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Wednesday, November 12, 2008

A New View On the "Buy-outs" - Evolution to Total Socialism

Probably few, in the short run, will acknowledge it but eventually the hard lesson will be learned that union power has essentially charged American business out of business.

Employers are, for all practical purposes, held hostage to the unions. Unions demand maximum wages and the demands are enforced by strikes or threats of strikes. To the employer the message is: "Pay up or we shut you down" - through the mechanism of the "strike."

The employer has two alternatives - go out of business or accede to the demands of the unions. So the employer knuckles under, the strike ends and production resumes.

The problem, then, is that the product price is so labor intensive and labor expensive that products become so high priced that the company cannot compete with, for example, foreign products produced by cheap or at least less expensive labor. Any number of citations could be listed - virtually nothing is "Made in America" anymore - but, for example, we look at the most current problem, namely, the automotive industry. Vehicle sales have dropped so severely that the manufacturer will either collapse in bankruptcy or have to be bailed out.

So, the unions having killed the "Goose" that laid the golden egg - namely the private enterprise employers that paid their wages and salaries, turn now to the only entity large enough to "bail out" the auto industry, namely, the "federal government" through its ability to raise the "bail" money by way of laying the labor burden upon the taxpayer. That's you and that's me.

The problem is not that the American product is not good but rather it is too expensive to compete price-wise. But to cover their tracks the unions find fictitious causes to blame private industry - "they are producing vehicles that people don't want so buyers are turning to foreign manufactured vehicles." Not true - buyers are turning to foreign products because they are produced by labor that is less expensive and the resultant end price is less.

The back of the private enterprise system has been broken and now the larger resource base becomes the taxpayers by way of the federal government. The Unions having killed the capitalistic free-enterprise system now turn to the socialism of the federal government bail-out in which the government essentially buys out the industries by way of the so-called bail-out and the government becomes the essential employer.

The end result is socialism - and socialism never works wherever it has been tried.


Anonymous said...


freedomwriter said...

You sound incredulous of my analysis Anonymous. If I am wrong "educate" me. I'm receptive!

Angie Smith said...

Employers have been held hostage by the unions, the automakers are ready to collapse and the unions are looking to the government to bail them out. Their excessive demands for wages and benefits have made the cars too expensive to buy. They have the same mentality that those liberal illuminatis in Washington have--bail them out and give the taxpayers the burden to carry. Those lame-brains can afford this bailout on what they make, but the rest of us with moderate incomes will struggle heavily. I say let the jerks go bankrupt. That should be the only option.