The Black Informant | African American Commentary, News and Community Building

Why the Auto Bailout Would Be a Big Mistake
John Stossel on Why the Big Three Don’t Deserve a Taxpayer Bailout

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“But wait a second, those jobs wouldn’t necessarily be lost. Bankruptcy isn’t death. Kmart didn’t disappear when it went bankrupt. Neither did Fruit of the Loom, Texaco, Continental Airlines, Delta, or United.

They were reorganized into more efficient, sustainable businesses. Out of this creative destruction new jobs emerged.

Toyota isn’t asking for a bailout. Neither are Honda or Nissan. Yet, they all sell and build cars in America. In fact, while the Big Three were begging for your money, workers at Honda celebrated the first cars coming off their new assembly line in Indiana.

Why can Honda do it, when the Big Three can’t? Well, Gettelfinger’s union is one reason. The Big Three have to deal with strikes.

The UAW even got the Big Three to create places where longtime workers who are not needed are still paid 95 percent of their wages to just sit. They wouldn’t allow us to videotape these so-called jobs banks, but Linda Swan saw them when she worked for Ford.

“For the most part our people just sit inside and do nothing,” she said. ”

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“Tens if not hundreds of thousands of jobs would be lost in the auto industry itself,” said U.S. Sen. Christopher Dodd, D-Conn.

But wait a second, those jobs wouldn’t necessarily be lost. Bankruptcy isn’t death. Kmart didn’t disappear when it went bankrupt. Neither did Fruit of the Loom, Texaco, Continental Airlines, Delta, or United.

They were reorganized into more efficient, sustainable businesses. Out of this creative destruction new jobs emerged. (more…)

And look who is pushing for the bailout?

Jesse Jackson plans rallies to support automakers

DETROIT: The Rev. Jesse Jackson said Friday he will organize rallies in several cities to urge Congress to grant aid to the struggling U.S. automakers.

“It’s time to go back to the streets for some action,” Jackson said after a press conference with minority suppliers and dealers. “We need to show the wealth and depth of pain. It’s not the Big Three execs, it’s the big 4 million jobs.” (more…)