Friday, May 29, 2009

Saving GM's Privates

Several years ago a Tom Hanks film had a title something like this. In the movie he was one of the last sons of a large family whose other boys had been killed in battle and the army was trying to find him bring him back from the front where he was at risk and save his life so the family would have one son survive the war. It always struck me that the point was to save Ryan's privates.

In the case of GM it is not clear what is the real objective; is it to save something vital that will be GM? Or, is the point to save the privates? The point is not to  save the excecutives, certainly not to save the shareholders, but is the real objective to save the privates who work there, the rank and file, the UAW members, the largely democrat work force?

Yes, save those privates.

So the GM case drags on. And there will be malcontents, there will be survivors and there will be net job losses. Still some jobs will be saved. Time will  tell how well the various government backstops will keep buyer willingness aloft. But it will help to stave off even more job losses in the Big Three and among their suppliers.

It will help.   

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