Spring Break
Save tax dollars for the future
Issue date: 6/2/09 Section: Forum
Not everyone drives a General Motors car, but GM's filing for bankruptcy will send shock waves around the nation. There is much to be debated about the intricacies of the Obama administration's plan, but we feel that massive government intervention into a failing company creates a poor environment for the workers of tomorrow, and in this economy, that isn't a good thing.
Economists and public policy officials can debate this topic with the expertise of their fields, but we have our own point of view.
Yesterday, GM filed for bankruptcy, and because of this, seven GM plants are up for closure in Michigan, Ohio, Indiana and Delaware. As many as 21,000 employees could soon lose their jobs.
The federal government will now "own" 60 percent of the company in its restructuring period. The federal government has already spent $20 billion on GM, but will now spend another $30 billion to cover the post-bankruptcy restructuring.
This not only has implications for GM employees, be they factory workers, car salespeople or engineers, but for bondholders as well.
Many see this bankruptcy as the fall of the old American way of life. And yes, it is, but GM has been suffering for a while. GM currently holds only 20 percent of the share in the auto market, and had stock value of 75 cents per share last Friday. Not good.
Bankruptcy laws and investor information may for many of us seem over our heads. However, we do know this: Many of us are young, and within a few years, we will be out in the working world, OSU degrees in hand.
We want the economy in which we will be working to be dynamic - one in which successful companies thrive and poor-performing companies die quickly and painlessly.
We want the federal government to intervene by coming up with a financial safety net for America's workers so when monolithic, outdated corporations simply go out of business, there is no scrambling to save the workers of these companies while leaving those who are still poor out in the cold.
We want to enter a working environment in which we are not forced to pay enormous amounts of federal taxes for the spending of yesterday and today, taxes used to assist debt-ridden companies.
We do not hold doctorates in economics. But we do know that when it comes to the economy and free markets, things are always changing. Businesses open and close, and jobs are gained and lost on a daily basis. GM was a powerhouse for many years, but now it no longer is. So be it.
Let's hope the Obama administration focuses on a way to create a brighter future for the workers of today and tomorrow.
Editorials serve as a platform for Barometer editors to offer commentary and opinions on issues both global and local, grand in scale and diminutive. The views expressed here are a reflection of the editorial board majority. Disagree? E-mail a letter to the editor or guest column to editor@dailybarometer.com.
Economists and public policy officials can debate this topic with the expertise of their fields, but we have our own point of view.
Yesterday, GM filed for bankruptcy, and because of this, seven GM plants are up for closure in Michigan, Ohio, Indiana and Delaware. As many as 21,000 employees could soon lose their jobs.
The federal government will now "own" 60 percent of the company in its restructuring period. The federal government has already spent $20 billion on GM, but will now spend another $30 billion to cover the post-bankruptcy restructuring.
This not only has implications for GM employees, be they factory workers, car salespeople or engineers, but for bondholders as well.
Many see this bankruptcy as the fall of the old American way of life. And yes, it is, but GM has been suffering for a while. GM currently holds only 20 percent of the share in the auto market, and had stock value of 75 cents per share last Friday. Not good.
Bankruptcy laws and investor information may for many of us seem over our heads. However, we do know this: Many of us are young, and within a few years, we will be out in the working world, OSU degrees in hand.
We want the economy in which we will be working to be dynamic - one in which successful companies thrive and poor-performing companies die quickly and painlessly.
We want the federal government to intervene by coming up with a financial safety net for America's workers so when monolithic, outdated corporations simply go out of business, there is no scrambling to save the workers of these companies while leaving those who are still poor out in the cold.
We want to enter a working environment in which we are not forced to pay enormous amounts of federal taxes for the spending of yesterday and today, taxes used to assist debt-ridden companies.
We do not hold doctorates in economics. But we do know that when it comes to the economy and free markets, things are always changing. Businesses open and close, and jobs are gained and lost on a daily basis. GM was a powerhouse for many years, but now it no longer is. So be it.
Let's hope the Obama administration focuses on a way to create a brighter future for the workers of today and tomorrow.
Editorials serve as a platform for Barometer editors to offer commentary and opinions on issues both global and local, grand in scale and diminutive. The views expressed here are a reflection of the editorial board majority. Disagree? E-mail a letter to the editor or guest column to editor@dailybarometer.com.
Note: writers will not reply to comments.
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IRS Representation
posted 9/28/09 @ 7:34 PM PST
GM was focused on profiting from finance, it did not really care that much about building better vehicles. GM's management failed to adapt GM to changes in customer needs, upstart competitors, and new technologies. (Continued…)
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