The big three US automakers have already received a $25 billion "bailout" low interest loan from the taxpayers and now they are frantically asking for another $50 billion from us taxpayers. General Motors has announced that without this additional bailout, they will run out of cash by January.
It is estimated that if the three automakers went out of business, it would result in a $200 billion hit to the US economy. In addition, we are told that 2 million American jobs would be lost from the auto companies themselves, and from peripheral businesses (parts suppliers, etc.). I believe those estimates are overstated and the companies are playing a game of "chicken" with the government to get more bailout money.
If I were President, I would tell the CEO's of the auto companies to pack their briefcases, go back to Detroit and solve these problems by themselves; or go bankrupt. If all three US auto companies went out of business it would be a dramatic event in the history of this country, but out of the ashes of their destruction would come a better, stronger auto industry that would be competitive with the rest of the world. Detroit's problems are all of their own making primarily as a result of ridiculous union agreements and lack of long term research on new technologies.
In the past auto companies agreed to employee pension and lifetime health care agreements that even a junior accountant should have known they could never pay for. With the low cost of gasoline, they continued to produce large gas guzzling cars and trucks based on old technology. Then when the price of oil went through the roof their market disappeared.
But the worst agreement the automakers were talked into by the United Auto Workers was the "Jobs Bank Program". To put it simply, this was a worker security guarantee program agreed to in the mid 1980's.This was a plan to guarantee pay and benefits to union members whose jobs fell victim to technological progress, plant closings, or restructuring. So as the rest of the world became more productive through automation and the digital revolution, the US automakers were stuck with these Jobs Bank agreements. As a result, by 2005 there were 12000 auto workers being paid "not to work". And as Jeremiah Wright would say: "Now the chickens have come home to roost".
I recently read a story about one auto worker. He shows up at 7 am every morning at a Ford Motor Company manufacturing plant and signs in. Then his "work day" starts - he works on crossword puzzles, and watches videos. He says it is monotonous, but his pay is $31/hour plus benefits, for no work. And when he reaches retirement age for this "no work" position he will retire with a very generous pension plus health benefits for life. He is one of the 12000 in the Jobs Bank as of 2005; so is it any wonder the automakers are in trouble?
Automakers are trying to renegotiate this Jobs Bank agreement but the damage is done. And if the big three go bankrupt many of those employee pension and lifetime health benefits will be gone. Or maybe the government will give these auto workers a "bailout" too.
Tuesday, November 11, 2008
Monday, November 10, 2008
Our "morons" in Washington
When the market started going south because of the mortgage crisis our Congress led by the Bush administration jumped in:
- A $300 billion "stimulus" bill which sent a check ( welfare payment) to almost all of us.
- An $85 billion bailout for AIG.
- A $25 billion bailout loan to US auto companies who now want another $50 billion.
And finally, a $700 billion bailout program to save "Wall Street" and "Main Street". More than 60% of Americans were against the bailout bill, but our politicians said "We need it to save the economy". I joined this 60% of Americans and sent letters, emails, made phone calls to our elected politicians urging them to let the free market work and kill the bailout bill. But our politicians knew better; all we received were canned responses and they passed the bill.
So the government made all of these moves to save us from a bad economy and the market crashed even more than anyone expected. The more bailouts, the more the market went down. If you want to put your faith in our politicians to run the economy be my guest. I'll take the free market and let the chips fall where they may.
Sadly the American people made the right call on this stupid bailout, but Washington did not listen. And now Obama and his Democratic Congress are talking about another "stimulus" package...how exciting, another "free" check for all of us...with money we do not have.
As a kid I remember we told each other "moron" jokes. I recall one in particular: "Why did the moron keep hitting himself in the head with a hammer?" Answer: "Because it felt so good when it stopped hurting". The American people just elected an inexperienced but smooth talking "socialist" as President, and they gave more power to a House and Senate that includes most of the same old cronies that have screwed things up so badly. Reminds me of that old joke.
- A $300 billion "stimulus" bill which sent a check ( welfare payment) to almost all of us.
- An $85 billion bailout for AIG.
- A $25 billion bailout loan to US auto companies who now want another $50 billion.
And finally, a $700 billion bailout program to save "Wall Street" and "Main Street". More than 60% of Americans were against the bailout bill, but our politicians said "We need it to save the economy". I joined this 60% of Americans and sent letters, emails, made phone calls to our elected politicians urging them to let the free market work and kill the bailout bill. But our politicians knew better; all we received were canned responses and they passed the bill.
So the government made all of these moves to save us from a bad economy and the market crashed even more than anyone expected. The more bailouts, the more the market went down. If you want to put your faith in our politicians to run the economy be my guest. I'll take the free market and let the chips fall where they may.
Sadly the American people made the right call on this stupid bailout, but Washington did not listen. And now Obama and his Democratic Congress are talking about another "stimulus" package...how exciting, another "free" check for all of us...with money we do not have.
As a kid I remember we told each other "moron" jokes. I recall one in particular: "Why did the moron keep hitting himself in the head with a hammer?" Answer: "Because it felt so good when it stopped hurting". The American people just elected an inexperienced but smooth talking "socialist" as President, and they gave more power to a House and Senate that includes most of the same old cronies that have screwed things up so badly. Reminds me of that old joke.
Wednesday, November 5, 2008
Reflections
This blog may be rambling because my mind is still trying to clear itself after the election. I am very competitive and am a poor loser (even when I compete vicariously through someone else), so here are some random thoughts:
- I believe in this democracy and therefore feel we need to stand behind our new President and give him a chance.
- Obama's first appointment was to make Rahm Emanuel his Chief of Staff. Emanuel is a left wing "tough guy" from the Clinton administration, but also has a reputation for being fiscally conservative so he may be a "buffer" against all of the Democrats proposed spending. He is also a devout Jew whose father fought for the Israeli resistance before the founding of Israel. This appointment by Obama certainly will raise some eyebrows in the Muslim community.
- The stock market in the two days after the election had the largest post-election decline in history, and many experts say the market predicts the future. The market seems to be moving up and down on emotion and the possibility that Obama may raise taxes across the board. Let's hope some of his top economic advisers will convince him that to raise taxes now would be a death blow to the US economy.
- John McCain had his "chance" - how he ever became the Republican candidate still amazes me; I guess Republican voters in the primaries wanted to give him a "lifetime achievement award". He ran the worse campaign I have seen in my lifetime, so let's hope he will fade into the sunset and some young vibrant Conservatives will take the helm and get the ship back on course. No more chances for McCain or his RINO associates "my friends". Ironically, McCain's best speech of the campaign was his concession speech.
- Sarah Palin was attacked viciously during the campaign and now is even being attacked by members of the McCain campaign. Maybe she did stumble a few times during the campaign, and she did not have the depth of experience of a Joe Biden, but had she been running head-to-head against Biden she would have destroyed him. She was thrust into a situation that most of us could never handle. So she will go back to Alaska, continue with her responsibilities as governor and I believe she will have her chance again.
- The "green" movement took a big hit in this election. Almost every green initiative in the country was defeated. Not because people are anti- environment, they are starting to realize we just cannot keep spending money we do not have.
- During the next few months you will see thousands of people lose their jobs because of the failing economy. Watch closely - how many of these lost jobs will be government employees? Very few - and if Obama follows through with all of his "large government" promises, while the productive private sector in this country is cutting jobs the government will probably be hiring.
So in closing, those Conservatives out there do not lose hope. Our movement may be dormant for a while but only to regroup. We need to get rid of the "moderate" dinosaurs in our party and go back to our principles. Conservatism never grows old and it will never die. The Soviet Union tried to kill it, China has tried to kill it, but it remains alive. You cannot kill the basic human desire for individual freedom.
- I believe in this democracy and therefore feel we need to stand behind our new President and give him a chance.
- Obama's first appointment was to make Rahm Emanuel his Chief of Staff. Emanuel is a left wing "tough guy" from the Clinton administration, but also has a reputation for being fiscally conservative so he may be a "buffer" against all of the Democrats proposed spending. He is also a devout Jew whose father fought for the Israeli resistance before the founding of Israel. This appointment by Obama certainly will raise some eyebrows in the Muslim community.
- The stock market in the two days after the election had the largest post-election decline in history, and many experts say the market predicts the future. The market seems to be moving up and down on emotion and the possibility that Obama may raise taxes across the board. Let's hope some of his top economic advisers will convince him that to raise taxes now would be a death blow to the US economy.
- John McCain had his "chance" - how he ever became the Republican candidate still amazes me; I guess Republican voters in the primaries wanted to give him a "lifetime achievement award". He ran the worse campaign I have seen in my lifetime, so let's hope he will fade into the sunset and some young vibrant Conservatives will take the helm and get the ship back on course. No more chances for McCain or his RINO associates "my friends". Ironically, McCain's best speech of the campaign was his concession speech.
- Sarah Palin was attacked viciously during the campaign and now is even being attacked by members of the McCain campaign. Maybe she did stumble a few times during the campaign, and she did not have the depth of experience of a Joe Biden, but had she been running head-to-head against Biden she would have destroyed him. She was thrust into a situation that most of us could never handle. So she will go back to Alaska, continue with her responsibilities as governor and I believe she will have her chance again.
- The "green" movement took a big hit in this election. Almost every green initiative in the country was defeated. Not because people are anti- environment, they are starting to realize we just cannot keep spending money we do not have.
- During the next few months you will see thousands of people lose their jobs because of the failing economy. Watch closely - how many of these lost jobs will be government employees? Very few - and if Obama follows through with all of his "large government" promises, while the productive private sector in this country is cutting jobs the government will probably be hiring.
So in closing, those Conservatives out there do not lose hope. Our movement may be dormant for a while but only to regroup. We need to get rid of the "moderate" dinosaurs in our party and go back to our principles. Conservatism never grows old and it will never die. The Soviet Union tried to kill it, China has tried to kill it, but it remains alive. You cannot kill the basic human desire for individual freedom.
Sunday, November 2, 2008
Some decisions are easy
A good friend of mine has a small business employing 30 people. He has resigned himself to the fact that Barack Obama along with a Democratic House and Senate will probably take full control after this election.
Like most businessmen he is already planning for the future and estimates that with the additional taxes and fees the Obama administration promises, he will have to raise his prices 8%. In addition, he believes that he might have to layoff as many as 6 of his employees. He is in a quandary since all of these employees are like "family". I can appreciate his position having had my own small business for many years with as many as 25 employees - they were all like my family.
He could not decide how to choose who he would have to let go, so one day he went out into the parking lot and noticed that 8 of his 30 employees had "Obama" bumper stickers on their cars. Those 8 became his "layoff list".
Sometimes business decisions can be easy.
Like most businessmen he is already planning for the future and estimates that with the additional taxes and fees the Obama administration promises, he will have to raise his prices 8%. In addition, he believes that he might have to layoff as many as 6 of his employees. He is in a quandary since all of these employees are like "family". I can appreciate his position having had my own small business for many years with as many as 25 employees - they were all like my family.
He could not decide how to choose who he would have to let go, so one day he went out into the parking lot and noticed that 8 of his 30 employees had "Obama" bumper stickers on their cars. Those 8 became his "layoff list".
Sometimes business decisions can be easy.
Friday, October 31, 2008
"Blood in the Streets"
I wanted to write one more blog before the election, but it seemed like everything has been said.
Then today I heard about an interview that author Erica Jong gave in Italy this week. Erica Jong is an author of many "feminist" (erotic) novels and a well known liberal who not only hates George Bush, but believes the conspiracy theory that the 911 attack was an "inside job" orchestrated by the Bush administration. I would normally not waste time writing about Erica Jong, especially since one of her best friends is our famous "patriot" Jane Fonda.
But Jong made an interesting comment during this interview. She said, "If Obama loses, there will be a second civil war in the USA, with blood in the streets". Wow...that is even worse than those of us that will be called a "racist" if Obama loses.
At this time it looks like Obama may win, but I am an optimist and I still believe the voters on Tuesday will THINK about this country and where it would go under an Obama/Pelosi/Reid administration. Even the polls this weekend seem to be changing slightly toward McCain.
But if the Democrats win; and if they take full control of the House and Senate; Republicans will not riot, and there will be no "blood in the streets". We will regroup, try to move the Republican party back to their conservative roots, and work on getting this country back on the right track; hopefully with young conservative leaders like Sarah Palin and Bobby Jendal, Governor of Louisiana. And I believe that over time, the Democrats will prove, like Jimmy Carter did, that a socialist program will never defeat the American spirit, and Conservatism will rise again.
Then today I heard about an interview that author Erica Jong gave in Italy this week. Erica Jong is an author of many "feminist" (erotic) novels and a well known liberal who not only hates George Bush, but believes the conspiracy theory that the 911 attack was an "inside job" orchestrated by the Bush administration. I would normally not waste time writing about Erica Jong, especially since one of her best friends is our famous "patriot" Jane Fonda.
But Jong made an interesting comment during this interview. She said, "If Obama loses, there will be a second civil war in the USA, with blood in the streets". Wow...that is even worse than those of us that will be called a "racist" if Obama loses.
At this time it looks like Obama may win, but I am an optimist and I still believe the voters on Tuesday will THINK about this country and where it would go under an Obama/Pelosi/Reid administration. Even the polls this weekend seem to be changing slightly toward McCain.
But if the Democrats win; and if they take full control of the House and Senate; Republicans will not riot, and there will be no "blood in the streets". We will regroup, try to move the Republican party back to their conservative roots, and work on getting this country back on the right track; hopefully with young conservative leaders like Sarah Palin and Bobby Jendal, Governor of Louisiana. And I believe that over time, the Democrats will prove, like Jimmy Carter did, that a socialist program will never defeat the American spirit, and Conservatism will rise again.
Tuesday, October 28, 2008
"Sprint to the Finish"
As a former runner and triathlete I remember how important it was to have some energy at the end of a race; to make a final "sprint to the finish"; and sometimes that was enough to win or at least move up several positions in the final standings.
This week is the final sprint in the election and both sides are sucking it up and pouring out all their final energy heading for the finish line.
The pollsters are doing the same thing. It's hard to tell during the campaign season what polls are accurate and what are phony because they go all over the place. But most experts agree that the pollsters "get focused" during the last week and the polls start becoming accurate. After all, the polling companies have to keep their reputation. Isn't it interesting that the polls are starting to close. Obama still has the lead, but that lead is getting smaller.
Now the candidates are "focusing" also. Last week Obama said "Everyone making under $250,000 will get a tax break". This week he said "If you make less than $200,000 you will not see your taxes increase" And also this week Joe Biden said, "Everyone making less that $150,000 will see no change in their taxes. Hmmm...it appears the Obama campaign are also starting to "focus" in on a final number for tax cuts - keep your hand on your wallet.
This week is the final sprint in the election and both sides are sucking it up and pouring out all their final energy heading for the finish line.
The pollsters are doing the same thing. It's hard to tell during the campaign season what polls are accurate and what are phony because they go all over the place. But most experts agree that the pollsters "get focused" during the last week and the polls start becoming accurate. After all, the polling companies have to keep their reputation. Isn't it interesting that the polls are starting to close. Obama still has the lead, but that lead is getting smaller.
Now the candidates are "focusing" also. Last week Obama said "Everyone making under $250,000 will get a tax break". This week he said "If you make less than $200,000 you will not see your taxes increase" And also this week Joe Biden said, "Everyone making less that $150,000 will see no change in their taxes. Hmmm...it appears the Obama campaign are also starting to "focus" in on a final number for tax cuts - keep your hand on your wallet.
Monday, October 27, 2008
I have finally become a racist
I grew up in upstate New York and I give my parents credit for being the most tolerant human beings I ever knew. Yes, I did grow up in an all white neighborhood and went to (almost) all white schools, but I can honestly say that I never heard the "N" word until at the age of 15 we moved to a small town in Florida. Then I experienced what segregation was all about. But it was too late, by that time I thought of blacks as human beings just like me.
So here we are now in a historical campaign that could produce the first black President. To those on the left this is an opportunity for the country to finally bring the civil rights movement to its "peak". But is that going to happen?
- If we criticize Obama for his looks (big ears), his middle name "Hussein", or his comment, "Oh by the way they will say I am black", we are racist.
- If we criticize his wife's comments about the USA being a "mean country", or that "for the first time she is proud of this country", we are racist.
- If we criticize Obama's friends; Reverend Wright, Bill Ayers, Tony Resko, Louis Farrakhan, Reverend Phlegar, we are racist. But are not your friends a reflection of your character?
- Last week a black Congressman said that even the word "socialist" is a code word for racism. I wrote a Blog on that a few weeks ago...hmm.
- And tonight Jonathan Alter, a far left ideologue stated, "At this point if Obama loses the election, the results will be because of racism".
So here I am after a lifetime of being tolerant; a history of hiring black employees (without ever considering their color); and by the way, I have fired black employees because they have not performed; now I have become a "racist".
We are told that Obama is the candidate that will bring the country together. I predict that if he becomes President we will continually be faced with accusations of "racism" whenever we criticize his actions or decisions. I wonder if in the weekly White House press sessions, if a "President Obama" will ever get the tough and sometimes ridiculous questions that George Bush or other Republican Presidents have been submitted to.
The way Obama and his campaign have run this campaign, pointing everything toward racism, I believe the end result will be to put race relations in this country back instead of forward. I have never been a racist until the Obama campaign defined me as one.
So here we are now in a historical campaign that could produce the first black President. To those on the left this is an opportunity for the country to finally bring the civil rights movement to its "peak". But is that going to happen?
- If we criticize Obama for his looks (big ears), his middle name "Hussein", or his comment, "Oh by the way they will say I am black", we are racist.
- If we criticize his wife's comments about the USA being a "mean country", or that "for the first time she is proud of this country", we are racist.
- If we criticize Obama's friends; Reverend Wright, Bill Ayers, Tony Resko, Louis Farrakhan, Reverend Phlegar, we are racist. But are not your friends a reflection of your character?
- Last week a black Congressman said that even the word "socialist" is a code word for racism. I wrote a Blog on that a few weeks ago...hmm.
- And tonight Jonathan Alter, a far left ideologue stated, "At this point if Obama loses the election, the results will be because of racism".
So here I am after a lifetime of being tolerant; a history of hiring black employees (without ever considering their color); and by the way, I have fired black employees because they have not performed; now I have become a "racist".
We are told that Obama is the candidate that will bring the country together. I predict that if he becomes President we will continually be faced with accusations of "racism" whenever we criticize his actions or decisions. I wonder if in the weekly White House press sessions, if a "President Obama" will ever get the tough and sometimes ridiculous questions that George Bush or other Republican Presidents have been submitted to.
The way Obama and his campaign have run this campaign, pointing everything toward racism, I believe the end result will be to put race relations in this country back instead of forward. I have never been a racist until the Obama campaign defined me as one.
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