When Socialism Saves Capitalism

Nov 2005
76,560
10,255
Richmond Va
In my desparate search to find good in Obama, I ran across this.

When Socialism Saves Capitalism
By E.J. Dionne, Jr.
Have you noticed that one of the Obama administration’s most successful programs is also its most “socialist” initiative?
OK, the bailout of General Motors and Chrysler was not socialist in the classic sense: The government was not looking to hold onto the companies over the long run. Their turnaround was accomplished in significant part by tough, capitalist management steps.
But, yes, this was socialism—or, perhaps, “state capitalism”—because the government temporarily took substantial ownership in the companies when no one in the private sector was willing to put up enough capital to prevent them from going under. Today, the companies are thriving.
More than that: the auto industry exemplifies how unions can do their best to protect the interests of their members while also ensuring the prosperity of the companies that employ them.
This month, the United Auto Workers and GM reached a tentative four-year contract that will add or save some 6,500 jobs, provide workers with a $5,000 signing bonus and enhance a profit-sharing agreement.
Note that increase in profit-sharing. The union and the company are seeking to align the interests of workers and shareholders. The idea should be as American as a Chevy or a Ford: When a company does well, its employees should do well, too.
The UAW’s bargaining approach belies the notion that unions don’t care about the well-being of the companies whose workers they represent. On the contrary, the UAW made extraordinary concessions to keep the Detroit-based auto industry alive. Now, its members can fairly claim a right to some of the benefits.
“When GM was struggling, our members shared in the sacrifice,” said Bob King, the UAW president. “Now that the company is posting profits again, our members want to share in the success.”

Anybody have a problem with that?

 
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anonymous

Former Staff
Jun 2008
10,578
2,873
Passing Through
In my desparate search to find good in Obama, I ran across this.

When Socialism Saves Capitalism
By E.J. Dionne, Jr.
Have you noticed that one of the Obama administration’s most successful programs is also its most “socialist” initiative?
OK, the bailout of General Motors and Chrysler was not socialist in the classic sense: The government was not looking to hold onto the companies over the long run. Their turnaround was accomplished in significant part by tough, capitalist management steps.
But, yes, this was socialism—or, perhaps, “state capitalism”—because the government temporarily took substantial ownership in the companies when no one in the private sector was willing to put up enough capital to prevent them from going under. Today, the companies are thriving.
More than that: the auto industry exemplifies how unions can do their best to protect the interests of their members while also ensuring the prosperity of the companies that employ them.
This month, the United Auto Workers and GM reached a tentative four-year contract that will add or save some 6,500 jobs, provide workers with a $5,000 signing bonus and enhance a profit-sharing agreement.
Note that increase in profit-sharing. The union and the company are seeking to align the interests of workers and shareholders. The idea should be as American as a Chevy or a Ford: When a company does well, its employees should do well, too.
The UAW’s bargaining approach belies the notion that unions don’t care about the well-being of the companies whose workers they represent. On the contrary, the UAW made extraordinary concessions to keep the Detroit-based auto industry alive. Now, its members can fairly claim a right to some of the benefits.
“When GM was struggling, our members shared in the sacrifice,” said Bob King, the UAW president. “Now that the company is posting profits again, our members want to share in the success.”

Anybody have a problem with that?

Yea,yea, when is that socialism for the banks going to pay off? Hell, them bastards are planning another trip to the trough as we speak.
 

Jets

Moderator
Feb 2011
23,712
14,537
New York
The problem is that the bail outs should not have been put in place to begin with. I blame the Bush Administration for starting it. If a business does not succeed it should be allowed to fail. jmo.
 
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Babba

Former Staff
Jul 2007
78,111
69,991
So. Md.
The problem is that the bail outs should not have been put in place to begin with. I blame the Bush Administration for starting it. If a business does not succeed it should be allowed to fail. jmo.
Even if it takes the whole economy down with it?
 

Jets

Moderator
Feb 2011
23,712
14,537
New York
Even if it takes the whole economy down with it?
Businesses that need federal bail outs have already brought the economy down in the form of debt. Maybe if no money was guaranteed to them they would be more responsible and not get into financial dire straits to begin with.
 

Babba

Former Staff
Jul 2007
78,111
69,991
So. Md.
Businesses that need federal bail outs have already brought the economy down in the form of debt. Maybe if no money was guaranteed to them they would be more responsible and not get into financial dire straits to begin with.
Or maybe no business should be allowed to get so big that if it failed it could destroy the overall economy.
 
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