Spot the Greedy Ones

Greed similar to that of monopoly-type industries exists in many areas outside of the automobile industry. Teachers unions, public sector employees, or corporations with monopoly-like powers demand benefits that others are forced to pay that they themselves will never have. Real class warfare involves not the wealthy but those protected by politicians.

When the Treasury sold some of “our” shares in GM recently and agreed to sell our remaining shares over a 12-15 month period, the expected loss on the GM bailout will amount to approximately $21 billion. The “poor” auto worker has been saved.

Concurrently, the perceived victory for the president in raising tax rates on those earning over $400,000 reinforced the emotional capital that he garnered with his victory in the election of 2012. Taxes on the “wealthy” went up as he demanded. Greedy rich people would finally pay.

Greed. Interesting word. In defining the plight of America as the “greedy” wealthy, the president has failed to effectively solve any of our problems at all.

In the 1970s, the nation faced a tremendous dislocation in the steel industry. The industry was not bailed out, yet the industry has rebounded since the bankruptcies of many in the industry. The reality of what triggered the steel demise is now apparent and multi-faceted with eerie parallels in the auto industry.

The steel industry refused or was unable to modernize effectively in light of emerging competition from overseas in the 1970s as America’s former wartime enemies emerged as formidable competitors. The industry rode the great successes that it enjoyed due to the “benefits” of being untouched by enemy destruction during World War II.


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