As media outlets discuss the situation of the Big 3 automakers in Detroit, one argument I’ve hear offered up is that we should help them because they have paid good wages with good benefits to their employees, and the automakers shouldn’t be punished for taking care of their employees. This argument is so colossally stupid that I don’t know how anybody with a 10th grade education can make it with a straight face.
First of all, the Detroit automakers are suffering for several reasons, and over paying labor is only one of them. I’d say that not adjusting the a changing marketplace and making crappy cars that screwed people out of thousands of maintenance dollars are probably two bigger reasons they are suffering. But the wage argument has the underlying assumption that it is somehow noble to overpay your employees, as if management, and not a labor market, determines wages.
At its core, this is not hard problem to understand. Basically the Big 3 cannot sell enough or charge enough to cover their expenses, and the big chunk of those expenses are wages, some of which top $70 per hour for line employees. Because of the overpayment and overpromises, these three companies are having a long, drawn-out death. It’s a death that is going to leave thousands of people without work, and without any paycheck or health coverage. Thousands of people are going on the dole to be supported by everybody’s taxes. Still think it’s noble? If they had stood up to the union, and adjusted their wages and benefits years ago, they would be in a much better place today.
Which brings me to a point that nobody discusses; America’s two-faced approach to capitalism. We love the variety of choices and low prices competition offers us. But then we turn around and badmouth the cost and wage controls that are necessary to compete in a competitive marketplace. We hate the fact that English isn’t the first language of cashier are McDonald’s, but we love that a McMuffin costs $1.50. We say “ship those Mexicans home,” but we love that they will mow our lawns for $20 in 100 degree heat. We cry that our manufacturing jobs go overseas as we brag about buying two end tables for $30 at Target. You can’t have one without the other. If McDonald’s suddenly decided that they were going to pay everybody $50K per year, they’d have to charge $8 for a McMuffin. Are you going to buy that the $8 McMuffin? Me neither.
Remember: a company that behaves in a non-competitive manor is just sowing the seeds of its own demise. And then nobody gets paid.
NFL Divisional Playoffs
January 9, 2009 by MikeI feel pretty good about going 3-1 last week. The Falcons played a terrible game against the Cardinals, so what are you going to do. I had a pretty solid read on the other games. I said the Chargers-Colts would come down to the last possession (it did), I said the Ravens-Dolphins could get ugly (it did), and I said that Jackson couldn’t handle the Eagle’s blitz packages (he couldn’t.) But, the Wild Card week is done and now it’s time to move to the Divisional Round.
TITANS (-2.5) vs. Ravens
My take-away from the Ravens victory over the Dolphins was how the Ravens offense was not very impressive. Did you know that the Dolphins had the 15th best defense during the regular season? And against that mediocre defense, and with 4 turnovers, the offense only scored 20 points. (1 turnover was returned by the defense for a TD.) And if you watched the game, the Ravens didn’t really move the ball smoothly. It was not an offense to inspire confidence.
Now the Ravens are back on the road against the leagues 7th ranked defense. I’m not sure they’ll score 10 points. Of course, the Ravens have their #2 defense with them, and that’s what makes this one a tough call. Flacco and company can score 7, the defense can score 7, and they can win this game 14-10 without a problem. This one’s tight. In the end, I’m going to take the team who is at home, coming off the bye week, with a more experienced quarterback.
Pick: Titans
PANTHERS (-9.5) vs. Cardinals
Not many people thought the woeful Cards would even be around this weekend, and nobody thinks they can touch the Panthers. The Cards played terrible on the East Coast this season, and one of the star players is banged up on questionable. To top it off, the high flying offense is going to face a kickoff temperature in the 40s and possible rain. It looks like an impossible task.
And it may be. But I just can’t lay 9.5 points here. I could easily see a scenario where the Panthers dominate the whole game but the Cards get a junk TD late to cut the margin of victory to 9. It’s hard to justify laying almost 10 points during the regular season. In the playoffs, it’s ever harder. I think the Panthers likely win the game, but I’m taking the points.
Pick: Cardinals
GIANTS (-4.5) vs. Eagles
Everybody is jumping back on the Eagles bandwagon, but let’s not forget that, even with a pick-6 last week, the Eagles needed a 70 yard screen play to put away the not-very-good Vikings. The Giants B-team lost to the Vikings on a last second field goal just two weeks ago. I fear the junk TD here, or a close game the Giants win by 3, especially considering the kick-off forecast of 50% chance of snow and 31 degrees. But I think the Giants are the better team.
Pick: Giants
STEELERS (-6) vs. Chargers
I’ve gone on record all year saying that don’t think the Steelers are legit. There is just something about them that looks off. Been doesn’t look sharp, Willie Parkers looks a step slow, and that O-line looks weaker than normal. But, they managed to win more than they lost, won the North and a first round bye, so that was an increasingly hard argument to make.
Big Ben has laid some stink bombs this season, most notably against the Colts. He’s been banged up all year and is coming off a concussion so bad he had to wheeled off the field. Now he’s going to suit up against a defense that is suddenly full of confidence after taking the arena league-like Colt offense to the woodshed. Put all that together, and it’s just not a pretty picture. Combine that with a Chargers team that has looked very solid down the stretch and I think 6 is too many points here. If it’s a straight pick ‘em, I’m thinking harder. If you give me 6, I’m taking the Chargers. I don’t think there too much separating these two teams at this point.
Pick: Chargers
Last Week: 3-1
Tags: NFL, NFL Commentary, NFL Divisional playoffs, NFL Playoffs
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