If you think the GM and Ford problems are unique to them, George Will shows otherwise:
Joseph Tanner, who became city manager after this municipality of 120,000 souls was mismanaged to the brink of bankruptcy, stands at a whiteboard to explain the simple arithmetic that has pushed Vallejo over the brink. Its crisis — a cash flow insufficient to cover contractual obligations — came about because (to use fiscal 2007 figures) each of the 100 firefighters paid $230 a month in union dues and each of the 140 police officers paid $254 a month, giving their unions enormous sums to purchase a compliant city council.
So a police captain receives $306,000 a year in pay and benefits, a lieutenant receives $247,644, and the average for firefighters — 21 of them earn more than $200,000, including overtime — is $171,000. Police and firefighters can store up unused vacation and leave time over their careers and walk away, as one of the more than 20 who recently retired did, with a $370,000 check. Last year, 292 city employees made more than $100,000. And after just five years, all police and firefighters are guaranteed lifetime health benefits.
Even the City Council has at last faced facts and voted 7 to 0 for bankruptcy. “The day after they voted,” Davis says, “I didn’t go out of the house — I was that embarrassed.”
The full article shows how unions, mixed with a city of liberal policies, is bankrupting Vallejo and is in the process of bankrupting many other cities. The full article can be found here.
Meanwhile, economist Arnold Kling shows how unions are doing the same thing in his state. See here.
Want to see how greedy corrupt executives lead the country to near bankruptcy. One week after the government gave AIG $85 billion dollars of bailout money, the greedy bastards spent over $402,000.00 at a resort playing golf, spa treatments, dining and drinking. This was the first thing Obama mentioned in his debate but the media has yet to publicize this fact.
And to add insult to injury the executives of the bankrupt AIG walked away with millions of dollars.
http://oversight.house.gov/story.asp?ID=2213
http://oversight.house.gov/documents/20081007102513.pdf
Frank- didn’t the government gave AIG a “loan”? It seems like you are getting a little ahead of yourself to declare that it is a bailout when it is not. Only time will tell us if they are capable of actually paying it before it’s labeled “bailout money”.
BTW, I’m with you on the disgust that executives are spending all that money on lesiure.
I have to wonder if something can be put in place to keep executives from serving in more than one public traded company board or CEO position. I get the impression that these set of characters are in that good old boys club of “hooking” each other up with high compensation packages. Anyone else have thoughts on this?
Hey just found your blog and I love it! It’s a lonely world out there for Republican Hispanics, keep our voice alive!
-Claudia