good riddance to bad automakers

libertarianism market anarchy

good riddance to bad automakers

i’ve blasted GM and Chrysler for their pathetic thefts of billions of dollars through their cozy relationships with the National Criminal Syndicate, uh, i mean, the u.s. government, and rightly so. the u.s. automakers are uncompetitive in the market and it has been decided by consumers that they will not succeed due to the offerings of their better suited counterparts. bravo for the market process for making our lives perpetually better by lifting those that best fulfill our wants and needs, while offering opportunity to everyone.

now that GM and Chrysler have failed (resorting to crime for survival is pretty much the equivalent of waving a white flag at the competition), it’s worth mentioning that their failures were largely attributable to the same entity that has come to their rescue with dirty money.

it is inevitable that workers will get together to try to leverage their bargaining power for higher wages and benefits. there’s absolutely nothing wrong with this, though they take the risk of being fired en masse by their employer. what is wrong, though, is when unions get together with government and force companies to negotiate without the ability of the company to seek labor elsewhere. this is precisely what drove GM and Chrysler under.

in 1935, in an apparent attempt to drive the u.s. economy into complete oblivion with absurd keynesian/fascist policies, the uber-evil roosevelt administration helped to pass the National Labor Relations Act, barring u.s. automakers from simply getting rid of the UAW (or any union). since then, the UAW has, like a blood-sucking parasite, drained u.s. automakers of profitability through exorbitant wages and has gravely disrupted innovation. what can we expect? they are compelled to accept the ridiculous decrees of the UAW by law! it is estimated that the UAW has increased the cost of each GM vehicle by $2500. leading manufacturer, toyota, has an average profit per vehicle of only $2000! GM can’t win! for them, the UAW has made doing business a debt-creation exercise.

of course, the fact the the u.s. government has forced GM out of business is no justification (by a long shot) for being bailed out by the culpable government with money stolen from innocents. what they should have done at any point along the time line is extend the middle finger to the state, eliminate all UAW workers (who, themselves, are wrong for working for a criminal entity such as the UAW) and fight to the bitter end against state control of their industry. but that takes guts and the realization that they have the right to do business without state interference.

would it have eventually become violent? probably, but that’s what one can expect when dealing with the government. everything they do is predicated on the use of force. but what a glorious fight for freedom it would have been! the rebellion of a company as large and beloved as GM could have thrown the country into full-scale and much needed revolution. but instead, they cowardly made the least out of that opportunity, opting to grovel at the feet of the monster, begging their abuser to bandage their wounds. as harry browne quipped, “The government is good at one thing. It knows how to break your legs, and then hand you a crutch and say, ‘See, if it weren’t for the government, you wouldn’t be able to walk’.”

that is sick, sad and pathetic. so, good riddance, u.s automakers! you have chosen your destiny.

Conceptual logician, libertarian philosopher, musician, economist, almost-ran businessman and other stuff.
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