Showing posts with label bailout. Show all posts
Showing posts with label bailout. Show all posts

Monday, December 15, 2008

GOP to Joe 6-Pack: Drop Dead

The election is over so it is now safe for the GOP to cater to their Wall St friends and tell blue collar workers to stick it. I can't be the only one disgusted that, after giving a blank check to the people who got us into our financial mess, the GOP wants to stick it to one of the nations's last remaining manufacturing sectors so they can use the opportunity union bust and to further push the working man (or woman) further down the economic food chain.The irony is that Wall Street's insistence on quarterly profits, many times at the cost of long term investment, helped push the automakers into this dilemma.

I'm not saying the UAW shouldn't have to negotiate and accept lower pay and benefits, it's a global economy and domestic workers need t deal with the fact that their competition comes from other countries and lower wages. I'm also not saying that the Big 3 domesticautomakers shouldn't pay a price for making cars people want as opposed to making people want the cars they will build before customers know they want it (would have been handy to have a few more fuelefficient cars around when fuel prices rose -- something that has been foreseeable for years). There has been no inclination of management in the auto industry to produce vehicles that get even better fuel economy without the government mandating that they do so, because that would affect Wall Street's profits.
Still with all that, it's the hypocrisy from the GOP, supposed friend of the average guy, that gets me. Aside from fiscal conservatives, who seem to be running from the party, their base is the blue collar worker. Granted, many of them are in the south, where unions were never as popular as in the north, but if I'm a blue collar worker down there I'm wondering if the GOP is going to stab me in the back as soon as my interests and theirs go different ways. They are purposely destroying the middle class in the United States. This isn't some accident, or blunder... it's by design.
Like them or hate them, we all benefit from the presence of labor unions -- unless you're one of the ones working 6 days a week, 14 hours a day, for minimum wage and no benefits in an environmentally hazardous factory where children are running around assisting you. The labor unions rose to counter act excesses by management in a capitalist system. Labor organizations exist to look out for the interests of the workers, while management looks out for the interests of the owners--and somewhere in the middle the two meet, and figure out what is acceptable. In an ideal world, there would be no need for labor to organize. If management andpoliticians oppose the concept of labor organizations, then giving labor no reason to exist, such as paying workers a fair wage with adequate benefits, would be in order. Again, this is hard to do when other societies, whom we compete with, refuse to do the same.
If the government really wanted to help the Big 3, they would take their healthcare costs off of the carmakers' plates and offer universal healthcare. I'd have more respect if the GOP came out and said we're doomed if we keep handing out money like it was candy. We can't keep paying for bailouts, the war on terror, social security, medical care etc without eventually devaluing our currency and/or defaulting on the national debt -- something is going to give. But they didn't. Instead, the GOP continues to exploit every anti labor opportunity, even though their policies to weaken labor have also eroded the middle class and weakened the economy.
In a nutshell: If it's the GOP's rich, banker friends in trouble, they get a blank check. If it's Joe 6-pack, they get an unemployment check. Folks at the top get richer, snatching up corporate assets at bargain prices, while the average worker foots the bill.The economic disaster that the GOP has been engineering won't affect the super rich, and it won't affect the super poor; it is simply designed to bleed out all of the wealth in between. It is bad enough when it is done to us by our competitors, it is horrible when we do it to ourselves.

Tuesday, September 30, 2008

Dear Congress: Stop messing around already!

Dear Congress,

All I want to do this week is fill up my car with gas, go to work, make enough money to pay my bills and buy groceries and maybe save a little for my children's college. To do this my employer needs credit, especially from our customers. That will be a little hard if the credit markets freeze. Companies require credit to conduct their business, which is most of them. A lot of non-banking companies out there, even with good credit, may soon not need the money they need to conduct business as the banks either don't have the money to spare or they are too scared to lend. The thought of 700 billion dollars churns my stomach, but I think in the long run the economic fallout from bank and business failure will cost more than $700B.

At this point I don't really care who is responsible for this mess, I just have this horrible feeling that we're making a bigger mess by not fixing it now. I know its an election year and you have to posture against Wall Street and make sure Main Street is taken care of, but I worry you're really taking care of MainStreet in a bad way. Sooner or later the rest of the world is going to write us off as a bad debt and then where will we be? I understand you don't want to vote for it, because it's politically unpopular, despite being the smart thing to do. Some analysts think that we may even make a profit from this (of course that assumes that less than 50% of the bad mortgages fail), as we have in the past.

Just because the unwashed ignorant masses, which is pretty much most of us, think they'll be sticking it to Wall Street fat cats, doesn't make it so. Yes, some of those businesses made some bad decisions and they deserve to fail. But do we want to see them fail at our expense? Without the bailout, there might not be jobs for any of us to work as credit dries up
. Look I don't like the bailout/investment of those who got us into the mess, which includes you for taking away the regulations that could have prevented this mess, but I like sleeping on the street even less. Just take your pound of flesh and move on already. Nationalize the banks if you have to. Take equity in the banks. Whatever. Just stop farking around and get to work.

I don't know if this plan is how to fix our markets or is just the delaying the inevitable. I'm not an expert on financial markets or monetary policy and this whole rush to pass the bill feels like the runup to Iraq all over again. But I think if we just stick by our laissez-faire guns, it's going to get a lot worse before it gets better. We've made our bed with the housing bubble and all the leveraging. Now we need to sleep in it. Stop digging in on principals before more people lose their jobs or houses. Don't make this an an ideological issue; put the good of the country first. And then, tomorrow, or next week, work on our 10 trillion dollar debt before the dollar is worth no more than monopoly money.

I remember reading in an FDR bio that in the last weeks of the Hoover administration the economy essentially stopped as banks stopped lending money as they waited to see what FDR would do. This had the immediate effect of increasing unemployment as business stopped as they became unable to pay payrolls, hire new employees and buy supplies. Farmers were unable to afford seeds, fertilizer, and pesticides for the next year. I really don't want to see the GreatDepression renamed World Depression I.