Friday, December 12, 2008

$15 billion bailout is like paying $150,000 for an '87 Le Baron

Imagine, if you can, your son - who is a UAW worker but hasn’t worked in 5 years instead he sits at the “job bank” from 6 am until 2 pm doing nothing and makes $100,000 a year. That’s $20,000 more a year than you make. – pulls his wrecked Corvette into your driveway one afternoon.

Jr. proceeds to demand $15,000 from you to get his car fixed. “WHAT!” you yell. Jr. says, “Yeah, pay up. It’ll be cheaper for you in the long run because if you don’t pay to get my car fixed, I’ll miss work and get fired – sure as a UAW member it’ll take several years but sooner or later they’ll fire me if I stop showing up. Then I’ll be broke and have to move back in with you and mom.”

“Well how much are you going to kick in,” you demand. Jr. explains that things are a little tight for him right now and he just cannot make any concessions at this time.

You point out that $15,000 doesn’t look as if it’ll cover half the damage. Jr. agrees. He demands the $15,000 now explaining he’ll be back for more when he needs it.

“Well what are you going to do with the money,” you demand. Jr. talks about new spinner wheels and a “bitchen” new stereo. You protest that he may want to get the car running right before investing in such unnecessary stuff.

“Look pops you know you’re going to give me the money. You paid for little Sis's house when she couldn't make the payments - a house much better than the one you live in I might add. Mom will make you. Besides if you don’t, your whole world will come crashing down around you. Believe me. I'll make it happen. So just pay up.”

“That’s extortion!” you yell.

“Yeah, it is,” Jr. calmly agrees.

How is the auto bailout any different? The UAW will not make any wage concessions while threatening an end to the world as we know it if Joe taxpayer doesn’t pay for the union’s broken car. Automakers want the money to keep things going for another quarter – then what? Terminator economics that’s what. They’ll be back.

Without fundamental changes in the way the big three and the UAW do business the 15 billion will go right down the crapper. It’s like buying expensive new spinner wheels and a bitchen new stereo for an 87 Le Baron that doesn’t run.

1 comment:

Anonymous said...

The legal mechanisms to resolve the financial difficulties for the car companies and junior already exist. It is called bankruptcy. Sylvester the Cat's son would cover his head in a paper bag and say," Oh father..." but gravelling to conress or the parents is weak. They need to man-up. It will make them stronger.
Griffin The Heartless.