Monday, December 21, 2009

Detroit in RUINS! (Crowder goes Ghetto)

2 comments:

Bill said...

This guy's right when he says Detroit residents got too many entitlements. That kind of policy just fed into the laziness of some people. It became a vicious circle - the more they got, the more they wanted, and the lazier they became. The problem was not the giveaways (because some really needed it), but the kind of people who abused them.

Crowder ignorantly blames Democrats and the UAW as the only reason for Detroit's demise and subsequent auto bailouts. He says union wages are the cause, but doesn't mention that Ford didn't take bailout money - and their workers are in the same union! He also neglects to mention that the CEOs of Chrysler Group, Ford and GM earned a combined total of $24.5 million in salaries, bonuses and other compensation in 2006. And the next four highest paid executives received average salary and other compensation of $1.3 million at Ford and $1.4 million at GM. That's a total of over $29 million for only one year! These substantial sums do not include the value of stocks and stock options that were also part of executive compensation.

His claim that the average UAW worker makes $74/hour is not true, either. It's $38/hour:

The contract negotiated with the UAW in 2007 set the average auto worker's wage at $28. The $74 number was arrived at by taking all the costs of retirement and healthcare programs and dividing by the total number of hours worked by all employees. But those total numbers include the costs for the hundreds of thousands of retirees. US auto companies have been in business for nearly a hundred years, and there are still a lot of retirees who are alive and collecting their pensions. The actual value of benefits received by employees is around $10/hour.
http://www.gather.com/viewArticle.jsp?articleId=281474977521472

I agree that the UAW is greedy, just like management - and greed is the cause of our economic collapse and subsequent bailouts. The fact that the Union will not give any concessions is ridiculous and just cutting their own throat. Their SUB pay really pisses me off!

Crowder contrasts UAW wages to Japanese wages but fails to mention the average CEO in the U.S. (including the Big Three) make 400-500 times the hourly worker compared to Japan where CEOs make 30-40 times as much. I find his claim of the average auto worker making $2,500 a week a little hard to believe.

As far as the labor costs of a new car.....the biggest expense is not union wages as he suggests. In 2006, the total labor cost of a new vehicle produced in the United States is about $2,400, which includes direct, indirect and salaried labor for engines, stamping and assembly at the automakers’ plants. This represents 8.4% of the typical $28,451 price of a new vehicle.
http://www.uaw.org/barg/07fact/fact02.php

Detroit used to thrive because the best cities have the most jobs. But, when businesses move out, unemployment and crime increase, and residents leave. Many factors are involved in Detroit's downfall, so to blame one political party is simply ignorant and one-sided. If this were the case, New York City would have turned into a ghetto from 1946 to 1994 with 48 years of Democratic mayors.

And, if Democrats ruin a city, as this comedian suggests, Chicago, which has had a Democratic mayor every year since 1931, would have looked like Detroit 40 years ago.

gordon gekko said...

Actually Bill I think it's perfectly fine to blame one political party.

Using your NYC example, it was a ghetto until Giuliani started kicking some asses.

Using your other example, Chicago. is it showing growth as compared to say Dallas or Houston or Charlotte.

It's not just the weather.

The fact is, where you see large concentrations of democrats you'll find large amounts of crime, unemployment, shitty schools, and homeless people.

You tell me why that is.