Thursday, November 13, 2008

Let the Auto Industry Seek Bankruptcy

Can you tell me what ownership this Federal Government managed that has been a success? Social Security sucks. Medicare Sucks. Postal Services sucks. Fannie Mae/Freddie mac sucks. The DMV really sucks. Actually, I don't think there is a government program that worked.

So, we can assume that when the government owns a business, it will never be as successful than the private sector. Therefore, when the government wants to own banks, oil companies, and the auto industry, you can guarantee with certainty a disaster.

Today, Congress is very aggressive to bailout the auto industry by loaning them our tax payers money with no guarantee that it would work. And the reason it won't work is due to greedy unions that represent these automakers. I'm not blaming these automakers. I own a Ford Mustang and I love my car. I blame the union idiots that have handcuff the whole industry. These unions have raised overhead to the point the companies cannot sell at competitive prices.

Throwing a big bailout check at an industry is simply throwing money into the fire. It's not going to solve the financial problems that the unions mishandled. It's not going to produce cheaper and efficient cars. The answer to this is to get rid of the unions. To bailout using our tax payers money, we are just propping up a failing industry.

If the auto industry can stop these blood sucking unions, the industry can move shop into a Right to Work state, allowing companies to merge, or let it go into bankruptcy.

I would prefer to see bankruptcy proceedings to occur. I think it would benefit for the industry and the tax payer. Bankruptcy is not the end of a company. The most important point is that filing bankruptcy would allow the companies to rid themselves of the union contracts and start fresh with a free market labor force. By this restructuring, there will more freedom to hire the right workers to produce a better product for a lot less money without the constraints of a counter productive union.

If you feel skeptical, look what happened to the airline industry? Many of them went through bankruptcy, and yet, they are still here. So, lets do what is right? Congress has wasted $4 trillion dollars of our tax dollars. Do us a favor. Let the auto industry seek bankruptcy and let them learn from their mistakes. Enough is enough.