Peter Flaherty, President of the National Legal and Policy Center (NLPC), today criticized proposals to bailout GM, Chrysler and Ford, arguing that the plans are actually intended to bailout the United Auto Workers (UAW). Flaherty said:
The $700-billion Wall Street bailout was not meant to be a prize for special interest groups that were on the winning side of the election. It is a mistake to use TARP to reward high-tax, non-right to work states like Michigan. It was argued that failure of financial firms posed systemic risk; no such risk exists with the automakers.
The automaker bailout is actually a UAW bailout. The union will not allow companies to deploy capital in ways that the market would dictate such as closing plants and layoffs. That’s why UAW opposed the GM/Chrysler merger and a government role in it.
UAW wants to instead enrich health and retirement plans they control, like … Read More ➡