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"Corporate Greed at Its Worst': After Reaping $514 Million From GOP Tax Scam and Billions in Public Subsidies, GM to Fire Nearly 15,000 Workers

"Corporate Greed at Its Worst': After Reaping $514 Million From GOP Tax Scam and Billions in Public Subsidies, GM to Fire Nearly 15,000 Workers

Julia Conley, staff writer

Tax justice and labor advocates were among those who expressed outrage Monday at the news that General Motors—one of the corporate giants that benefited immensely from the Republican tax plan last year—would cut 15 percent of its workforce, shuttering production facilities in three states as well as Canada to trim costs.

The auto maker is closing five plants in Ohio, Michigan, Maryland, and Ontario, with plans to cut thousands of office jobs in January—slashing a total of 14,700 jobs.

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And yet another reason to stop buying/owning the damned personal polution machines.

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Now, did Sherrod Brown castigate GM for taking the federal bailout that was pushed through by Democrats back in 2009?

Let’s be honest - big business grabs all the taxpayer dollars it can from both parties. This is not a purely Republican sin. When government offers a place at the trough everyone who can will line up, whether it’s GM, Amazon, or NGOs and “community activists”. Everyone wants “free money” - the problem is that our system allows government to hand it out to people to buy votes.

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Would you have preferred an entire industry go under? And it didn’t appear to buy votes for Democrats, right?

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The industry wouldn’t have “gone under”. GM would have undergone a chapter 11 bankruptcy (as, for example, many airlines have, and other companies) and re-organized. The bailout was more for the benefit of the UAW than anyone else if you look at the terms of the deal.

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A worker-owned enterprise wouldn’t have done this (but it’s a safe bet that a worker-owned enterprise wouldn’t have been bailed out multiple times, either).

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Absolutely right Guild. I’ve almost never seen an ESOP-owned company go bankrupt.

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Making America great again.

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Uh, that’s not true. The union had to agree to doing exactly what they didn’t want to: delay retiree healthcare payments, create a two-tiered wage structure, and accept non-voting share of company stocks. You are just repeating right wing blather because the right wanted a bailout for ownership, not for workers, as is typical.

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Another “Groundhog Day” in America.
“All life is a blur of Republicans and meat.”

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Wilson Freight 1980, I worked there dipshit, and was in & out of work during another recession for 5 yrs. I don’t know you or your history, BUT sometimes, sometimes the govt owes it (yeah, owes it) to the working class to “bail out” a large company JUST to save the jobs of working class stiffs. And, most importantly ESOP means E-mployee S-tock O-ption P-rogram. It was not what Professor Wolff advocates for which is FULLY employee owned enterprises which is a completely different animal from an ESOP.

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Making America Grovel Again.

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Time the government invested in worker owed companies. Clearly we are in the second Gilded Age and we must now form a new Front against it.

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Not at all KC - the union lost some things in the deal, but they got $24 billion paid into the employee benefits trust, which would not have happened but for the bailout deal. They also got a substantial stake in the equity. As a result, they came out significantly better than the creditors, or the shareholders. For example, the union ended up with 17.5% of the company, the creditors with 10%, despite the fact that the debtors were owed substantially more than the unions.

No one got out unscathed, but the unions did significantly better than they would have in a straight chapter 11 filing.

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It depends on the ESOP. If we’re talking the piddling 1/2 percent tax credit ESOP that many companies used as window dressing in the 80’s then I agree with you entirely. By the same token, I’ve seen (and been in) many successful ESOP owned companies where the ESOP is used to transfer a substantial stake in the company to the employees. If they have a meaningful stake in the business it can have a dramatic impact on the success of the business.

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Didn’t GM recently get bailed out by Obama? Are you still buying GM products? Why don’t they ask Jeff Bezos to bail them out? Hey, Michael Moore, here’s another Michigan movie!

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The fact is new car sales are plummeting. There a number of reasons for this but one of the major ones is consumer debt at record levels and interest rates are rising. Many people that would have bought new are looking at used vehicles or previously leased vehicles so they can afford Monthly payments.

Added to that new CAR sales are at a 60 year low as the majority of new vehicle sales are light trucks or SUVs. Those that can still afford to take on debt are buying these over cars.

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Obama did that once, didn’t he?

The mistake here is in anyone even thinking that a big tax give away to corporations would change their business model. How stupid can you be? Of course the corporations will take the money and continue to move labor overseas where it’s cheaper or eliminate jobs to cut back lower profit segments. Tax giveaways do nothing to create jobs and the corporations as much as admitted they weren’t going to let that kind of money trickle down. Why would they when they know they can stuff it in their pockets which was where Congress always intended it would go anyway. Just smoke and mirrors that the Charlie Brown football kicking public continues to fall for.

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Absolutely!
And those low unemployment, economy boosting rates that Trump is braying about? How many cars is a person “employed” at one hour per week able to afford? People are also not buying cars because even though they are “employed” they have low hour, low pay jobs and they don’t have enough money to even qualify for a liar’s loan.

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