June 01, 2009 - GM: Survival of the Weakest

First off, let me clarify that I do not stand with those of general outrage at the Government bailing out a private sector corporation. I don't stand with those angry creditors and investors of GM who are effectively getting the shortest end of the stick. I don't even stand with those that rally against Government regulation, in fact, I'm generally in support of it.

I'm against the chainsaw for brain surgery approach that the Obama administration is taking to try to bolster out economy once again.

When Bush stole the $300 for everyone idea from Futurama to try and stimulate the economy, (See Futurama Ep 70, "Three Hundred Big Boys" and Bush Stimulus Plan, aka "WASTEDCASH",) I was among many to applaud the idea in theory (and in the form of a sweet tax rebate) and reject it in general practice. It seems that many moves are merely political in action, without taking the time to sit down and generate a detailed and thorough solution to the economic crisis.

GM is responsible for hundreds of thousands of jobs throughout its corporate structure and trickle-down links within the automotive industry, from dealerships to part manufacturers and so on. Its centralized focus is the mid-west, a vast realm of political support for the right wing; an area desperately courted by the Democratic party, often with the same results of taking your Prom date to White Castle.

Many cite the Chrysler deal as a representative of the possible success that GM could see post-bankruptcy. All it would take is for another incredibly unsuccessful company (Fiat) to make an amazing turnaround in sales to garner enough funds to buy out the broken company (Chrysler), leading to a practical marriage of universal need by two partners who could barely stand on their own. So who would marry GM? Step up ladies, as the perfect groom is here, a company run by greedy, self-wounding executives who learned the ultimate lesson that failure leads to success...at least for them, and not the hundreds of thousands out of work.

Excuse me for the digression. When you live in a state that represents, even at its worst, 10% of the nation's entire economy, it is tough to see our social services and education systems being left in the cold by the Federal Government, while a private corporation is given a sensual massage by the president himself.

So forgive my coldness to the matter. Oh, and a quick message to the bondholders who invested in GM and are crying sour because their money is gone. Congratulations, that's what happens when you invest in a company that fails. Move along. (Even worse is that the government is bailing out the "secured creditors", once again, we are paying as a people for others' foolish mistakes.)

Back to the matter previously mentioned, Obama's choice to bail out GM in hopes to stimulate the economy, rescue jobs in the long-term and support the "American Ideal" that GM is a company that represents the strength of American workers, is utter foolishness. The automotive industry represents approximately 2.5% of our national economy, with GM a sliver of that. The potential for success after bankruptcy for companies like GM and Chrysler are extremely slim, even with the European bail-out of Chrysler.

As for the "American Ideal", GM no longer represents the strength and integrity of American workers. All it represents now is that the incompetence of greedy executives comes with little consequence and that failure is rewarded and success punished.

If we want the economy to thrive, we need to encourage the growth of healthy business practices, reward those companies that succeed or else risk never evolving in a world economy eager to leave us behind. Survival of the weakest doesn't work in the wild, and it certainly won't work in the world of business.

One Story, One Draft - Preface

Since I never seem to actually write anything on this blog, or rather, I do in such sparse and infrequent ways, I want to try a writing exercise.

One story, one draft, unedited, just written and posted. Not sure where it's going or what exactly the story will be, but perhaps this is a great way to encourage even further writing. Writing that's random enough to spark a brainstorm, but hopefully good enough to be posted publicly.

Where it starts, here, where it goes, who knows?

Wish me luck.