Thursday, September 22, 2011

When Socialism Saves Capitalism

When Socialism Saves Capitalism is a good news story from Truthdig about the turnaround of the American auto industry helped in part by government intervention in the form of temporary investment and union-management cooperation.

General Motors has gone from a $4.3 billion loss in April 2010 to a $2.5 billion dollar profit in Q2 of 2011.  The new 4 year agreement with UAW will enhance the profit sharing agreement.  Union members shared the hard times with the company and will now share the good times.

The American taxpayer has been or will be repaid for their investment which the private sector would not touch, employees will stay employed, paying taxes and NOT needing unemployment insurance and the supply industry will stay in business.

Governments do a great many things right, many far better than the private sector. It is why we have government.

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