Brad's Tiny World

Time To Die

Posted on 30. Mar, 2009 by Brad in Economy | Twitter: @bradhart |

I have decided that in no uncertain terms it is time for the government to pull the plug on GM.  Early this morning, General Motors CEO Rick Wagoner announced his resignation as part of the bailout package.  This is the last straw he is out and we have no one with the experience of successfully running a multibillion dollar corporate conglomerate to take his place.  Putting an inexperience person in his place won’t do, and probably would be a lot worse.  The death spiral has begun.

It isn’t that I don’t feel for the average GM worker, even most of their white collar workers who aren’t responsible for this mess.  I do care about these people’s well being and think we need to take care of them, even the ones who aren’t Americans.  We need to step in close the company, and pay off the employees.  I say we start with a base of $30,000 and add $10k more for every year an employee has worked for GM, which means the executives will get less than most hourly workers.  I say from the corporate assets also give each employee a car equivalent in value to the number of years they have worked for GM, again most hourly workers will end up better than executives.

In exchange for this buyout employees will accept be allowed to cash out any GM stock in their 401k’s or other retirement accounts at a fixed amount without a tax penalty, but otherwise will not be allowed to seek recompense for other retirement benefits owed them by GM.  For those without significant holdings for a tax offset to matter a portion of a student loan can be paid off or a straight cash settlement can be offered.  Unemployed GM workers will also be given first priority for half of the cleanup jobs that go along with the plant closings.

Non American GM employees and subsidiary will be affected and need to be taken care of too.  Foreign workers of GM will be give a straight cash settlement which will be a pittance compared to what the American workers get, but will leave them in good standing as well.  Call it $5000 each, which in most cases is a couple years salary by local standards.  Dealerships will need financial assistance to stay afloat, otherwise can apply for the government to buy their stock of GM cars and a straight pay for the forced loss of a franchise business, say $100k for each GM line they carry.  That is less than they paid in most cases, but more than they will get when GM goes under on its own.  Parts manufacturers should receive tax relief and loans if they have a viable chance of retooling and staying in business.

I even have a decent plan for what to do with the vehicles the government will be forced to buy up.  The  passenger cars can be turned over to municipal and county agencies to provide a shuttle fleet in areas with poor or no public transit.  The trucks and where necessary other vehicles can be handed out to the National Parks and Forestry since they are no doubt getting the short end of the deal on most other budget proposals and a fleet of new vehicles will reduce their operating costs.  Last, but not least, the sports cars and high end luxury cars, not used as fleet vehicles, can be auctioned.

In the end this is the only smart thing to do.  Continually dumping good money after bad can’t be allowed to continue if we are ever to climb out of the financial whole forty years in the making.

Tags: Age, America, American, Art, bailout, bailout package, bankruptcy, bill, BS, car equivalent, Cars, CEO, Clean, cleanup, Employment Change, Executive, forty years, General, general motors, General Motors Corporation, job, jobs, plan, Rick Wagoner, sista, sports cars, star, USD, Wagoner