11-16-2008, 07:07 PM
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Lifetime Suspension
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The right to work...Death of the Big Three
Written by Megan McArdle on the demise of the Big Three and especially the UAW.
I don't see all three dying but certainly at least one likely disappear. I see the big three going into bankruptsy. If they don't it and they get a bailout, it will just be a continuation of the craptastic car making they have done over the past 3-4 decades. Time to put the buggy in the shed and the horse out int he pasture. Going to a lot of hurt all around!!
Right to Work
Nor do I think it's funny to see autoworkers who lived quite a bit better than most of America get their comeuppance. It really doesn't matter what you make; losing everything, most especially your dreams and your sense of security, is one of the worst things that can happen to a person. Laid-off consultants don't starve, of course, but neither will laid-off auto workers. They'll just be forced several rungs down the economic ladder. It will be humiliating, difficult, and it will sour a number of them permanently on life, and their country. If I could stop that from happening to people, without making some other aspect of life much worse, I would.
But whatever your feeling about government intervention in the economy, or the correct level of income inequality, I think there's one thing we can all agree on: for the world to get better, things that don't work have to fail. We cannot keep alive every company, every car and every job that someone once liked, because that way lies stagnation and death. Places where production decisions are made based on how much labor they can consume, rather than how much value they can produce, make everyone in society worse off in the long run.
So while I fully understand the human cost (I think), it has to be borne, for the same reason we couldn't save all the folks who loved their gentle home-weaving traditions, or their jobs making buggy whips. This is, of course, easy to say, when I am not bearing it. But I'm not against helping the auto workers transition to doing something else; I think unemployment assistance is a good idea, and should be extended during this crisis to at least 52 weeks. I would be fine with a job training program, if we could find one that works (so far, government training programs seem to run from useless to actively harmful). I'd be happy to take some of the money we aren't using bailing out auto companies, and offer relocation assistance to people who are trapped in factory towns.
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