Wednesday, November 12, 2008

Big Three=Welfare State

The Democrats are busy clamoring for a bailout of America's Big Three Automakers. Apparently they need cash to continue paying people to do absolutely nothing. In story from the Wall Street Journal 15,000 people get paid to sit in a "rubber room" and do absolutely nothing. One person receive the normal $60,000 annual salary plus all the benefits of actually working but alas all they had to do was report to the "rubber room" at 6:00 am and then leave at 2:30 pm. In addition they enjoy 45 minutes off for lunch.

This is a two decade old program negotiated by the labor unions. It has become obvious that the Big Three were more into welfare than it was to make a profit. Now when their profits are negative and cash flow has dropped to unsustainable levels they desire a bailout from the American taxpayer. This rubber room costs the auto makers $1.4-$2.0 billion a year. Imagine paying employees not to work for 2 decades at $1.4 billion that is $28 billion wasted. This is $28 billion that could have been used in worthwhile efforts like retraining employees to make them marketable in other areas of the economy. Instead the Big Three paid employees not to work.

These companies were irresponsible and brought an impending bankruptcy about all by themselves and now the Democrats want to dump even more money into their bailout. They need to go into bankruptcy. Maybe what emerges will be a far more efficient company they refuses to pay people to sit in the "rubber room". This example is proof that giving people something for nothing is not a motivating force. Many of these people never even looked for other employment. They were more than satisfied to sit around for 8.5 hours a day and do nothing. Each one of these 15,000 people was paid between $100,000-$130,000 counting benefits. There is no wonder the Big Three are about to go under.


Taxpayers should not be paying a dime for companies that are this irresponsible. Unions that negotiated these benefits should be ashamed of themselves. Now these same unions will have the American taxpayer bail them out without even reforming the union agreements. This bailout scheme is an injustice to every American that wakes up in the morning and produces something for the American economy. The American taxpayer should not be rewarded waste, fraud, and abuse.

This is just more handouts for the Democrats labor union constituency. Unions enjoyed this philosophy and the UAW told its workers their jobs were "more secure than ever in history." This is unbelievable. Let the auto makers fail and go into bankruptcy. Many of the airlines went this route and the outcome was beneficial to the American economy. The main reason the Democrats clamor for this bailout is because of the union jobs that would otherwise be re-engineered at lower labor rates or be lost all together. Let the bankruptcies begin, we should not feel sorry for an industry that instituted failed welfare policies that do nothing to motivate displaced workers.

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