Friday, December 12, 2008

Amazingly blatant class-war in progress. Republicans wouldn't allow US Congress to bail out the US car companies because the Unions wouldn't accept a pay cut.

What the FUCK!!!!!?

This is VERY different from putting a cap on bonuses to senior managers in the financial institutions that were bailed out.

In a real sense, the financial managers and traders were largely responsible for the economic crisis in the first place. They were making the bad investment decisions without understanding or taking seriously the risks. There's a real moral hazard issue if you reward them after they took on those risks. NOT because you want to punish them, but because you want their personal incentives to align with the reality of the work they do.

In the case of the employees of the car companies we're talking about ordinary employees that are simply getting paid the wage they (collectively) negotiated with their employer. Here the Republicans have allowed their agenda (of disliking Unionized Labour) to influence whether they think the US car industry should be supported.

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