Re: Whirlpool gets Maytag

This always happens when potential production exceeds demand. It
is one thing when this occurs because of the natural evolution
but quite another when it is driven by fanatical ideology,
particularly when this is funded with taxes extorted from the
doomed industries and their workers. This has noting to do with
"free enterprise" and everything to do with who has the best
suction on the Federal tit.

This should be hammered home in not only every economics class
but also every international economic development class.

Because of stupidity or actual malice [i.e. union workers have
tended to vote democratic], construction of new manufacturing
facilities increasing total possible production to 150 or 200% of
market of not only home appliances but many other areas such as
automobiles have been financed with tax breaks and in many cases
with actual grants by our [US] government. The only possible
affect is to drive the older factories, with the older, higher
paid workers and less efficient equipment out of business.

The massive forced investment in these new industries,
constructed with extorted taxpayer funded grants, guaranteed
loans, and tax subsidies, even if located in the United States,
has not resulted in a single new job or additional tax dollar,
but only a transfer of employment from higher paid workers in the
existing stockholder financed factories (generally in the blue
north-east), to the lower paid new-hires in the new tax financed
factories (generally in the red-state south). When these
factories were constructed in other countries, the jobs and tax
revenues were just plain lost.

<snip>
>200 out of 21,000 for Whirlpool. Another 13,000 for Maytag. This guy
>is in no bargaining position at all and he has no clue what will
>happen. It's very likely the least profitable product lines will be
>terminated. Whirlpool has more plants in Brazil than Mexico. The both
>have a plant or two in Reynosa, Mexico. The real question will be
>where are the best paying union jobs and the least profitable or most
>troublesome product lines. Those are the ones that will be cut or
>moved. Redundant facilities will be closed. You can expect to see the
>combined company contract to about 26,000 world wide within 2 years as
>they "concentrate customer and product focus" and "increase
>shareholder value". Net loss to America: 10,000 manufacturing jobs and
>product diversity. Less consumer choice as product brands disappear
>and competition is eliminated. The management teams of both companies
>will take their bonuses and retire.

.

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