I will add to yesterday's post with the long James Kunstler remarks, that a third reason for the government to help the auto industry is to "bail out" the employees and retirees. I don't think anyone is going to make as much money as we have been in this country, especially those working in a failing industry that failed to innovate, failed to see past the dollar signs and is based on the use of a finite resource that is declining and getting more expensive already. However, the many employees in this country who are losing jobs and retirees losing benefits and pensions are going to need help.
Obama is getting and will continue to get much criticism for being beholden to the unions, and he is certainly beholden to them. Many say unions have overstepped reality and that salaries and pensions have been overly luxurious, and I would tend to agree. However, it's hard to get far with that argument when the CEOs have been taking EXTREMELY luxurious salaries, bonuses and benefits. In fact, this CNN Money article states that in 2001 the ratio of CEO pay to the average worker's pay was 525 to 1! In 2004 it was down slightly to 431 to 1. In 1982, that ratio was 42 to 1 and in 1990 107 to 1. It seems we've all been feeding at the luxury trough in the last 20 years, most especially the CEOs and bankers and Wall Street execs.
So why should the government bail out those earning over 400 times what their average worker earned? I don't think it should! But I do know we're going to need lots of help for those folks whose lifestyles are going to have to change drastically in the near future. And help for those who were already on the edge financially and now have nothing. I have hope that Obama won't forget those people, who could be me but for the grace of God.
In this "new economy waiting to be born" of which Kunstler writes, perhaps our jobs will be very different, perhaps we won't have the material goods we've grown accustomed to, but perhaps we'll all rest easier at night with a lot more satisfaction in what we're accomplishing because it will more directly impact our lives. Whether it be growing our own food or establishing a local business that directly benefits our neighbors, the economy is likely to get closer to home for a long time.
Obama is getting and will continue to get much criticism for being beholden to the unions, and he is certainly beholden to them. Many say unions have overstepped reality and that salaries and pensions have been overly luxurious, and I would tend to agree. However, it's hard to get far with that argument when the CEOs have been taking EXTREMELY luxurious salaries, bonuses and benefits. In fact, this CNN Money article states that in 2001 the ratio of CEO pay to the average worker's pay was 525 to 1! In 2004 it was down slightly to 431 to 1. In 1982, that ratio was 42 to 1 and in 1990 107 to 1. It seems we've all been feeding at the luxury trough in the last 20 years, most especially the CEOs and bankers and Wall Street execs.
So why should the government bail out those earning over 400 times what their average worker earned? I don't think it should! But I do know we're going to need lots of help for those folks whose lifestyles are going to have to change drastically in the near future. And help for those who were already on the edge financially and now have nothing. I have hope that Obama won't forget those people, who could be me but for the grace of God.
In this "new economy waiting to be born" of which Kunstler writes, perhaps our jobs will be very different, perhaps we won't have the material goods we've grown accustomed to, but perhaps we'll all rest easier at night with a lot more satisfaction in what we're accomplishing because it will more directly impact our lives. Whether it be growing our own food or establishing a local business that directly benefits our neighbors, the economy is likely to get closer to home for a long time.
Comments
I keep seeing these headlines about the global crisis (you know, the one which is [[gasp]] 'people are not buying as much stuff')...
While I understand the world was based on people constantly buying crap they don't need which isn't made well which will be disposed of only to buy more crap, and so entire economies are based on that...but HELLOOOOOO? The fact that luxury disposable goods are not selling at a crazy rate is a good thing. I guess it is a bit of tightening at the belt and moaning from the profiteers, but we hear (and know it to be true) that we CANNOT continue at this pace, to reduce/reuse/recycle, don't buy what you don't need, etc. and yet when that happens (albeit due to economy and not soley by choice), all the headlines and nations suddenly panic about the global crisis of not buying crap? Whew.
Ok. Not entirely coherent rant there, but it is all just being spun and not being discussed. Grrr. I say "new economy waiting to be born" needs a catalyst, and perhaps that is now. Thanks for more food for thought. :)
Hey, I love the new look and picture. Your cat is so pretty. I can not figure out how to get a custom heading up on my blog. Duh!