The Big Three, or the Big Two?

Have some MI pride: if the auto industry collapses, Detroit will die. While liberal Californian commentators argue that “Detroit must die,” I am sure they wouldn't be so direct if I wrote a column that San Francisco must die. I am tired of taking the brunt of the nation's recessions, while being criticized or ignored for it. Michigan's long-sitting Congressmen are openly attacked by Nancy Pelosi and her "Coasters." These Coasters then attack our hard working Michigan employees as being greedy and lazy. Even Mitt Romney, son of Michigan Governor Romney, dismissed Michigan and blamed those who were responsible for building the arsenal of democracy. Congressmen, try telling the seventy year old retiree who now has carpal tunnel syndrome from working in the shop that she was just too lazy and greedy to expect her retirement. Our industries are allowed to fail without condolences, but with massive applause.

Now, I will be the first person to admit that these CEOs were stupid for taking separate private planes to the same city and the same meeting. Yet, our Congressmen reminded me of angry children who just wanted to get back at the kid on the playground who has all the toys. Our Senators seemed content to sit back and watch it all happen; after all, they won’t be near Ground Zero here in the Midwest when things get chaotic. They will be content down south, to the east, and to the west ruminating about how great their states are doing, while ignoring this national security issue. It is about time that Michigan tell the rest of the Nation that enough is enough, we won’t be the Nation’s crutch like usual.

Cramer may be a little eccentric in the clip above, but boy does he summarize the importance of this bailout and hit the nail on the head. The financial sector is only half the problem here. The problem is systemic and has been slowly gathering momentum since the late 1970’s. American wages have been either stagnate or declining since, while every other cost has been rising. This problem should not be revelation for most rational human beings, but the majority of economists have been ignoring this problem in favor of promoting the trickle-down theory. This is what happens when intellectuals sell out.

Since the end of WWII, the capitalist economy has been based around consumerism, which requires a strong middle class with the resources to spend, spend, and spend. Yet, as mentioned above, wealth has concentrated and the middle class has shrunk. So who picks up the tab necessary to keep this economy circulating? For the last three decades, we have been acting on a binge, spoiled by credit to keep the bubble from exploding. However, our national economic policy has continued this slow pace toward chaos through deregulation, unfair trade agreements, and the destruction of safety net programs designed to stabilize the country after the Great Depression. Let’s not be partisan, this was the general direction even under democratic leadership.

While I am not saying we should move backwards, I also realize the days of trickle-down are over. The concept is antithetical to consumerism. We want as many people as possible to have disposable cash, decent jobs, and low costs. This sounds like a difficult objective, and it is to the point of being practically impossible. But there is some clarity: the assumption that a small group of concentrated wealth will share that wealth in a capitalist economy has been forever tarnished.

The last thing this country needs is 3 million more unemployed, millions of failed pensions plans for the Pension Benefit Guaranty Corporation to pick up, the failure of support industries, the fail of small businesses, and the huge numbers of uninsured that will all result from the collapse of the American auto industry. The market will handle it you say? No, they won’t because no one has disposable cash on hand to start up new companies that are more efficient than the current companies. Bankruptcy? I think everyone is misunderstanding bankruptcy. GM will not cease to exist. However, it might as well. Who will buy cars from a bankrupt company that will not honor its past service and parts guarantees?

Bankruptcy mostly impacts employees. GM can void its union agreements. All those pension benefits are still guaranteed by the United States government through the Pension Benefit Guaranty Corporation. Yet, there is no way they will be able to live up to those pension agreements. Health care? Gone too. Many will lose jobs working at insurance companies. What about the wages we need to maintain a consumer economy? Definitely gone. Oh, and heavy layoffs is the last thing our economy needs to jump start after the financial crisis. Bankruptcy also voids other contracts forcing the burden on small suppliers. If they tank, the Big Three tank.

Next, stop bad-mouthing the UAW. They cut the salaries of their new-hires by half. They picked up millions of pensions and health insurance costs. They have been cooperating with layoff after layoff. Everyone deserves the right to be compensated for their work. Last time I checked, that's the goal of capitalism. Just because the rest of middle class American has collapsed does not mean the last bastion of the middle class should collapse as well. Again, how does that help our consumer based economy??? I'm not saying we should remove all blame from the shoulders of the UAW, but there are deeper problems at work here that are diminishing GM sales.

GM is a company that has lobbied against the future. They have done everything to prevent the natural progression of history and technology. It was only a matter of time until the rest of the world moved on without them. That being said, this is not a company that is unsalvageable. This is a company that needs a new direction that Congress should prepare to give it one like they did during WWII.

Unfortunately, we won't be getting a bailout for middle class working American under this Congress full of Coasters with their economic blinders on. Hopefully, Obama can wrestle these ego-centric and narrow minded senators into making the right choice.

Keith

Detroit's Kwame Duo

Unless you have been living under a rock on the ocean floor for the past six years, it has been almost impossible for a resident of Michigan to not learn about the allegations, accusations, and well just plain acts of foolishness, which have been levied against the Mayor of Detroit, Kwame Kilpatrick. Some of them have never been substantiated while others have been blasted on the front page of the newspapers and have led to Mayor Kilpatrick being charged with eight felony counts.

This crisis has serious implications for the Mayor and his family, his former Chief of Staff, the residents and the City of Detroit, and the entire State of Michigan for whom Detroit will be either the engine or the caboose.

However on July 29, 2008 the heat began to lift off the Mayor. If the
Mayor escapes his current scandals with Houdini like ease, this date will be
cited as the turning point.

What happened you say, well THE DETROIT PISTONS SIGNED KWAME BROWN!



Follow me here. Since the 2001 Mayor's Race, Kwame Kilpatrick has cast a literal and metaphorical shadow over Detroit politics. Friend and foe alike knew who he was to the point that other than official statements and news reports he became known just as "Kwame". Friends referred to him by just his first name as a way of distinguishing him from his Congresswoman mother. Foes omitted his surname as a sign of disregard and disrespect for the Mayor. Around Detroit and indeed Michigan, people would say, "Kwame did this...” "Did you hear what Kwame...".

However, beginning in November, people will have to specify which Kwame they are referring to. Detroit's new Kwame duo have more in common than the same first name:

2001

Both burst on to the stage in 2001: Kilpatrick winning the Mayor's race and Brown as the #1 overall pick in the NBA.

Youth

Both were relatively very young when they became household names: 31 for Kilpatrick, Brown 19

Record Setting Youth

Kilpatrick was the youngest Mayor in Detroit history, Brown the first High School Player selected with the #1 overall pick in the NBA draft.

Famous Pedigree

Kilpatrick hails from a famous Detroit political and succeeded his mother in the Michigan House of Representatives. Brown was the first draft pick by former Wizards General Manager and His Airness Michael Jordan.

There are however a few differences between the Detroit Kwame Duo:

Size

Brown is a typical NBA athlete with a tall sleek build checking in at 6'11" and 270 lbs. Kilpatrick has the build of a former football player, which he is, and checks in at around 6'4" and a kind 300+ lbs.

Hands

Brown's major weakness is his poor use of his hands. His inability to catch passes in the post and to be able to move the ball have hampered his development over seven seasons in the NBA. Kilpatrick though has allegedly shown himself to be skilled at using his hands, at least according to Wayne County Sheriff's Detective Brian White.

Which one of Detroit's Kwame Duo rebounds and reclaims some of their former prestige? Brown, Kilpatrick, Both or Neither? Post in the comments.

-Kyle M.