Phil Gramm suggests that Americans should stop whining about the recession which is mostly in their heads. Even though McCain has repudiated this, the truth is that he spoke what many in the “investor class” truly believe….if GDP growth is respectable, then there’s nothing really to worry about……as if GDP figures really reflected an nation’s economic health. If corporate profits are up…….well then what’s all the fuss…

 

….but as it happens, Gramm must be on Pluto (see previous post, “What planet are they from?”)…..GM, once the show piece  of American corporate capitalism has less shareholder value than Starbucks or Hershey’s….and the “b” word (bankrupcty) is being floated.

…and speaking about GM…… a recent Washington Post editorial suggests that the root of GM’s problems is their lavish pension committments, foolishly made when GM was flush with cash in the early 70’s…..when half the cars on the road in America were GM made…

….though the article hints that GM is guilty of poor planning, poor quality and poor management, …..it lays the blame at the feet of the workers and their union (UAW) for demanding such high pension.

No doubt there is some truth to the notion that government, not companies should be providing health plans and pensions, still, it seems clear that if GM had greater market share they would not be laying off workers and talking about stopping production of great brands like Buick and Pontiac.

And why don’t they have more market share (2 out 10 cars in the U.S. is GM)?   Quality.  Fuel efficiency. Lack of foresight…….

….just look at what Carlos did for Nissan…..quality, streamlining, cost cutting, marketing strategy has made a that company highly profitable.

I’m no fan of the way Toyota treats it’s workers, but boy do they make a damn good car….

 

 

…..so once again …let blame the workers! because they want a decent pension?…….We should assign blame where blame is due. Some companies make money even in hard times (S.W. Airlines)….because they seem to know what really counts— customer satisfation, service, quality…….