Re: [Pen-l] labor and the auto companies

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

Your idea is interesting, but nobody would give them the finance necessary to turn it 
around.  They would loose more than the company is worth before they had time to put 
it on solid footing.

When the Youngstown steel mills were shutting down, the employers refused to 
make the sale.  My uncle, who was friends with many of the people in upper 
management, echoed their view that there would be something fundamentally wrong with 
letting workers replace management.

On Thu, Nov 20, 2008 at 09:45:29AM -0800, David B. Shemano wrote:
> A year ago I suggested that the UAW simply buy GM and the employees could then pay themselves whatever they wanted.  The total market capitalization of GM today is around $1.5 billion, which is essentially nothing.  A mind-boggling number for a company that had $165 billion in sales for the past year.  If $1.5 billion is too expensive for the UAW, GM could file chapter 11 and UAW could propose to exchange some claims for the equity and own the reorganized GM.  SOCIALISM NOW!
> 

-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com
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