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Location: Pantego, Texas, United States

Friday, December 12, 2008

This morning before I went to the doctor to get the stitches removed from my latest skin cancer removal site I watched a news conference by the head of the UAW regarding the bail-out of Detroit car manufacturers. I said a few thing that were curious, but none of the reporters asked about them. First he blamed evil Republicans who he said refused to support the deal as payback for the UAW supporting Democrats in the most recent election. I suppose that could be true, and it is certainly the approach the noble Democrats usually take, working to their political advantage regardless of the national interest. It apparently never occurred to him that Republicans might oppose the deal on principle. He said the Republicans were trying to make the UAW accept pay cuts to get their pay in line with foreign manufacturers. Later he said that UAW members don't make as much as Toyota workers in the South. This inconsistency seems to have escaped everyone there. He also said in effect that people in the South were weasels because they had given tax breaks to foreign car manufacturers to locate factories in the South. He seems to have forgotten that many years ago back in the 1950's GM was given tax breaks to locate in Arlington, Texas. It was clear that he blames Republicans for the financial troubles of GM and Chrysler. He seemed to think it was good that the union is involved in the management of the car manufacturers in Detroit. I remember writing a paper back in 1956 when I predicted that union involvement in management would ultimately destroy the companies. My communist Prof gave me a D minus on the paper because of my immature thought process. He thought it would be better if the unions ran the companies. That is basically what we have with the current management of the Detroit Auto manufacturers, and it has obviously not worked out well. I do agree with the UAW that the upper management of the auto companies, as with many other industries in the US, are paid far to much compensation. This is particularly true of the huge bonuses that are based on short term results.

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