Among the many casualties of the Obama Administration’s auto “bailout” plan, one may very well be the thing that allowed uneducated Americans, which still represents the overwhelming majority of Americans, to achieve a middle class lifestyle, namely the American labor union. If GM is forced into bankruptcy and Chrysler is sold off on the cheap to Fiat (which Obama is forcing down the throat of Chrysler) one of the net results will be the eradication of the union contracts. These contracts were weak to begin with and the UAW has been making concessions at a break neck pace. It is unlikely that a bankruptcy judge is going to take pity on the union. Despite the fact that the union has already conceded on wages, health care (for current workers), layoffs, raises and outsourcing the only prize left is the legacy health care costs for retired workers and pensions. These workers will largely suffer when the GM pension program falls on the Pension Benefit Guaranty Corporation and their health care plans (which are similar to the plans received by government employees) will be jettisoned for the substandard insurance that the majority of the private sector suffers under.  If you think I am being hyperbolic, then figure $2 million dollars (a fair estimate of what is billed when one receives treatment for cancer) and calculate how much money you will have to pay out of pocket. Do not forget to factor in what your premium will skyrocket to when your insurance comes up for renewal, assuming the insurance company does not drop you entirely.

Once the union rolls over or is forced over, exactly why would anyone join a union?  The whole point of a union is to ensure that management does not run ruff shot over the workers.  But with union membership declining and union jobs dwindling the ability of a union to fulfill its promise (a fair wage and safe working conditions) is all the more difficult.  Unfortunately, this is a feedback loop which ends when the union no longer exists.

Can someone explain to me what the difference is between GM and AIG?

It seems to me that:

1. Both companies were run into the ground by incompetent management who were motivated by greed rather than the good of the company.
2. Both companies can only survive by the largess of the American taxpayer.
3. The failure of either company would have a disastrous effect on the U.S. economy (so we are told).

It appears that if your business is finance then the bailout gravy-train comes fast and with all the goodies.  If you actually make something then the bailout gravy-train comes slow and chunky.