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1. JORGENSEN CONSULTING CO., INC.
304 Garrison Circle • Port Barrington, IL 60010 • Phone: (847) 462 8411 • Cell (630) 960 3180 • E-mail jccin@comcast.net
ENGINEERING PRODUCT DEVELOPMENT • PROJECT MANAGEMENT • MODERN MANUFACTURING STRATEGIES
December 11, 2008
Subject: Government Can Not Run Auto Factories
Honorable Barack Obama:
The government and politicians are not qualified to run the automobile companies but can contribute to solving one of the root causes of their problems.
The unions and management had promised workers retirement benefits that are were based on payments in the future. Now there are more workers retired than working and the future has arrived so in these depressed times it is impracticable to continue this practice. Therefore what should have been done in the early years of this practice and what can be done now?
In the years past had management had some long term common senses, they would have opted for a different kind of retirement plan that put money away into a non-touchable retirement fund until the day of retirement. This is also the same problem that social security has by basing funds for social security on payments of future generations. It should essentially be pay into it as you go.
So rather than the government micromanaging a complex company they know little about, the government can take over at least a part of the retirement accounts and let the companies run their business. For survival it will be up to them and the unions to decide how much to cut everybody’s salaries to survive. After all many small companies have been cutting employees and salaries several times during the last year and it is about time the large companies do the same. It is better to be working at a fraction of a regular pay than no job at all. If they survive great, if not, let them fail.
Sincerely,
Arne R. Jorgensen, PE
Posted at 10:25AM on Dec 11th 2008 by Arne R. Jorgensen, PE