Tuesday, November 25, 2008

Another Reason to Hate Republicans

Mitt Romney was on TV the other day. He was talking about the auto companies. (Mitt should know something about them, his dad ran American Motors and was governor or Michigan)( I owned an AMC car when I was young. It got great gas mileage and the front seat went all the way back. A great feature when you were young and into parking with girls.) Mitt feels that GM and the rest should be allowed to go bankrupt. The reason he thinks they should is that it would allow them to get rid of legacy costs. To Mitt legacy costs include real estate and pension costs.

If you live in a town such as Lansing this is going to be awful. What Mitt's plan does is it means that all these people in your community with GM pensions are going to make less. It also means that all of the GM plants that have closed or been torn down in Lansing can be abandoned. GM will not be responsible for paying taxes and probably not responsible for cleaning up the brown fields they have left behind. The net effect of Mitt's plan is to shift many social welfare costs from corporate America to the government. Of course when the government steps in and says that they should help people or local government Mitt will yell "socialism".

I am not sure where Mitt thinks this will all end up. I am sure it will make real estate cheaper, which will be good for people with Mitt's kind of money. It will probably also lower the wages of servants. All in all a win-win for Mitt.

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Cheap Essays said...

may be he could make real state cheaper...

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