The Auto Industry

12 06 2009

I do not like the fact that the government has butted its nose into the auto industry.  Since when did the government have any right to tell any manufacturer how to run his business.  Frankly, I did not know that politicians knew anything about running businesses at all.  Most of them have never done anything like that in their lives.  What gives them the right to tell a business owner how to run his business, no matter what that business might be.

A business owner is in business for only one reason. It is not for his health, nor for his social stature, nor just to have something to do with his life.  A business owner is in business to make money.  Period. And he has to learn how to run that business so that it makes a profit which will allow him to make some money to put in his pocket.  He has the same desires as every other human has.  He wants to make enough to provide for his family.  That means to buy his children clothes, put them through school, put enough groceries on the table every week, and have a decent home in which to raise his family.   And of course he pays an inordinate amount of taxes to the government just for the privilege of working 24 hours each day trying to stay in business.

If he really watches his finances, he might even make enough to take a vacation this year.  After all, all his employees do just that. They all make enough to provide for their families, put groceries on the table and have a decent home in which to raise their families, plus vacation time, sick leave, etc.

Now I am not talking about those bonuses we have all read about recently.  That is pure greed.  We all can recognize that.

But I am talking about the average everyday small businessman.  He wants to provide a good income for all his employees.  In return, he wants them to give him a day’s work for a day’s pay.  Simple as that.

With the automakers, the government is wanting to tell them how to run their businesses, how to manufacture their automobiles, and how to provide for their workers.  Providing for the workers is and has been the major problem for quite some time.  Every time the union goes to the bargaining table, they quite obviously are not going to say, ‘we have enough this year and are very happy with our arrangements with you, so we don’t need to ask for anything new this time.’   Instead, they all get together and decide just what they will ask for each year.  It might be more benefits, more retirement, more salary, more insurance benefits for their families, etc. etc.  But you better believe they are going to be asking for something.  Having been involved a little bit in seeing this done over the years, I can tell you for sure that it is like wishing for the moon.  Whatever we can think of this year is what we will ask for. And they do all this with a straight face as though it is expected of them.  And of course it is.  Everyone knows they are going to think of anything and everything they can.

Obviously, the price of autos and trucks cannot continue to go up to cover these new requests.  Eventually, the auto maker and his dealers will be out of business because people will buy a cheaper car.

My father was president of his union and was involved in all the negotiations every year for new contracts.  He was a printer by trade and their answer to the owners of the papers was that they could just raise the price of the newspaper which would cover all their new benefits.  But after he got involved in the management field many years later, he said how stupid that remark was.  That the owners of the newspaper could not just simply raise the price of their product.  People would not buy the paper if they did that.  The paper would eventually have to shut down and then all would be without a job.

Same way with the auto manufacturers and dealers.  They can’t just keep on raising the price of the product in order to fill the union’s requests.  So eventually, the union will price themselves out of a job.  That is what has happened today.  Some of the retired auto workers make as much or more money in their retirement years as they did when they were working full time.  This is ridiculous.  And this costs all of us because the prices of the autos reflect what it costs for the manufacturer to try to stay in business.

So today, the union is balking at requests for change.  They still want it all, whatever they can think of today.  Instead, I guess they are wanting to price themselves completely out of the picture.  The manufacturers will eventually have to file bankruptcy which will mean fewer jobs, less benefits for all, etc.

What is the point?  Why not work for a reasonable wage, the expected benefits of vacation time, sick leave, insurance, some retirement, and then give a full day’s work for a full day’s pay.  This is all any of us should want or need.  This just tells the story of the auto manufacturers today.

But what about the small businessman.  He is in the same place, only on a smaller scale.  The worker should not demand more than the businessman can pay.  The businessman is not out in the world to see how many people he can hurt.  He only wants to make money in his business, provide for his workers on a reasonable scale, build his business, and provide for his own family.

Why is the government  sticking their noses into the business world in the first place.

Vote Republican next time around.  And watch the economy grow and prosper when you give the people their own money back and everyone has a chance at a decent job – if they want to work.  That seems to be the major problem here now.  How many of those who do not want to work are we providing for today.  Too many.



One response

13 06 2009

Hi I think this is a fantastic blog, keep up the good work…

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