Democratic Party Payoff: Barney’s Bailout Bill for the United Auto Workers (UAW)

Posted on November 18, 2008. Filed under: Blogroll, Economics, Links, Politics, Quotations, Rants, Raves, Resources, Uncategorized, Video | Tags: , , , , , , , , , , , , , , |

Obama intends to bail out auto makers 

 

Should Congress Bail Out The Auto Industry?

 

UAW Spends 3 Million on Obama Ad

 

Peter Schiff – No More Bailouts – Let The American Auto Makers Fail – Failed Management

 

Jim Rogers: Inflation down the road

 

No More Bailouts!!!

 

The Democratic Party and Barack Obama received sigificant campaign contributions from the UAW, both money and time from the UAW memership.

Union members were encouraged to vote for Barack Obama and Democratic Party members running for office.

The union does not want to force the auto companies into bankruptcy that would result in the cancellation of the labor contracts and a new contract with lower wage levels and benefits.

The UAW is now pressing the Democratic Party and President-Elect Obama for a bailout of the big US auto companies.

I am against any and all subsidies and bailouts.

The Federal government should not favor either winners or losers by intervening in the market place.

Any politician of either party that votes for bailouts will not be getting my vote in the future.

Any company that obtains a bailout no matter what form it takes will not be getting my business.

More and more bailouts will result in inflation which is a tax increase on all the income and wealth of the American people.

No more taxes!

No more bailouts!

Let markets work and businesses fail and succeed–the American Way!

Listen to the American people–no more bailouts!

 

You’re Going To Destroy A Worldwide Economy! Ron Paul

 

Andy Rooney on Prices


 

 

Brother, Can You Spare A Dime?

Brother, Can You Spare a Dime?” lyrics by Yip Harburg, music by Jay Gorney (1931)

They used to tell me I was building a dream, and so I followed the mob,
When there was earth to plow, or guns to bear, I was always there right on the job.
They used to tell me I was building a dream, with peace and glory ahead,
Why should I be standing in line, just waiting for bread?

Once I built a railroad, I made it run, made it race against time.
Once I built a railroad; now it’s done. Brother, can you spare a dime?
Once I built a tower, up to the sun, brick, and rivet, and lime;
Once I built a tower, now it’s done. Brother, can you spare a dime?

Once in khaki suits, gee we looked swell,
Full of that Yankee Doodly Dum,
Half a million boots went slogging through Hell,
And I was the kid with the drum!

Say, don’t you remember, they called me Al; it was Al all the time.
Why don’t you remember, I’m your pal? Buddy, can you spare a dime?

Once in khaki suits, gee we looked swell,
Full of that Yankee Doodly Dum,
Half a million boots went slogging through Hell,
And I was the kid with the drum!

Say, don’t you remember, they called me Al; it was Al all the time.
Say, don’t you remember, I’m your pal? Buddy, can you spare a dime?

 

“Annie” (1982) – Tomorrow


 

 

Background Articles and Videos 

 

Annie (1982) – You’re Never Fully Dressed Without A Smile

Jackie Mason ’08 Vlog 59 Bailing Out General Motors

 

Schwarzenegger and Kyl on Auto Bailout: Blame the Unions

 

Peter Schiff – Obamanomics Will Accelerate An American Economic Collapse Into A Great Depression

 

 

Democrats working on bailout plan that includes ownership stake in Detroit automakers

by Ken Thomas | The Associated Press

“…Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, and Sen. Carl Levin, D-Mich., are developing legislation that would let the auto industry tap into the $700 billion Wall Street rescue money, approved by Congress last month, to fund their business operations.

General Motors Corp., Ford Motor Co. and Chrysler LLC are lobbying Congress to approve the aid, citing an economic downturn that has choked off auto sales, frozen credit and made them vulnerable. GM, the nation’s largest automaker, posted a $2.5 billion quarterly loss Friday and has predicted it could run out of cash by the end of the year without government help.

“The reason why the autos are in this challenge is because of the meltdown in the financial market,” said Michigan Gov. Jennifer Granholm. “They were on a restructuring path — yes, they were challenged — but this has utterly kicked them in the gut and is strangling them because they can’t borrow money.”

The legislation could set up a congressional showdown with the White House during President George W. Bush’s final days in office. House Speaker Nancy Pelosi, D-Calif., and Senate Majority Leader Harry Reid, D-Nev., are hoping for quick passage of the auto bailout during a postelection session that begins Monday.

Bush is open to helping the industry, the White House says, but the administration has expressed reservations about using the bailout money beyond the financial sector. …”

http://www.mlive.com/business/index.ssf/2008/11/democrats_working_on_bailout_p.html

 

Detroit: Same Old, Same Old   

Jim Manzi

“…In 1960, the Big 3 sold about 90% of all cars purchased in the U.S; today they sell about 47%.  That is, most cars bought by Americans this year were not made by the Big 3.   And this share loss has accelerated over the past decade.  (Also note that Michigan has already lost more than half of its auto manufacturing jobs in the last ten years, so lots of current Big 3 jobs will likely be “lost” even if they continue to operate outside Chapter 11.)

 

A dollar invested in GM shares twenty years ago would today have a face value of about 7 cents.  There is no five year period that I could find in the last thirty years for which GM’s stock price outperformed the S&P 500.  The market capitalization of GM is now under $2 billion, which is substantially less than that of such icons of our economy as Cognizant Technology Solutions, DaVita, Inc., Freeport-McMoRan Copper & Gold, and the Potash Corporation of Saskatchewan.  GM is in danger of becoming a small-cap.  Investors apparently don’t buy (literally) Cohn’s thesis. …”

http://corner.nationalreview.com/post/?q=NGE4MGEwMTkwMzE3MGE1NWI4MGJkYTA4M2NkMTIwZmU=

 

Groups line up for another bailout

By JULIE HIRSCHFELD DAVIS

The Associated Press

“…Now with the three major U.S. car companies warning they could face a collapse before year’s end without new government help, Democratic congressional leaders are pushing to carve out a portion of the financial rescue money for them.

It’s far from certain the package will become law _ or even see an up-or-down vote. Republicans and President George W. Bush are reluctant to send new money to the carmakers, saying they should instead speed distribution of a $25 billion loan package Congress approved in September to help automakers develop fuel-efficient vehicles. …”

 

 http://www.nola.com/newsflash/index.ssf?/base/politics-16/1226687672112530.xml&storylist=washington

 

UAW leader says blame economy for Detroit 3 woes
Saturday November 15, 4:45 pm ET
By Mark Williams, AP Business Writer

UAW president says economy to blame for automakers problems, not workers

“…General Motors Corp., Ford Motor Co. and Chrysler LLC are seeking $25 billion from the government to get them through the economic crisis and the worst sales slump in more than 25 years. GM appears to be in the worst shape, warning that it can’t borrow from normal sources.

The nation’s largest automaker said it had $16.2 billion in cash at the end of September, raising the possibility that GM will fall below the minimum of $11 billion to $14 billion needed for day-to-day operations by the end of the year.

Democrats in the lame-duck Congress are pressing for a bailout of Detroit’s Big Three with money from the $700 billion Wall Street rescue package. But President George W. Bush and many Republicans have come out against the idea, arguing that the financial rescue package was not intended for such uses, and that a bailout would reward poor management and lead other industries to demand government handouts.

In a statement Saturday, House Speaker Nancy Pelosi said the Democratic proposal gives automakers time to develop plans to assure their long-term viability, including meeting new fuel-efficiency standards and developing new technology.

“A restructured, competitive American automobile industry will continue to play a crucial role in our national economy and in the global marketplace,” she said.

http://biz.yahoo.com/ap/081115/auto_bailout_gettelfinger.html

 

UAW Strike a ‘Defining Moment?’

Rick Moran

 

“…The United Auto Workers, seeking to hold on to lucrative health benefits and job protections, has gone on strike against General Motors for the first time since 1970.

 

 

 

The length of the walkout may hinge on the answers to two crucial questions: How long can the U.A.W. afford to stay out? And how long can G.M. endure a strike? While an indefinite strike would pose risk to both sides, each has made a calculated decision that it has more to gain by standing tough. G.M. is better positioned to handle a strike now than in earlier contract talks, though not for reasons that have to do with strength. With its operations shrinking in the United States, the majority of its sales and profits are now coming from abroad.

GM is seeking to move to a lower cost structure and more flexible work force to better compete against Japanese automakers. The danger, as in every auto strike, is that the network of suppliers and manufactures that feed the GM assembly lines will also be hit thus causing a ripple effect through the economy:  …”

http://www.americanthinker.com/blog/2007/09/uaw_strike_a_defining_moment.html

 

Detroit Automakers a Relic of the Past
A Commentary by Michael Barone

 “…The issue is whether the federal government should bail out, with a capital injection the size of what would have been unthinkable four months ago, General Motors and perhaps the other two U.S.-based auto manufacturers, Ford and Chrysler.

As one born and raised in Detroit and its suburbs, who once lived next door to Big Three factory workers and later went to school with the children of Big Three executives, I have mixed feelings about this proposal. My native Michigan is ailing, with the highest unemployment in the nation, plummeting housing values and cascading foreclosures. Its economy, despite the efforts of two previous governors — Democrat Jim Blanchard and Republican John Engler — is dangerously dependent on what used to be called the Big Three and are now called the Detroit Three.

The bankruptcy of one or more of them would deeply impact the personal lives and dash the seemingly reasonable expectations of those who, directly or indirectly, have depended on them. I can’t help but think of these people when the issue is raised.

And yet the implications of a bailout are frightening. The Detroit Three were unprofitable well before the current financial crisis hit, and GM is reportedly hemorrhaging $1 billion a month. The huge cost of lavish employee and retiree health care benefits, negotiated with the United Auto Workers (UAW), makes it impossible for the companies to sell for a profit anything but the big cars and SUVs that, after gas prices hit $4 a gallon last spring, almost no one wants to buy.

No one in the private sector is willing to pony up a dime for this business plan. GM stock is below its 1946 price, and one investment house has priced it at zero. …”

http://www.rasmussenreports.com/public_content/political_commentary/commentary_by_michael_barone/detroit_automakers_a_relic_of_the_past

Don’t use temporary economic woes to remake U.S. institutions

By Thomas Sowell 

“… is not just a question of being able to put scare headlines on newspapers or alarmist rhetoric on television. Such things are just the prelude to massive political “change” in fundamentally sound institutions that have for more than two centuries made the American economy the envy of most of the world.

If the left succeeds, it will be like amputating your arm because of a stomach ache.

To add to the painful irony, many of those who are most eager to have a massive government intrusion into the market are among those whose previous intrusions into the market are largely responsible for the current financial crisis.

It was the left– the “liberals” or “progressives”– who led the charge to force lending institutions to lend to people whose credit history made them eligible only for “subprime” loans that were risky for both borrowers and lenders.

It started way back in the Carter administration, with the Community Reinvestment Act, and gained momentum over the years with legal threats from Attorney General Janet Reno and thuggery from ACORN, all to force lenders to lend where third parties wanted them to lend. Now we have a bad stomach ache– and now the left wants to start amputating the market.

http://detroitnews.com/apps/pbcs.dll/article?AID=/20081116/OPINION03/811160304

 

United Auto Workers

“…The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, better known as the United Auto Workers (UAW), is a labor union which represents workers in the United States, Canada, and Puerto Rico. Founded in order to represent workers in the automobile manufacturing industry, UAW members in the 21st century work in industries as diverse as health care, casino gaming and higher education. …”

http://en.wikipedia.org/wiki/United_Auto_Workers

 

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