Christian Democrats in the United States
Domestic Issues - Jobs and Taxes We demand a living wage for all workers in America and object to attempts to establish a flat tax because of the comparative value of one dollar to one's total capital. We insist on closing tax loopholes for the wealthiest people and corporations, and support tax incentives for corporate programs with substantial public benefit. America must find a way to increase manufacturing exports since service jobs add less to the economy in the long term. We support a shorter, smarter work-week for all Americans. Subscribe to Posts [Atom]
Saturday, December 13, 2008
10:44 AM
EARLIER POST:
The UAW is now crying foul at the Republicans who blocked the passage of the auto industry bailout in the Senate.
While forming unions for collective bargaining is core to the fundamental right of all citizens to freely associate, speak and do business together, the GOP senators do have a point, and it's suicidal for the unions to ignore it.
The math simply doesn't add up. Where is the money supposed to come from? You can't just print money or the whole economy gets out of control and inflation skyrockets, which would crack all of our industries across the board. If Congress is supposed to borrow money from China to lend to our auto industry to keep them afloat, the industry has got to start making money.
Who does the UAW seem to expect to pay for it, eventually? The taxpayers. If the auto industry does not turn a profit, then taxpayers would have to foot the bill. But if the taxpayers are out of work because the auto industry and other industries did not turn a profit, then no one will be able to pay that money back. It's a recipe for disaster.
Profit margin is simply revenue minus cost. If costs are higher than revenue, it's a loss. Asking the hundreds of millions of taxpayers, and our children, and our grandchildren to cover future losses to keep two million people employed is selfish and deluded.
Let's be clear - the fundamental problem with the American auto industry is they produce over-priced, crappy vehicles. Like the Cadillac SUV for $60,000. Who the hell has $60,000 to spend on a car? Very few people - they borrow the money on financing plans. So the shiny truck is used to sell Americans into debt slavery like the Dutch conned native Americans into selling Manhattan for some shiny beads and trinkets. And it's really just a Chevy Yukon with leather seats and some extra chrome. It's hard not to laugh at the purchasers of these gas-guzzling monstrosities - idiots, every last one.
That said, labor costs are still part of the cost equation. In troubled times when we all have to tighten our belts and put our noses to the grindstone just to get by, the auto workers are going to have to pitch in.
What we should do, if the UAW wants to take responsibility for an auto industry that works, is to encourage union ownership of the plants where they work. A concession in exchange for wage cuts could be greater employee ownership of the companies. This would enable the members of the UAW to buy up the debt incurred by the corporations as compensation from their lowered wages. This would give workers a greater incentive to perform, because their wage bonuses or would be dividends directly linked to the performance of the company. In addition, it would enable workers to cross the gap between labor and management which prevents innovation from percolating up from the bottom, from the workers who know best how to increase their efficiency and thus their profit and personal gain.
unions, auto industry and economic viability
NOTE from a later date: Fundamentally, it doesn't make sense to bail out auto makers when pretty much everyone already has a car. Who are they going to sell their over-priced, gas-guzzling cars to? It seems like money down the drain.EARLIER POST:
The UAW is now crying foul at the Republicans who blocked the passage of the auto industry bailout in the Senate.
While forming unions for collective bargaining is core to the fundamental right of all citizens to freely associate, speak and do business together, the GOP senators do have a point, and it's suicidal for the unions to ignore it.
The math simply doesn't add up. Where is the money supposed to come from? You can't just print money or the whole economy gets out of control and inflation skyrockets, which would crack all of our industries across the board. If Congress is supposed to borrow money from China to lend to our auto industry to keep them afloat, the industry has got to start making money.
Who does the UAW seem to expect to pay for it, eventually? The taxpayers. If the auto industry does not turn a profit, then taxpayers would have to foot the bill. But if the taxpayers are out of work because the auto industry and other industries did not turn a profit, then no one will be able to pay that money back. It's a recipe for disaster.
Profit margin is simply revenue minus cost. If costs are higher than revenue, it's a loss. Asking the hundreds of millions of taxpayers, and our children, and our grandchildren to cover future losses to keep two million people employed is selfish and deluded.
Let's be clear - the fundamental problem with the American auto industry is they produce over-priced, crappy vehicles. Like the Cadillac SUV for $60,000. Who the hell has $60,000 to spend on a car? Very few people - they borrow the money on financing plans. So the shiny truck is used to sell Americans into debt slavery like the Dutch conned native Americans into selling Manhattan for some shiny beads and trinkets. And it's really just a Chevy Yukon with leather seats and some extra chrome. It's hard not to laugh at the purchasers of these gas-guzzling monstrosities - idiots, every last one.
That said, labor costs are still part of the cost equation. In troubled times when we all have to tighten our belts and put our noses to the grindstone just to get by, the auto workers are going to have to pitch in.
What we should do, if the UAW wants to take responsibility for an auto industry that works, is to encourage union ownership of the plants where they work. A concession in exchange for wage cuts could be greater employee ownership of the companies. This would enable the members of the UAW to buy up the debt incurred by the corporations as compensation from their lowered wages. This would give workers a greater incentive to perform, because their wage bonuses or would be dividends directly linked to the performance of the company. In addition, it would enable workers to cross the gap between labor and management which prevents innovation from percolating up from the bottom, from the workers who know best how to increase their efficiency and thus their profit and personal gain.
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