Friday, November 14, 2008
David Brooks on the Auto Bailout
Redeeming his faltering credibility as a voice of reason within the conservative movement, David Brooks puts forward a fine summary of why the American auto industry should be allowed to fail. The notion that if one or all of them declares bankruptcy, the whole industry will fail, is flawed. Bankruptcy may be the ONLY way to save these companies from themselves. With bankruptcy will come protection from creditors, the freedom to break labor contracts, and best of all, new management.
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3 comments:
Brooks is back on my Christmas card list.
It is going to be hilarious watching Pelosi and friends try to ram this one through. In a twisted, utterly unpatriotic way, it's a win-win for us--if she's successful, one of the early acts of the O administration will be this absurd bailout and it will take a while to shake the stench of that. If she fails, then stand by for the wrath of big labor.
Couple of thoughts:
1. The Milwaukee Journal-Sentinel ran a poll last week asking if the auto makers should receive a bailout. Mind you, this is a newspaper in a city and state that would make the NYT and urban sophisticates blush at their liberalism. And, southeastern Wisconsin is flush with auto manufacturing plants and suppliers. The poll result? 70% not in favor of the bail-out.
2. Americans have already voted on what they think about spending money on US auto manufacturers, as we have pretty much decided NOT to buy shares of these companies.
3. IF this is to go through, there should be a 1-N list of concessions that the unions MUST agree to prior to financing. #1 on the list is that $0 goes to employee benefit packages.
not only have we decided not to buy shares of these companies, we have also eschewed their products. there is no shortage of blame on auto industry management, and rightfully so, but my hope is that what emerges from their ashes is an industry unconstrained by the untenable burdens unions place on our ability to compete globally.
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