Friday, December 12, 2008


Do you think the geniuses in Congress can do the math?    Lets see.   73.   That would be the average hourly labor costs paid to UAW workers by the not-so-big three Detroit automakers.   44, on the other hand, is the average hourly labor costs  of the other car manufacturers in the U.S., i.e., Toyota.  

So, what's the answer?   73 - 44 = an untenable business model.   The geniuses in Congress, mostly democrats, who are beholden to the unions and the environmental wackos, have pressured the auto makers to accept ridiculous UAW contracts, and have imposed CAFE standards upon them.   Add to the cauldron the big-bonus nincompoop auto execs  that came up with the Hummer and the Scion, and you come up with a poisonous potion worthy of the Wierd Sisters of  Macbeth.

Now the same geniuses, plus Bush and King Henry (Paulsen), want to use my money, my hard-earned money, to bail Detroit out.   Not to worry, you say, its a loan to Detroit, and they have to pay it back to the taxpayers.    Remember the last time Congress said the loans would be paid back?   Its called the sub-prime mortgage crisis.   



Glenn said...


It's possible to argue against the bailout without using the $73/hour strawman.

The average GM assembly-line worker makes around $30 per hour in wages. the $73 per hour figure is the sum of all of GM's labor, health, and pension costs, divided by the total number of hours worked. In other words, it includes all the healthcare and retirement costs of retired workers.

I just checked my paycheck and I'm outraged that no one else's pension was included.

It's fun to blame the unions for this mess, but why aren't the Japanese automakers asking for a bailout? (

Desman said...

I actually blamed Congress, the UAW, management, Bush, and Paulson.
Bottom line for me is I dont want my money invested in or lent to business that are doomed to fail any way. The restructuting that would result from a bankruptcy proceeding would be more beneficial than a federal bailout.