It is a sign of the moral depravity of America’s political elite and the media’s complicity in their crimes that the widely accepted view of the US auto industry is that Detroit’s auto workers are paid too much, while everyone who benefited when financial charlatans ripped off America’s economy for trillions of dollars are taxed too much.
The media’s latest “heroes” are politicians like Bob Corker who demand that some auto workers accept “parity” with those who, he claims, make even less. Or men like Mitch McConnell, who said on the Senate floor, “None of us want to see them go down, but very few of us had anything to do with the dilemma that they’ve created for themselves.” These men are not heroes; they are scoundrels.
We are being asked to accept without thinking the perverted notion that “parity” is a moral principle that requires those who have earned and bargained for a decent share of America’s wealth be forced to accept the wages and benefits of those who live in states with discriminatory, anti-labor laws expressly designed to keep wages low. That notion will only ensure that workers never receive their fair share of the wealth they create for their domestic or foreign-owned companies.
Never mind that, as Jane and Marcy have pointed out, the specific claim of "dis-parity" is bogus here; the logic of "parity" is the same whether the lower-wage workers are in Tennessee, Alabama or Thailand. For the hapless workers on all sides, the principle means a race to the bottom that would warm the hearts and fatten the bank accounts of any 19th Century robber baron.
It does not seem to have occurred to our Government or our media that workers who produce things of value are entitled to a decent living, that they are entitled to a fairer share of the wealth they create for everyone else. Nor has it occurred to our elites that a principal reason our most productive workers even come close to receiving their fair share of the wealth they create for others is because of collective bargaining, even though the empirical evidence of lower wages and benefits is readily available in the laws and wage statistics of every state with anti-union laws.
Nor has it occurred to the moral midgets who lead and inform us that American auto companies have had decades of profitable operations. Their success played a major role in creating America’s middle class. US auto companies have generally been profitable except when America’s energy and foreign policies produced inevitable energy price shocks, or when the nation blundered into an economic catastrophe brought about by the corruption and greed of the financial industry and willfully abetted by the corruption and incompetence of the US Government.
Detroit’s “business model,” now so widely condemned by those who perpetuate a failed "government model," was not GM’s alone; it was, and still is, America’s business model. They made the cars and trucks we wanted, and we used our tax dollars to build highways and unsustainable credit schemes to build sprawling communities across America to show off our freedom. If they were blind, so were we. And if that model must now be radically reformed, we and our leaders must take collective responsibility for that task, not put it on the backs of auto workers.
Our government/media elite also need to be reminded, perhaps at the point of a pitchfork, that Republican notions of “parity” are rather selective; they were nowhere to be found when the President and an obstructionist Republican Congress denied health benefits to 10 million children and 40 million other uninsured Americans. And they were missing when deficient funding and new eligibility restrictions resulted in millions of others receiving reduced Medicare/Medicaid benefits, while Bush, Mitch McConnell and Bob Corker and their children are fully protected for life.
I fear we are living through the most morally corrupt era in my lifetime, but without a just god. Failing that, we should be hounding these thugs out of office and into infamy.





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Scarecrow! Wow! I agree completely…and was thinking about this when I woke up and it struck me. Why are Corker, Vitter., McConnell and Shelby insisting that the UAW and other unions roll back their benefits and wages to levcels in THEIR states. Why aren’t these Republicans fighting for their own working-class people for BETTER benefits and wages? Why are the taking the side of the Japanese and Korean companies?
Shouldn’t the process be instead that these non-union shops be compelled to allow unions? Or to, at the very least, bring their salaries and benefit levels up to those of the American-based Detroit automakers? That would benefit BOTH the people of Appalachia and keep millions of Americans in their jobs.
Ah, but that would mean real “parity,” and that’s not what these thugs mean.
“Why aren’t these Republicans fighting for their own working-class people for BETTER benefits and wages?”
Ha! you told a funny!
Elite Republicans, like Corker and Shelby, only care about their citizens when it comes to getting their votes. I checked newspapers in Nashville and Murfreesboro, and neither points out these issues, nor do they discuss the impact on the workers at the Chevy plant at Spring Hill, nor the impact on the State economy of the closing or any other issue of concern to the workers. There articles about the problems of retailers, but there is a total disconnect between these stories and the problems of workers.
digg
and reddit
Hmmm, could it be that Harry Reid didn’t want to force the plantation caucus into a real filibuster because it would have interfered with his own plans to zip back to Vegas for the all-important Oscar dela Hoya fight?
Just wondering.
i’m pretty sure this can be said about most elite Democratic politicians too. i watched levin’s so-called defense of the auto bridge on cspan thursday – he wasn’t even pretending to try. combine that performance with his years long lack of concern about the speculation driven increase in oil prices and i must conclude levin does not have any concern about the people of the state he is supposed to represent.
btw, i haven’t been on line much… has anyone been able to figure out where the fuck the union was in the “debate”? thanks.
You have to understand, the government and the media don’t care about what anyone’s entitled to or anyone’s fair share. People keep acting like everyone is just blind and stupid and missing the obvious, when the truth is, they’re just continuing to advance the corporate elite agenda. And the corporate media will keep getting it wrong, because it’s what they’re getting paid to. And as we gnash our teeth at their willful stupidity, we miss the point once again. It’s not that they don’t “get it”; they get it all too well. They just don’t care.
Did everyone see this?…
http://money.cnn.com/news/news…..789125.htm
Republican Senator Jim Bunning is feeling the fallout for voting against the auto workers!
Love it.
From various reports, including an intervieew from the labor guy, I gather the UAW was involved in the Corker-led discussions, agreeing in principle to adjust wages/benefits over time, but not agreeing to do so in 2009, since there are negotiations coming up the year after. Marcy’s has the outline. In other words, they did offer concessions, but when Corker et al described it on the Senate floor, he gave the impression that the UAW was the only stumbling block to a just outcome, but no other party was asked to commit to its “haircut” in the same period. Just picking this up from fragments so there’s likely more to the story.
“Parity”, of course, always has a target, and objects its promoters wish to move toward that target. For the GOP, the target is always the lowest paid workers, the fewest regulations, the lowest taxes, the least legal liability for wrongful excess. Misnamed the “free market”, that’s an active policy of immunizing the few by externalizing the costs of their behavior onto society at large. Whether those few floating at the economic top are cream o
Great article, Scarecrow. Your moral outrage at the inequities of our gilded age is right on target.
”Parity”, of course, always has a target, and objects its promoters wish to move toward that target. For the GOP, the target is always the lowest paid workers, the fewest regulations, the lowest taxes, the least legal liability for wrongful excess. Misnamed the ”free market”, that’s an active policy of immunizing the few by externalizing the costs of their behavior onto society at large. Whether those few floating at the economic top are cream or scum depends on one’s point of view, or one’s tolerance for accepting reality.
The language of parity is ”social Darwinism”, which is neither social nor Darwinian, thinly disguised. Like its predecessor from the 19th century, it is a rhetoric designed to justify and ennoble ruthless selfishness, to keep safe from challenge or retribution the politicians and laws they write that promote and enable such behavior.
I agree that we are at the most corrupt time in a century. We can be like Job, and trust passively in one’s god and hope for the best. Or we can be rational, and remind ourselves that hope is not a plan, hope is not a strategery, hope will not protect or promote our rational self-interest any more than buying a lottery ticket. It is praying that someone else’s self-interest magically coincides with our own.
Magic, I’m afraid, went out with Merlin and his once and future king. We still have, though, hucksters and charlatans of every variety who would tell us that the magic of an imaginary ”invisible hand” will cure our economic ills. Fool me once, shame on you, Bob Corker, fool me twice,….
Well said. “immunizing the few by externalizing the costs” pretty much captures a lot of what is happening.
Tumbrels ho! Break out the torches and pitchforks!
Agree completely and we need to label these class(less) warriors as what they are: enemies of the people who should be ashamed to show their faces in public.
thanks. i was wondering more about where the union was in making the populist case to the public. don’t they spend millions of dollars working to elect dems? why not the same level of effort to protect the workers?
i’ve got to go in a few minutes, but will check back later in case scarecrow or anyone else has any ideas on the missing union fight. i haven’t looked at the bill – was it possibly so bad that the union folks really didn’t want it to pass?
Thank you and well said.
Tangentially …. as I understand it AIG owed Goldman a lot of money. AIG got their big bail out and could pay Goldman off. Paulson was ex-CEO of Goldman. Cronyism with a capital “C”.
AIG had a big party/spa/seminar costing over $350,000 just after getting the taxpayer rescue. Then the pr guy apologizes and claims re-trenching takes time and they have learned their lesson and it was inappropriate …. yes-sir-ee-bob. Then shortly thereafter they have another lavish spa/seminar/whatever costing over $400,000. They tell the hotel staff to keep it a secret from the press. The press finds out.
Then I read this about AIG in WAPO yesterday:
Washington Post 12-12-08
Report: AIG Pays More Retention Bonuses
6:02 PM ET: AIG — the insurance giant that has thus far received $153 billion in bailout money and is 80-percent owned by the government — is paying retention bonuses to at least 2,000 employees, Bloomberg is reporting.
The bonuses equal one year’s salary, and employees were ordered to keep them secret, Bloomberg said.
AIG confirmed the bonuses to Bloomberg.
Retention bonus payments are common in troubled and reorganizing companies as a way to hold onto executives familiar with the companies’s operations. Enron paid retention bonuses, for instance.
Except in AIG’s case, the bonuses may be coming out of taxpayer money.
AIG has already been blasted for giving bonuses to 168 executives, with some getting as much as $4 million, AIG chief executive Edward Liddy told Congress last week.
Prior to that, AIG paid $440,000 for 70 top AIG contractors to spend a week at a California luxury resort — days after the company got its first $85 billion in taxpayer money.
In late November, responding to bad p.r., AIG said that Liddy would get $1 in salary through next year, salaries would be frozen and seven top executives would not get 2008 bonuses.
– by Frank Ahrens
I understand AIG is listed as one of the 10 worst companies in America in 2008. Yet is the Congressional poster corporation for bail-out reward on backs of taxpayers.
As Rachel Maddow says, “what an ethical freakshow” we are living in.
I don’t get any sense the union was holding up any bill that the Republicans would have supported. In the end, the Republicans could always deny the votes for cloture. Although there were 10 Repubs who voted for cloture, I suspect some would have switched if the Dems had all shown up to vote and made it close.
My concern now is that Bush/Paulsen will seek to reimpose on UAW, via the TARP funding, the same or more onerous conditions that Corker et al tried but failed to get the Dems to agree to. My theory is that Bush/Paulsen leaked to the Dems that they would use TARP, but impose even harsher conditions, if Congress failed, as a means to pressure the dems into negotiating with Senate Republicans. That would have made the Dems responsible for legislating parity on their own union supporters. Just speculation.
Corker’s sanctimonious smugness made literally sick. The rules of this forum prevent from me from speaking my mind about the Republican Senators in particular and the entire Senate in general. I was particularly impressed by the sense of urgency which was so apparent in the Senate when they knew the bridge loan’s fate was dependent on their action.
I think it would be difficult to use TARP funding to exact concessions only from one player. That would just be too overt, even for these thugs. TARP funding based on concessions from all parties makes more sense.
UAW website
http://www.uaw.org/
UAW:Paulson must prevent automaker’s “imminent collapse’
http://www.freep.com/article/2…..4/0/NEWS05
GMAC is not a bank under the rules for obtaining TARP money. The Federal Reserve won’t grant them that status.
http://www.upi.com/Business_Ne…..227211703/
Moral depravity. I guess there’s plenty to go around. I remember an old saying that goes, hold your friends close and your enimies closer. While the elitists rush to rearrange the deck chairs on the Titanic of our financial misfortune, the rats try as they will to stuff as much money into their greedy little pockets before the new wind blows into town. Or are there still some wolves in sheeps clothing hanging around? Case in point.
http://www.truthseeker.com
http://www.truthseeker.com
Madoff Ponzi Scheme Dwarfed by Illuminati Rubin’s
The arrest of financier Bernard Madoff Thursday for operating a “Ponzi scheme” costing investors $50 billion made the TV network news. Curiously, a lawsuit the same day against Clinton Treasury Secretary Robert Rubin for defrauding Citibank shareholders of more than $122 billion, also described as a “Ponzi scheme,” got no airplay whatsoever.
As we shall see, Rubin, a Director of Citibank, profited from the shady practices that destroyed the financial system and sent the world’s economies into a tailspin. Then, to repair the damage, he and his banker friends put the taxpayer on the hook for trillions.
Rubin didn’t get the same publicity as Madoff because of his close connection to Barack Obama.
Robert Rubin’s son Jamie was Obama’s main Wall Street fundraiser and is now one of his principal advisers. More significant, Obama’s economic team consists of Rubin’s proteges including Timothy Geithner, Treasury Secretary, Lawrence Summers, Senior Economic Adviser and Peter Orszag, Budget Director. The Times of London has already dubbed them the “Robert Rubin Memorial All Stars.”
Clearly, the media don’t want people to realize that the candidate of “Change” chose the people responsible for this calamity to be his “economic team.” While in the Clinton White House, Rubin, with Summers, helped tear down the regulatory walls between banks, brokerages and insurance companies and freed them to trade in unregulated and little-understood derivatives worth trillions of dollars.
THE LAW SUIT
In an article entitled “Ponzi Scheme at CITI,” the New York Post reported: “A new Citigroup scandal is engulfing Robert Rubin and his former disciple Chuck Prince for their roles in an alleged Ponzi-style scheme that’s now choking world banking.
Director Rubin and ousted CEO Prince – and their lieutenants over the past five years – are named in a federal lawsuit for an alleged complex cover-up of toxic securities that spread across the globe, wiping out trillions of dollars in their destructive paths.
Investor-plaintiffs in the suit accuse Citi management of overseeing the repackaging of unmarketable collateralized debt obligations (CDOs) that no one wanted – and then reselling them to Citi and hiding the poisonous exposure off the books in shell entities.
The lawsuit said that when the bottom fell out of the shaky assets in the past year, Citi’s stock collapsed, wiping out more than $122 billion of shareholder value.
However, Rubin and other top insiders were able to keep Citi shares afloat until they could cash out more than $150 million for themselves in “suspicious” stock sales” calculated to maximize the personal benefits from undisclosed inside information,” the lawsuit said.
The latest troubles for Rubin, Prince and others emerged in a 500-page investigation by Citigroup investors represented by law firm Kirby McInerney.
The probe was used to amend and add new details to a blanket investor lawsuit filed against Citigroup a year ago. The amended suit called the actions of Citi leaders “a quasi-Ponzi scheme” to hide troubles – and keep Citi stock afloat while insiders unloaded about 3 million shares between Jan. 1, 2004 and Feb. 22, 2008 for huge profits.
In addition to Citigroup, Rubin and Prince, the complaint names Vice Chairman Lewis Kaden, ex-CFO Sallie Krawcheck and her successor CFO Gary Crittenden.
Rubin cleared $30.6 million on his stock sales, while Prince got $26.5 million, former COO Robert Druskin got nearly $32 million and former Global Wealth Management unit chief Todd Thomson got $25.7 million, the suit said.”
They also push the idea that areas should get back in services the dollar-value equivalent to what they paid in taxes. It appears to benefit the wealthy areas more than the poorer areas, which makes it a convincing-looking argument, but it also hides that those areas that collect more in services than they pay in taxes are mostly minority and working-class/poor.
Sounds right. Still, one wonders what the geniuses who have been administering TARP think an appropriate set of conditions looks like. There are, after all, the folks who once also ran our financial system, and that’s not exactly a successful business model.
Another shoe is about to drop with a loud thud
Michael Pralle Since the onset of the credit crunch in late 2007, no signs of liquidity appear to be returning to the commercial real estate market. The duration and severity of the crisis has exceeded most expectations and led the International Monetary Fund to describe it as “the largest financial shock since the Great Depression.” Over a Trillion in mortgages will emerge as the nexr bailout…how much CDS is yet to be determined. The whole market is upside down unless you are debt free.
That weil be the reat of the story as the hits just keep on coming. Keep your powder dry.
The standards of Henry Paulson are wispy. I thought he would drive a hard bargain for the taxpayers in the bank bailout, as he would have as an investment banker, but nada. There are no rules, and there is no real effort to restructure anything. Why would we expect anything else under TARP?
The good news is that he only has $15bn left in TARP funds, so we can probably fix things with the next administration, if they have any better ideas.
Looks like hope is our only plan right now.
That’s it in a nutshell. They wear better suits nowadays but they are the same unctuous, self-righteous, hypocritical, thieving crooks who salute the flag and steal the country blind.
Good for Mr. Koester!
replyReply
TheLiberalCurmudgeon December 13th, 2008 at 4:31 pm
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Great article, Scarecrow. Your moral outrage at the inequities of our gilded age is right on target.
AMEN, AMEN. Thanks so much Scarecrow, for calling like it is, as always.
I’m so enraged by the Fed’s refusal to dislose details of $2 trillion in loans.
I am quite appreciative of the Obama “plan” of $1 trillion plan, assuming that it will help prosper those who’ve been raped for years. But then, the problem is with the Dems as well, and so can I really have hope, as one suggests above that hope is all we have.
I haven’t a clue as to what I can hope for anymore. I’m much more sure of what I can dread and fear.
But thanks, as always for your clarity empowering your outrage. I only have sputtering outrage and that gets me nowhere…
Blessings to all,
These are the same GOP Mensas who have now screwed over (mostly Repulican) car dealers all over the US, plus those dealers employees, parts employees, mechanics…. to say nothing of putting a death-grip on the whole NASCAR sport.
I think this will go down as one of the Top 5 Stupidest Political Moves since 1960.
And that’s really saying something.
The GOP has now painted themselves into the SE corner of the US, and I doubt they’ll hold that over the next four years.
I’m very late to this, but just wanted to complement you, Scarecrow, on your excellent post. I can no longer stand to hear a southern accent on television, and I have one. I guess the people of the southeast could rebuild the decimated U.S. garment industry, if they would just accept wage parity with workers in the northern Marianas.
Thank you Scarecrow for your rational words. When I hear the likes of Mitchell, Corker, and the corporate media running with their lies, dissembling, and cravenness against average working Americans, and carrying the ball for the bloodsucking ruling class, I get so outraged I can’t get past the word “scum”. They are truly among the most despicable of human beings.
The class warfare the plutocrats have waged against the average American since reagan, that has been buried by the corporate media as they carry the charge behind scum such as Mitchell, Corker and many republicans and democrats before them is an anti-American disgrace of enormous magnitude.
My hope from this latest assault is that Americans of every level below the bloodsuckers see from this what republicans and supporting DINOs really are and what they really stand for and from it work to rid us of this fetid vermin.
While the Plantation Caucus try to steal the auto workers and retirees wages and benefits they only have to work for 5 years to get FULL RETIREMENTS BENEFITS. US workers should be using our Governments retirement packages as a bench mark.