Auto Companies, Financial Assistance, Commentary

By November 12, 2008Economy, Labor Unions

Two observations gleaned from longer commentaries…

From Mickey Kaus, Kausfiles:

Wouldn’t it be good PR if the UAW stepped up to the plate and unilaterally, voluntarily, offered a substantial package of givebacks in exchange for all that federal money (and maybe a cap on executive pay)? I don’t expect this to happen–for internal purposes, union leaders probably have to be seen as going down fighting for every dollar. But it would help get the money, no? [Also improve the unions’ image and help them pass “card check”-ed Sorry I suggested it.] 

From an e-mailer to John Derbyshire, the institutional pessimist of the National Review Online, reacting to Derbyshire’s criticism of government aid to the auto manufacturers as another step on the road to nationalization:

We’re not just talking about engineers and assembly line workers being unemployed. GM spends $85 billion a year on components, and billions more on other equipment and services. It has the largest installed base of personal computers of any company in the world and the Warren Tech Center has supercomputers that are the envy of many governments around the world. If GM folds, it won’t just take down their automotive suppliers, it will hit companies like Microsoft, Dell, Cisco and Autodesk (publishers of CAD software), and hit them hard. As the collapse of the Detroit car companies cascades and ripples through the economy, we could see unemployment reach 15 percent or more. All those folks saying to hell with Detroit have no idea how much their own jobs may be imperiled.

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