Why Did Romney Want The Auto Industry To Fail???

GM = Government Motors

 

Right on! Let's win that race to the bottom! We don't care about Middle Class families! We just want everyone to realize that earning less means someone richer gets to keep more. And that's the important thing. Because a rich guy will "create" jobs. So what if those jobs pay poorly? So what if you cannot afford a mortgage, monthly bills, health care, retirement savings, college tuition or anything else? It's a job. Add two or three to your day and carry on! After all, iof the rich ain't getting richer, what's the point?

 

Fundemental Change , that's ^^ what Obama wants. you hit the nail.

 

You can't seriously think that, "earning less means someone richer gets to keep more?"

Anyway median incomes have dropped more in the recovery than they did in the recession. It's this recovery that's killing the middle class.

 

So what if you can't afford an American built car because their employees are overpaid. Oh wait...

 

Non-variable fixed costs of labor per unit production of America's 3 majors is roughly $ 1,500. In contrast, Toyotas produced in America have roughly $ 220. This is due to overhead of unfunded pension plans.

Governor Romney argues that a structure bankruptcy would have virtually allowed the same reemergence, but with a leaner balance sheet that would have truly leveled the playing field with domestically produced toyotas. The government bailout, from the taxpayers, essentially allows GM to continue producing vehicles without responsibility for the overhead allocated to the retirement pensions. Had a structure bankruptcy occurred, those pensions would have remained intact. The difference would be labor force transition, where older workers would have been encouraged to retire. That way younger workers (cheaper Health Insurance Coverage) and lower wages would have paid for the unfunded liabilities.

The issue with the $ 1,500 aforementioned is the money Toyota does not spend towards pre-production fixed non-variable costs can be allocated to R&D or by simply offering better products $ 1,200 cheaper.

The Big 3 did not go bankrupt, but many of the parts providers did and came out leaner and more competitive. Letting the bankruptcy take its course wouldn't have screwed the workers, it would have paid out the Bonds & Senior Secured Debt (or refinanced it), but the EQUITY (MARKET CAP) would have been washed. That's how capitalism works.

 

For the same reason that Republican operatives got Citizen's United put in place, for the same reason that Scott Walker went union busting after the unions made the concessions that were asked for.........

Because organized labor supports Democrats.

 

Where did you come up with that conclusion, it is not what he said. He said that they need to restructure their debt and fix their labor issues. You can't manufacture a car with$75/hr labor and sell it to someone making $10/hr. Auto labor is semi skilled at best. Get your facts straight next time.

 

Well if we are going to talk about facts, it is the pensions that are killing these companies, and governments.

Funny thing about that, I work for a company with 3rd generation legacy costs, and our pension still makes money, because it was properly managed, and the company investments into the fund were actually made, and not put into risky ventures.

The idea that pension funds naturally dried up, is one of the biggest lies in America!

 

Can you please define the middle class for us? are they the government employees who are given guaranteed pensions? Does it include people in the private sector who pay for those pensions, but dont get one themselves?

How do you think most rich guys get rich? They SACRIFICE their time learning how to do something extremely well, and then take their knowledge to market. They often work 70-100 hr weeks, with very little if any pay, work nights, holidays & weekends. IT TAKES EFFORT. This opportunity exists in America like nowhere else in the world. If you dont like your station in life, GET UP AND DO SOMETHING ABOUT IT!! The damage created by the progressvie philosophy is frighteningly evident on this board. Progressives love to talk about shared sacrifice - but its not shared sacrifice that they want. Its shared rewards that they want. Sacrifice is what happens when you decide to put all of your effort into something. If you're not willing to do that starting today, then don't come to me 10 years from now saying that i need to pay my fair share to you.