Automakers

The three big automakers are certainly going through a very tough time. So bad in fact that Nancy Pelosi and Harry Reid as well as President-elect Obama want to bail them out of their woeful ways with a bridge loan (I am working on the odds of an actual payback now) of $50 Billion. Why the generosity? Let's have a look.

Could it be because there is a long love affair between the democrats and the big three? Unlikely. The dems have been shoving all kinds of regulations as well as cafe standards down their throats for years. The only time that the left is polite to the auto industry is when they are being provided their complimentary limo's.

I think that the more likely answer lies elsewhere. The fact is that the big three American automakers haven't kept up with the times. They produce cars that we don't want to buy. The CEO's and other high level management are raking in huge paychecks. But the major problem with the auto industry is organized labor.

Organized labor has been bankrolling the democrat party for years. Up to now there hasn't been the big payback they have been looking for. Along comes Obama and the democrat led congress. Union membership is at its lowest levels since WWII. That means dues are down as well. Union dues fell to $169 million for 2007 from $191 million the previous year. The dems need to stop the bleeding and help the unions increase their membership, and in turn the contributions from labor to the DNC coffers. That is why Obama is a proponent of the poorly named Employee Free Choice Act, which will eliminate secret union ballots and allow the union bosses to strongarm employees into joining their ranks.

With the bankrolling of the automakers using taxpayers money, the dangers of either of the three filing for bankruptcy is practically non-existent. If the automakers were to file for bankruptcy, all union contracts would be null and void. The current union members average pay stands at about $40 per hour. That ain't going to happen again. Also, the billions of dollars that the automakers have set aside for healthcare for all qualified retirees and former workers, would be put back in play for the restructuring of the company and thus lost to the unions.

I don't see any way to stop any of this from happening. The dems have the votes to pass this after January 20th of next year.

Elections have consequences. Think 2010.