Friday, November 14, 2008

Economic Delusion – Automakers’ Crash

Well, the Corporate Libertarianism Ideology is right. The Free Market does determine the strong and the weak. At the moment, GM and Ford are weak and they are heading for bankruptcy and, before the year’s end, another million or so will be unemployed because those libertarians are winning the argument that the Free Market principles should prevail over government intervention. I guess the idea is to prove oneself right in spite of the consequences. Sort of like cutting off your nose to spite your face because your nose is running. Man, when this effing country gets in an ideology rut, we sure like to get nice and comfy in it.

I guess I have to SHOUT! WHAT HAPPENS WHEN THE ENTIRE ECONOMY IS DUMPING AND GM AND FORD FAILS? I’ll tell you what happens. It just adds three million more to the unemployed list and that means three million more people can’t afford their mortgages, utility bills, car payments and the spiral downward continues. The FACT IS that if GM goes down, it will take Ford down with it, and vice versa, and ALL of the related manufacturing companies linked to both auto makers. And when they both go down, the ripple effect through the rest of the economy will devastate other industries because bills are not paid.

I heard another corporate libertarian last night on the KGO Radio Gene Burns Show blaming the union contracts, labor costs and uncompetitive prices, on and on, blaming everyone except management; the same old bullshit. How about DUMB SHORT-SIGHTED MANAGEMENT? Could that be the reason? GM and Ford ignored fuel efficiency improvements for years; they ignored W. Edwards Deming, the most influential person who improved Japanese automobiles, and they paid huge lobbying and attorney fees fighting every initiative to improve America’s automobiles INSTEAD OF IMPROVING THEIR CARS. You don't see Japanese automakers heading for bankruptcy.

Why don’t all of you corporate libertarians do all of us a favor? Jump out of a window. Make sure it’s a tall building so we won’t have to lay you up in a hospital and have your hospital bills to tend with.

Saving the companies is a bitter pill, but the rest of the economy can't afford for them to fail. Unfortunately, Treasury Secretary Paulson and President Bush will let GM and Ford crash before they leave office and the mess just becomes that much bigger and that much harder for Obama to clean up. It may be that Obama’s team can’t clean it up. Maybe America will become the Banana Republic John Gray predicted it would become in his 1998 book, False Dawn. So much for the Paulson rescue. The effing banking idiots are not using it as intended anyway; they’re continuing the bonuses, dividends and perks instead of extending credit. That initiative is turning into a bailout instead of a rescue after all. Now, we can add GM and Ford to the failed corporations. There will be a lot more bankruptcies before all of this is over. I repeat my previous gripe: someone needs to go to jail, the sooner the better.

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