Should Washington, Ottawa and North American taxpayers spend their hard earned cash to bail out irresponsible corporate behaviour?
Contentious issue we have here isn't it? The auto industry in North America, aka, The Big Three wants you the taxpayer to bail them out of their self induced financial tailspin. At stake are millions of North American jobs. While I feel for the workers involved who will inevitably lose their jobs should the Big Three collapse, they themselves are also part of the problem and why the industry is where it is. Unions and short sighted executives are to blame for this mess and I was always taught that you have to pay for your mistakes.
The executives continued to take out multi million dollar salaries and bonuses despite running a company that was losing money. They flew around in private jets (even when they went begging to the Feds for money), lived in opulent mansions, enjoyed lavish vacations and "business" trips all while their company was going down the tubes.
The unions asked for more and more. The idiotic aforementioned executives gave it to them. To the extent of paying workers for years after they have been laid off. These workers are overpaid, unskilled labour and eventually, that catches up to you. To guarantee someone an overpaid job for life when you are in the business of selling something that the public may or may not buy is ludicrous.
To make things worse, that moron who is the lame duck president known as G.W. Bush will give them some of the money set aside to rescue the other irresponsible fat cats who are the banks and insurance companies. You see, there was a deal in place for Washington to bail out the Big Three and the UAW (United Auto Workers) squashed it when they refused to accept wage cuts. Now how stupid are these guys? Let's see.... either we cut your pay from $25/hr to $20/hr and save your job OR your own irresponsibility can cut your pay to $0. Tough choice. How can the union not understand that? The president should have stuck to his guns and refused to hand over any cash until the Union fell into line and accepted the terms. Period. End of debate.
Massive salary cuts for executives and minor ones to unionized workers. Their previous contract should have been torn up and re-written to more accurately reflect the corporate landscape.
If the Big Three go under for failing to come to agreement with Washington and Ottawa over a rescue package, that is their own fault and they deserve their fate. They are in no position to bargain and should remember that.
They should accept whatever is offered, say "thank you" and get back to work trying to resurrect their fortunes the right way this time.
It is sad when a company can make something that people don't buy then make them pay for it anyways through their taxes.
America lived beyond its means for too long. Mistakes were made and capitalism was taken to the extreme. Anything taken to the extreme is doomed. America is now wallowing in the filth that it created and is dragging the rest of the world down with it.
Greedy banks giving credit and mortgages to people who couldn't afford them. Unions getting their members ridiculous conditions during the good times without thinking there could be bad times. Executives drawing huge salaries and perks while their companies are losing money. It is a never ending cycle of greed and now everyone is paying the piper.
Hopefully, America will learn something from all this and be a stronger society for it but then again, it probably won't. If you don't learn from history, you are bound to repeat it. For better or worse.
