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Tuesday, November 29, 2005

Unionized Welfare/Exec Greed Killed GM?

Although Americans are buying fewer GM vehicles, the hourly wages, bloated executive compensation packages, health and retirement benefits are running the company right out of business. A global economy will not allow a capitalist company to pay for its workers retirement and health care. Is this news that communism and socialism do not work in a capitalist system? Did the executives at GM go to business school? Regardless, American companies from airlines to auto are ditching these entitlement programs. Would you rather have a company that provides a job and pays or no company at all? We choose the former.

Our frustration is that instead of being the leader in moving aggressively towards the production of the next generation vehicle, fuel cell plug-in hybrid electrics, our auto industry is bankrupting itself by trying to be the Department of Health and Human Services. Faster, leaner, smarter companies will probably have to replace the old dinosaurs to provide dynamic company employment, environmentally sound technology and aesthetically pleasing products. Lead, follow or get out of the way. China and Japan might well be teaching us how to provide an efficient capitalist product.

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