Let GM Fail!
Why can we not let people fail? In the past it was ok to fail. You start up a business, it’s a success; then you screw up and you fail. You learn from your failure and start again.
What does saving GM at the tune of $1.4 Million per job do? What do we learn from this failure?
NOTHING! SFA! Zip, nadda, nothing!
It is going to cost the taxpayer, not the government, $1.4 million per job saved. $1.4 million to a failed company rewarding failure.
Here’s an idea, give each worker of GM $1 Million to never go into work again. Period! Here’s your cheque, get the “eFF” out.
What would a now unemployed GM worker do with $1 Million dollars? Invest in the economy, start a business, save for the future. The options are endless.
- Older workers would retire early and use the money as their nest egg to retire on.
- Middle Aged workers would likely invest for retirement and be able to live comfortably on the money with another, lower paying job as well.
- Younger workers would likely invest in starting their own business.
- Idiots and stupid people will just spend the whole amount as soon as they get it buying stupid things they cannot afford. Six months later they’ll be at the pawn shop selling the last of the stuff they bought to get a pack of smokes.
All four options are viable and needed:
- The idiots and stupid people will put an immediate cash infusion into the retail marketplace.
- The Younger People will create small business which stimulates the near-term market.
- The Middle Aged will have security in their future, will probably spend some money down the road and take lesser paying jobs in the market now, not having to cover all of the expenses they had in their family when they worked for GM.
- The Older Workers will spend short and long term as they will enjoy their retirement, travel, spend and for any end of life health care, the cash can be used there too which promotes stability in our service industry.
Stop me if this makes too much sense.
Lets take this one step further with a side-track. I’ve always been a train-geek, it goes partly with being the son of a railway employee and having lived around trains for 31 of my 33 years. My particular interest is in a railroad called The Rutland. The Rutland died in 1961 during a general strike on the line over wages and work rules. In 1962, the company petitioned and was granted permission by the US Government to abandon the line from Northern New York state across into Vermont and down the west side of Vermont. Parts of the line was sold, all of the equipment, real estate and even scrap material was sold. In total by 1965 the parent company had received $8,000,000 in income from the scraping of the line. If the railroad had received all of the concessions that they wanted from the strike and the railroad had survived, in 1965 they would have likely made about $350,000 in income after expenses. In this case the whole is not worth more than the sum of its parts, and neither is GM.
If you take GM as its parts and sell it off after paying off the workers to never come into the company again, you have incredible amounts of scrap, cars, plants, real estate and technology that in the end is worth more separately than as a whole. Look at the tentiave deal for Magna International to take over GM Opel Europe.
If you part out the good parts of GM to other companies, and then scrap the plants and buildings from what is left over and is not useful you should get enough money to clear the debt and possibly even pay for all of those $1 Million Dollar cheques.
Not a bad idea, too bad it would never fly. Common sense and government does not go hand-in-hand.
Wise Words from a Wise Man
“You cannot bring about prosperity by discouraging thrift. You cannot strengthen the weak by weakening the strong. You cannot help the wage earner by pulling down the wage payer. You cannot further the brotherhood of man by encouraging class hatred. you cannot help the poor by destroying the rich. You cannot keep out of trouble by spending more than you earn. You cannot build character and courage by takening away man’s initiative and independence. You cannot help men permanently by doing for them what they could and should do for themselves.”
Abraham Lincoln
GFYS GM, Ford and Chrysler
Filed under: Government, Money, News, Ontario, Politics
The big three automakers in Canada are holding their hands out for money from the Canadian Government. In order to “save” 100,000 jobs in Ontario, they want billions in loans. In my opinion, the big three can GFYS!
No WAY should any corporation, large or small, get a bailout with tax money. The automaker’s issues are their own. THEY kept building SUVS when the market didn’t support it. THEY gave credit to people who didn’t earn it. THEY caved into the unions when it came to wages. THEY gave their executives large bonuses while THEIR companies tanked. THEY created THEIR own problems.
THEY should have to fix it.
If I run a business and manage it so poorly that it’s going bankrupt, but I employ two workers, would I get a handout from the government? No. It would be said that I should have run the business better and that I would have to deal with the consequences of my actions. So too should GM, Ford and Chrysler; Really so should they all. The banks that are getting 50 billion in mortgages bought from they by the federal government when they didn’t ask for it. The banks don’t need the buyouts, and they are not passing the savings onto their customers.
All levels of Government, federal and provincial should be looking at ways of getting the private sector to boost job creation, not handing out money to companies that have shown they are irresponsible with money. GM lost 15 Billion in 3 months and they get a handout!
So much for responsibility!
LCBO Sucks
Filed under: General, Government, Money, Ontario, Politics
The Liquor Control Board of Ontario Sucks! I tried to purchase a very specific brand and vintage of brandy for a friend. The LCBO said they don’t carry it anymore and could not order it for me. I found in New York State a liquor store that would get it for me, but only if I order a case. Asked the friend, they said go ahead so I did. On friday I hopped across the border to pick up the case and bring over. Like a good boy, I declared what I had when I was at Canada Customs, then the fun started.
The case cost $268.00US. After GST, PST, Duty and LCBO Markup, I was out an additional $343 on top of the 268 for the case. WTF!
Now I don’t mind (ok I do) the GST, PST and Duty but come on LCBO Markup? The LCBO Markup was 202 of the 343 I paid. For what? THe LCBO did not get the hooch for me. The LCBO did NOT order the product or help in getting. The LCBO did nothing to help other than the person on the phone suggest buying in NY State!
So for the LCBO’s efforts, they earn $202. No wonder the LCBO is raking in record profits!