, I'm a union guy too but they don't have my overwhelming sympathy.

[aisb23]

I had an economics professor back in 1987 who said that GM was too large to survive (Something like 14 layers between the CEO and the factory floor compared to Toyota's 5) and that if they didn't slim down soon they would be heading towards bankruptcy sooner or later.

Looks like he was right.

[akirlu]

And eliminate the existing tax break that for small businesses buying big SUVs, or at least require the businesses to demonstrate why a fuel-efficient vehicle won't do as well. There's no reason on earth to subsidize lawyers and accountants who want to drive to work in a Hummer.