Bailout efforts causing job losses - but not the way you think - Granite Grok

Bailout efforts causing job losses – but not the way you think

Well, it started when the Congresscritters abused the Big 3 Auto CEOs for arriving with their hands out for money.  The problem is the class envy / populism that was gin’d up over the expensive biz jets like these:

Biz Jets in Hanger

 The problem?  The premise was to "save" these companies, right?  Well, the jury is out on that, as even with the massive injection of cash, there’s no guarantee that it is going to turn those companies around.  Less so, in my opinion, as Congress and the socialists within the new Administration have already declared what the car companies are going to sell: tiny econo-boxes that no one will want to buy.  Remember, there is a danger in letting politicians running businesses – they can’t even run their own Senate cafeterias!  And they believe that their ideas of what a car company should do is going to work?

Well, because of the class envy and the resultant bad PR, instead of saving the car companies, they are about to force another industry to tank: corporate jets.  Already, layoffs!

Manufacturers are hurting. This month Cessna, maker of the popular Cessna Citation, said it would lay off an additional 2,000 workers — its second round of cuts — and that the company would probably shrink production in 2009. Last week, employees at Hawker Beechcraft, another corporate jet maker, were told to prepare for another round of layoffs after 500 job cuts last December. Business at Cessna, which had been anticipating an upturn in orders in 2009, had a steep decline in the third quarter of 2008.

Thus, instead of "hurting" the rich, the ding is on the heads of the little guy (thanks, Congress!).  Sure, it sounds politically correct to try to "bring down" the fancy lifestyles of the rich and famous.  Problem is, the rich and famous will either find another way to do the same thing, or just leave that marketplace (which hurts the lower classes as their jobs are no longer needed.

Hey, it’s not the first time that Congress, in a lame attempt to whack the rich, has actually nailed the actual workers instead of the head honchos.  I remember when a tax on yachts was applied back in 1990 on any yacht over $100,000 – the idea was that all these rich people are going to be paying all this new money to the government.  Nice for government coffers, right?

Wrong.  And it did not hurt the rich at all.  Most rich people are smart, and just made the decision to enjoy their wealth – somewhere and with other than yachts.  The market collapsed and a lot of the blue collar workers that used to do the actual work lost their jobs.  Small yards shut down; businesses that had existed for decades as small family businesses shut the doors.  Just think of the unemployment costs and the loss of income taxes that act created instead of incoming sales taxes.

Ah yes, the Law of Unintended Consequences rides supreme. 

Hey, I finally get to use this (heh!)! 

baby human shield

Remember, a lot of times, the empty seats are used to shuttle sick kids from their distant homes to hospitals where there is specialist help awaiting them.  So,  when Congress attacks these CEOs and their fancy planes, remember – your Senators and Representatives are hurting the children!!! 

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