We should not be afraid of a liquidation bankruptcy of GM. We should embrace it.
Half the problem with our economic system is that we have not allowed poorly structured and run companies to fail. Letting GM be liquidated would send a very strong signal to corporate America. Coddling it with tax breaks, tariffs and protectionist legislation for decades is exactly what got it into this mess--not the UAW.
The US worker is the most productive in the world by a significant margin, yet has seen a continuous slide in the constant dollar value of pay and benefits, even as the managers and executives have exploded their compensation even as they railed against the "excessive" compensation of the hourly workers that actually create the product that pays all salaries in a manufacturing company.
The only way GM should be bailed out would be contingent on the CEO, chairman and entire board of directors be fired along with every vice- president, brand manager- period. No severance--simply escorted to the door with a box in their arms on live TV in front of the public. Banned from the management of American business for life.
David A. Gregory
Nov 29 2008 - 4:42pm