Chrysler to shutdown until January 19th!
Posted by Mike Sylvester - 12/17/08 @ 7:42 pm - Filed Under National Politics
Chrysler is closing all of its manufacturing facilities until January 19th, 2009.
Per my understanding of the UAW contracts most workers will receive 85% - 90% of their pay from a combination of Chrysler and state unemployment funds. Per the story most white collar workers will still receive their pay from Chrysler. So this shutdown will save Chrysler only a limited amount of money. This is of course ABSURD. They cannot even save a significantamount of money by closing their factories because they have to keep paying people not to work.
Many Democrats and liberals are predictably trying to blame this on President Bush and the Republicans.
These Democrats and liberals are morons.
Chrysler has sold between 30% and 40% less cars than they expected in 2008. That is why they are shutting down; they should shut down. In fact, they should have done this earlier in the year when they saw sales drop. Any prudent business would have cut production several months ago…
Chrysler is hurting because American consumers are not buying new cars at the same pace as prior years. American consumers are not buying new cars on a pace similar to prior years because:
1. Many Americans have been forced to decrease spending due to the recession.
2. Many more Americans have decreased spending because their confidence is shaken in the economy.
3. The banks have stopped loaning money to people who are bad credit risks; note that they used to ignorantly loan these people money which was a terrible banking strategy.
The shutdown at Chrysler has NOTHING to do with President Bush, The Republicans, or The Democrats specifically; it has to do with the recession, the decrease in consumer confidence, and the fact that banks have stopped loaning money to people that are bad credit risks.
Mike Sylvester
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3 Responses to “Chrysler to shutdown until January 19th!”
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I bet they’ll save a lot on electricity and other utilities!
But I agree that it is absurd to pay a person nearly as much for not working as they would receive while working. It kind of gives the employees an incentive to try and get the place to shut down.
Your UAW and Democratic Party at work!
I don’t know if in this situation it actually gives employees incentive to try to get the place shut down. I would think, given the grim situation, they would hope for as much work as possible. If the shutdown solved all the problems and it was business as usual afterward, yeah potentially. But given that even after the shutdown these people may not have jobs, i don’t think there’s much incentive for any of the autoworkers to hope for a mere few weeks of paid time off.