GM grabs another $5 billion

According to Reuters, GM has managed to grab another $5 billion in US tax dollars today.  And the UAW is whining that they aren’t being treated fairly.

“We need President (Barack) Obama and his auto task force to stand up for the interests of workers and retirees in these restructuring negotiations,” the union said in an appeal on its Web site to members.

GM needs to declare bankruptcy.  They need to have a bankruptcy auction of their assets and let someone else make money with the existing factories.  And the UAW needs to shut up and go away.  GM management signed the outrageous union contracts that guaranteed crazy benefits – which they can’t afford to pay.  When the company is gone, both the bad management and the bad union contracts will be history.

And that’s the way the free market works.  It rewards good management and punishes bad management.  GM is a great example of what government does everyday – promise too much to too many people.  (Which helps to explain why I think the government should be smaller too, but that’s another story.)

gk

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One Response

  1. Well, yeah. I don’t know what else to say, cause you’re right on. GM could be the perfect example of how the free market works. Selling off their stuff to someone who won’t make the same mistakes by bowing to the unions just to keep their stock prices high back in the 80s and 90s.

    But no. The government is allowing “surgical bankruptcy” for these a-holes at the crappy car companies, which basically means, “you’re more important than individuals and small businesses so we’ll treat you better than them.”

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