There are a lot of people in Michigan who feel used and betrayed today.
Most are angry and in shock over General Motors’ decision to end production at its plants in Hamtramck and Warren, eliminate thousands of jobs, and cancel iconic models like the Chevy Impala and Buick Lacrosse. This comes less than a decade after taxpayers spent billions to keep GM functioning through a cushioned bankruptcy that saved the company.
But others are outraged over the Michigan legislature’s evident desire to completely thwart the will of the people by sabotaging efforts to raise the minimum wage and guarantee all workers sick time. Citizens collected hundreds of thousands of signatures to put proposals on the ballot that would do both those things.
Republicans in the legislature, and the business interests that back them, were afraid that if the voters got the chance, they would approve both things. So to head them off, the lawmakers resorted to a trick. They passed both proposals into law, laws that won’t take effect till March.
They did that with every intention of sabotaging the will of the people by coming back in what’s called a “lame-duck” session after the election and repealing or severely gutting both bills.
That’s what they intend to do this week, and as far as I can see, there is very little chance of stopping them. Well, those who are outraged about this are right. This is an underhanded tactic, and is deliberately designed to prevent what the people want.
Many of the Republican lawmakers doing this, like outgoing Senate Majority Leader Arlan Meekhof, are term-limited and can’t be held accountable by the voters.
Now it would have been perfectly legitimate to have allowed these proposals to go on the ballot and then campaigned against it, even spending millions to try and persuade voters to reject them. They didn’t do that, because that would have been hard, expensive and they frankly didn’t think they could win. Instead, they chose to play dirty, and it’s working.
However, what’s happening at General Motors is something else again. I don’t pretend to know the automaker’s long-term strategy, and the appearance, or “optics” of Monday’s plant closing announcement left a lot to be desired.
It’s also true that GM is making lots of money, and the company might not exist at all today, had Presidents Bush and Obama and the taxpayers not bailed them out.
But as far as I can tell, General Motors’ moves made business sense. The old, insular, pre-bail out GM probably wouldn’t have closed these plants and eliminated these lines.
Not yet, anyway. But that was the GM that sometimes lost $10 billion dollars a year, and which eventually ran the company into the ground. Mary Barra and her board know there isn’t going to be another taxpayer-funded bailout, no matter what happens.
They also know this: People aren’t buying the cars they are eliminating. The Buick Lacrosse was barely selling. Chevy Cruze sales are in free fall, the Volt was losing market share.
And the Chevy Impala had become an old man’s car. Younger people aren’t buying cars much at all; they want SUVs, and when they do buy sedans, they aren’t these.
General Motors first duty is to stay profitable and plan for a successful future, even when that is painful. Michigan politicians may be doing their best to betray the public trust this week.
GM’s duty to the taxpayers is to do their best to stay alive for the long term, even when that involves short-term pain. If these cuts help them get there, they are worth it.
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