Truth Before Dishonor

I would rather be right than popular

Posts Tagged ‘austerity’

Next Big Collapse: The UAW?

Posted by John Hitchcock on 2011/09/24

The news is out. The UAW is in financial difficulty. Based on the reports, without major changes, the UAW could be facing bankruptcy within 5 years. From The Truth About Cars comes the news. (HT Tea Party Patriots)

What they wrote may not have been known in public. The Detroit automakers are well aware of the perilous state of the UAW. In the run-up of the contract negotiations with the UAW this summer, one automaker did what one should do before going into battle: Assess the strength or weakness of the adversary. In-house economists of a Detroit company came back with a surprising piece of intelligence: The UAW is hollowed-out and heading for disaster.

In many ways, the UAW resembles the companies it opposed for so long. The UAW is America’s richest union. One of its biggest assets is its strike fund, which stood at $763 million at the end of 2010. If push comes to shove, a union is as strong as its strike fund. The trouble is: The UAW spends more than it takes in. Increasingly, the union has to dip into the strike fund, the Reuters report says. According to government filings, the UAW liquidated $222 million of investments from 2007 to 2009 to cover the shortfall between expenses and revenue.

In 2003, the UAW funded 1 percent of its 325.1 million dollar annual operating costs via selling assets and investments.

In 2007, the UAW funded 6.2 percent of its 327.6 million dollar annual operating costs via selling assets and investments.

In 2010, the UAW funded 22.9 percent of its 274.0 million dollar annual operating costs via selling assets and investments.

Reuters reports the UAW Labor Bureau filings are the source of the above data.

It looks like unless the UAW practices some serious Conservative austerity (like that’ll happen), it’s going to fail. It couldn’t happen to a nicer bunch of anti-competitive business destroyers. Bless their little hearts.

Posted in economics, Politically Incorrect, politics | Tagged: , , , | 2 Comments »

Greece Is Collapsing

Posted by John Hitchcock on 2011/09/17

HT Smitty for the video.

Europe is starting to figure out the Keynesian religion is a religion of State death. Greece is going to default on its debt and I doubt any reasonable person will disagree. Greece’s massive Leftist handouts to everyone on the backs of the producers has created a system that was guaranteed to fail from the start. And now it has failed.

As Spain found out, a government-forced “green jobs” program (which happens to have Communist-red roots wherever it is pushed or mandated) is very, very expensive. To the tune of 2.2 other private sector jobs for each “green” job and untold debt placed on the taxpayers, who are now far less able to manage the debt since so many jobs were destroyed in the process of going “green.” As Spain also found out, a government-run health care system only works when the government is awash in cash; not when the government is awash in debt.

As Spain, France, Germany, Greece, England, other European nations found out, when a government runs out of Other People’s Money (OPM) and has to reduce the amount of freebies handed to the leeches (that is, Leftists) at the expense of the producers, the leeches riot, destroy property, and act like the prepubescent spoiled brat criminals they are.

But the American Liberal has not figured any of that out yet. The American Liberal is still trying to force the US down the path Greece took, expecting the results to be different this time. It failed in the Soviet Union. It failed in Cuba. It failed in Venezuela. It failed in China (which is why China opened the door partially to free market capitalism). It failed in all the European countries. It is failing in the US as well. But the American Liberal, in all his insanity, keeps his cranial-rectal inversion fully functional and continues to push for the selfsame things that are sinking the European Union.

Posted in Conservative, economics, Environmentalism, Health Care, history, Liberal, Personal Responsibility, Philosophy, politically correct, Politically Incorrect, politics, society | Tagged: , , , , , , | Comments Off on Greece Is Collapsing

%d bloggers like this: