The great Larry Kudlow breaks it down like no other on Wall Street.
From Kudlow's Money Politics:
Isn’t it fascinating that stocks rallied over 200 points today, despite
Obama’s command-and-control government takeover of General Motors? I
think it’s because GM’s old-economy operation is yesterday’s story. The
new economy doesn’t need GM. We’re only talking about 25,000 employees
left in the car company’s domestic operation. Compare that to the
millions of workers at new-economy companies like Intel, Microsoft,
Cisco, Wal-Mart, Home Depot, Apple, and on and on.
Obama’s so-called GM rescue is a needless intrusion at huge taxpayer expense, and a political payoff to the union movement that helped elect him. And the central-planning mandate to produce little green cars at a domestic plant almost guarantees that taxpayers will never get their money back. Apparently GM cannot make these little green cars in China or Mexico and then have them shipped back to the U.S. for assembly and sale.
And we do not know the total compensation per hour for UAW workers — both salary and benefits — under the new agreement. That number hasn’t been published. So we can’t compare it to the compensation figures of the foreign transplants in order to measure competitiveness.
Obama’s so-called GM rescue is a needless intrusion at huge taxpayer expense, and a political payoff to the union movement that helped elect him. And the central-planning mandate to produce little green cars at a domestic plant almost guarantees that taxpayers will never get their money back. Apparently GM cannot make these little green cars in China or Mexico and then have them shipped back to the U.S. for assembly and sale.
And we do not know the total compensation per hour for UAW workers — both salary and benefits — under the new agreement. That number hasn’t been published. So we can’t compare it to the compensation figures of the foreign transplants in order to measure competitiveness.
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