Gm to Gum Government Union Motors

If the bankruptcy allows General Motors (GM) to renegotiate with the United Auto Workers (UAW), then the bankruptcy will have one good outcome. GM puts itself in the worst possible position when it accepted government bail out money. Capitalism is the engine that drives America’s greatness. Businessmen and women are responsible for great advances in medical, mechanical and communication technology because of one thing- the demand for better and more advanced products in the marketplace. America is not based on socialism, communism, Marxism or any number of other isms that are counterproductive to capitalistic endeavors.

Does that mean that the UAW is responsible for the demise of GM? Of course not, but it does not help when we hear stories on laid off UAW workers getting full benefits and salary for 9 months solid for not doing a bit of work, an all they have to offer is complaining because they are not getting overtime. Don’t misunderstand me: corporate greed and union greed are both responsible for one of the greatest auto companies on the planet. But just like our government, when spending goes unchecked, failure is imminent.

The market can make adjustments on its own without government interference. That goes for the stock market, the auto market or your local ,market down the street. When trouble threatens, innovative people began scrambling because they have vested interests in the result that their business has to survive. By giving bailouts, we empower the weaknesses that got the businesses or markets to the problem points in the first place.

There is no good result from bailouts. If a business has to file reorganization bankruptcy, then that company will indeed have to reorganize to come out of the fire. Or fail in the process. We were lied to when we were told that America cannot make it without such and such industry. Nature abhors a vacuum and someone or some thing would fill the void if an industry were to fail. A new innovative product would emerge, or another genius entrepreneur would rise up with a great idea for which there would be tremendous demand. That’s the American way.

We do not help any business or any individual by saying “Go ahead with your bad management, bad practices, bad ideas, bad habits and bad organization because if you can’t make it like that, we’ll just take the money from all those around and get you a check. Who said “from everyone according to their ability to everyone according to their need?” It was Karl Marx. It was a bad idea when he was passing the idea around to those who would become leaders of communist countries, and its still a bad idea.

When someone does not have to be responsible for themselves, it just makes them weak and enables them to continue making bad decisions. A very wise man said one time that people change when “they get enough information, or they become uncomfortable enough in the position that they are in, so much so that changing becomes less uncomfortable than staying the way they are. Companies are the same way. Are you listening GM?