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I wanted to offer a few thoughts on the auto industry bailout. I think they should let the US auto industry go under. It will bust up the United Autoworkers Union and invigorate innovation.
I realize many people will become unemployed in the short-term, but the long-term prospect is good because new or more efficient automotive companies will come in, buy up some of the assets (the valuable ones) and re-invent the American auto industry by leveraging automation and supplying cars people demand. Moreover, they will do it at a much higher level of quality.
I do not favor unions. In the case of the United Autoworkers Union, they are too intrusive in managing the industry. It seems to me a union worker does not possess the same level of respect and pride for the company or the consumer, as a non-union worker. Unions are like welfare, they create a sense of entitlement, which is non-productive thinking.
When the union dictates to an organization how many people can be hired and fired; and when a union dictates to an organization that they can only use automation if there are no jobs lost — thus negating any cost savings to the company — it is time for the union to take a walk. The key is to get the union out of management’s wallet. Management needs to be free to make decisions about what is in the best interest of the company. A reasonable manager will take into account the employee’s needs, because such actions foster moral throughout the company. At the same time, every worker knows if the company cannot survive because of payroll gloat, then the entire company will go out of business, dragging every person down with the ship.
So, let the US auto industry go bankrupt. Let them shutter their doors and make way for more innovative and better-organized companies who are free of union dictates.