An Elephant in Donkey Land

December 19, 2008

Bush Hands UAW Bailout Illegally

Filed under: Economy — conservativelawstudent @ 8:38 pm
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Not to mention one of the worst, if not the worst decision he has made in a running string of bad decisions. As I have written about before, the American auto industry is in shambles. It is partly about management, but most of this has been caused by the UAW. And make no mistake, this bailout is for the UAW. This will not work, and they will be back within months asking for more. But next time, Ford will be included.

LET.THEM. FAIL. Much like a forest fire is a healthy thing for the forest, when a bad business model fails, it is bad in the short term, good overall in the long term. There will be a vacuum that will be quickly filled by better, more efficient companies.

Not to mention that using TARP funds for this is illegal. The funds for TARP are for “financial institutions.” The Big Three are most certainly NOT financial institutions. Although the definition in the statute is very broad, with the phrase “including, but not limited to,” that does NOT give the government carte blanche to give money to anyone in need. Yes, it will be hard. Yes, a lot of good people will lose their jobs. If there is anyone who knows what that is like, it is me. But it is necessary. And exactly where is this money coming from? Where are these TARP finds coming from? The government HAS NO MONEY! They are in a deficit. A big one.

Bush has been a complete and utter disappointment over the last year. Other than his foreign policy, he has me completely disgusted with the government as a whole. We are slipping very quickly into socialism.

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2 Comments »

  1. hey, this is one place where we agree.

    There will always be a demand, someone will pick up the reigns of supply. However, its not really our place as outsiders to speculate as to whether the union or management is to blame when a company is going down. Its also certainly not our place to rescue them. If both sides care enough about their company, they will need to come up with their own solutions.

    Here in Canada we keep bailing out our biggest airline. I take a flight maybe once every couple years, why should i be paying through taxes to keep this service available?

    Comment by remistevens — March 3, 2009 @ 4:29 pm | Reply

  2. Having worked on the inside of auto companies, I feel I am in a good position to say who is to blame. But your premise is solid. Bad business is bad business, no matter who is to blame, and to prop up these companies, or the airline you mention, is throwing good money after bad.

    Comment by conservativelawstudent — March 12, 2009 @ 2:36 am | Reply


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