A few thoughts from Texas
Firstly, driving through the panhandle of Texas is really quite boring. We had to take a trip from Canyon down to Lubbock yesterday, and after about 10 minutes of cotton fields, they really start to look the same…so…the hour and half drive was quite boring. Texas Tech’s campus was quite nice. The construction in Lubbock was annoying.
Secondly, its much harder to keep up on what’s going on in the world when you’re not at home and your normal schedule of things gets screwed up. Therefore I’m less able to blog about the political actions of our incompetent politicians.
Thirdly, I have truly had it with this bailouts. We have now bailed out Citigroup because they are “too big to fail” yet they still plan to keep their 400 million dollar contract with the New York Mets to keep the name of their new stadium, “Citi Field”. AIG is still paying 125 million to have their name on the Jersey’s of Manchester United, and Bank of America will not only keep their name on BoA stadium in Charlotte ($140 million), but will also still look to attach their name to the Yankees ($20 million) after taking $25 billion from the Federal Treasury (aka your tax money). This only makes it easier for the Auto Makers to continue to push for their bailouts.
For those of you that may want to disagree with me about the union contracts with the automakers causing problems. My father-in-law – who is a member of the carpenters’ union, and has sat on the board in Dallas – agrees with me. He too agrees that it is ridiculous for someone to get paid $26+/hr to put an orange dot on a body panel for a GM car.
We seriously need to get back to the basics of free market capitalism. One of the biggest things that is important to free market capitalism is that businesses fail. If we don’t let businesses with a bad structure and/or bad products fail, then we don’t make room for businesses with good products/structure to start and grow. Right now the American auto market is controlled by three companies, there is next to no chance for an upstart American auto maker to get going. If GM were to fail, completely fail (which would not happen anyways…but still) 1. Ford and Chrysler would grow because you have people that no matter what are going to buy American, and they will have one less company to choose from, so all those Chevy buyers are going to be divided b/w Chrysler and Ford. 2. It provides a gap for another company to fill, one that would model their business structure more after Toyota than GM.