Can Chrysler Survive

Chrysler may not survive even with the bailout money. It could be absorbed by another company. Speculation was that GM might be interested in merger, but GM denied any interest in consolidation. One unique solution might be for Chrysler to become an employee-owned corporation which has proven fruitful for a steel company and airlines. I wonder if the new employee-owners if this happens will be as concerned with the generous pension and health care benefits of their retirees as they demanded the company be in its previous incarnation. Will there be a large labor pool where laid off employees still collect 80% or so of their salaries? Not if the new owners want to stay in business.

Bad Management Practices

Obama reveals himself once again today to be the enemy of the capitalist economic system that has allowed America to flourish. He said he supported the $17.4 billion bailout of GM and Chrysler but wanted them to reform "their bad management practices". This places the entire onus of the companies' difficulties on management. The executives running the car companies have certainly not been sterling, but Obama, who has absolved labor which commands a much higher salary and benefit package than their foreign-owned competitors and who have demanded and received (some might say extorted) pension and health care benefits which simply make the companies unsustainable, is not credible. Obama will be the greatest ally labor has ever had in the White House, but measures like the Card Check Bill which will end the secret ballot and create nothing but closed shops will be the death knell of industry and cripple private enterprise in the US. Open shop and right to work states will have no meaning and unemployment will soar. Walmart which has advanced prosperity and literally saved consumers billions will be forced to unionize which will engender enormous increased cost of operation which will have to be passed on to the customers. Obama's economic plan will take America from recession right into depression.