Sometimes I wonder if Obama and the democrats dream of being France instead. France elected a socialist government, and the results are now starting to be seen. The article below is about the process of “nationalization” whereby the government takes control of a business, for the good of the people, and in the examples below, for the good of the labor unions. Unions, corrupt criminal politicians, and socialism, an evil mix.
Nationalizing businesses is the end-game for socialists. The glorious leaders champion the people, the collectives, the unions and take over capitalistic businesses for the good of all people. This usually happens when all of other people’s money runs out, and there are statist entitlements and pensions to be paid. The last thing to loot in any country are the businesses and wealth of the people that provide jobs.
My question is: How long until what is happening in France (and Greece and Spain for that matter) start to happen here. When the government can’t borrow or tax anymore money, it will be nationalization versus austerity. U.S. Businesses have huge cash-piles laying around, unwilling to invest or grow in this government-toxic business environment. A few easy pen-strokes by Obama, and viola, the government controls everything. Don’t think it can happen here? It’s already happening in France.
Nationalizations Take Off In France
Submitted by testosteronepit on 11/29/2012
Wolf Richter www.testosteronepit.com
The nationalization debate has been sizzling on France’s front burner since last week when Industry Minister Arnaud Montebourg lashed out at the world’s largest steelmaker, ArcelorMittal. He threatened to nationalize its plant in Florange where some old blast furnaces had been shut down for a year-and-a-half. At stake were 2,500 jobs. “We no longer want Mittal in France,” he told the Indian owners—though the company has 20,000 employees in France.
Breaking into a cold sweat, executives around France reevaluated their investment plans. Just then, unemployment hit a 14-year high. Creating jobs was needed more than anything. Scaring off investment was not. Whether his threat was a form of extortion or an announcement of a hostile takeover remains to be seen. But it opened the door for unions at another troubled company to demand nationalization, and the socialist government might not be able to resist.
The three unions—CFTC, Solidaires, and Force Ouvrière—that represent the workers at the shipyard Chantiers de l’Atlantique at Saint-Nazaire on the Atlantic coast demanded in a joint statement today that the government “must become totally involved to guarantee the future of the shipyards” and must become “a majority shareholder.” Jean-Marc Perez, Deputy Secretary of the Force Ouvrière, clarified: “Nationalization is unavoidable.”
Chantiers de l’Atlantique is famous for building the largest cruise ships and supertankers in the world, including the Queen Mary 2, the largest ocean liner ever. But it’s in trouble. Its future is uncertain. Its order books are empty; no new orders are coming in. By 2013, after finishing the current projects, it will be practically without work.
MSC Croisières, its largest customer, put on hold any further investments in cruise ships. Last April, Viking Ocean Cruises cancelled its two cruise-ship orders that had been announced with fanfare just a few months earlier. And a proposal for new ferries for SNCM, a ferry operator in the Mediterranean, isn’t likely to go anywhere—SNCM was privatized in 2006, though the French government still owns 25%. And if the shipyard wants to diversify into offshore oil and gas rigs and windmills, two of the few sectors still doing well, it will face competition from companies around Europe that have specialized in it for a long time.
Employment at the shipyard is down to 2,100 workers, the lowest in its history. Of those, about 1,000 are on partial unemployment. Of the 4,000 subcontractors who still worked there a few months ago, only a little over 1,000 are left. It’s tough for companies in France [Stimulating The Public Sector, Suffocating the Private Sector].
In their desperation, the unions appealed to Montebourg for help, initially last June. Over the summer, they asked for another meeting. Without response. To draw attention to the “silence of the government,” 500 workers went on a one-hour strike at the end of September. Voilà, on October 15, when Montebourg was in Nantes for another event, the union leaders got their meeting.
Afterwards, instead of making earthshaking announcements, he only said that the government would do “its utmost” to defend the shipyard. “Our position is to find economic solutions, in other words, work,” he said. That was a bit too wishy-washy for the union leaders.
But they did sense that he was determined to maintain the shipyards and the special skill sets. Hence hope that the shipyard might not be closed and that a government sponsored program could retrain workers to build offshore oil and gas rigs or windmills. But diversification, if at all possible, would take time. The immediate solution was nationalization. Once the state owned it, closing the shipyard and laying off workers would become, for a socialist government, politically infeasible.
But ownership is already complicated. One of the largest shipbuilders globally, STX Europe owns 66.66% of the shipyard. Headquartered in Oslo, it owns 15 shipyards around the world. It, in turn, is owned by the Korean group, STX Corporation. And who owns the remaining 33.34%? The usual suspect: the French government.
The unions are blaming the majority owners, “the Koreans,” a convenient and distant target. “We don’t see the Koreans, they have done nothing. It’s the state, a minority shareholder, that finds itself playing substitute boss, even though that’s not its role,” said several union sources.
So begins another melancholic chapter in the deindustrialization of France. While privatizing state-owned companies has been all the rage since the mid-nineties, by socialist and conservative governments alike, the current morass in the private sector has stopped that process. The dominoes are lined up. Nationalization is being brandished as a solution.
The government, once it owns a controlling share, could force companies to continue operating and employ people, whether or not they have any work. But it’s an illusory solution. The government already owns a third of Chantiers de l’Atlantique, as it owns major stakes in many large companies. Some, like mega utility EDF, it owns outright. Despite—and cynics say, because of— this profound government ownership, the private sector is in deep trouble, and even more government ownership is unlikely to cure its ills, but might strangle it altogether.
In France, socialism isn’t a political movement that swept the elections. And it isn’t an economic philosophy that moved once again to the forefront. But it’s part of the DNA of much of the population. And it produces some classic reactions. Read… Nationalizing Companies Is Part Of The French DNA.
And here is another government-company saga: the folks at Gazprom, majority-owned by the Russian government, are reveling in the mockery that has been made of a Ukraine-Spain gas deal that would have loosened Russia’s stranglehold on Kiev. But this is what happens when you mess with Gazprom. Read…. Ukraine Crushed in $1.1bn Fake Gas Deal.
AWD says:
Obama’s Twinkie Socialism
Saturday, November 17, 2012
Forced government “ownership” of the means of production to save labor union jobs.
Socialist Democrats now believe that “troubled” unionized businesses need to be owned or co-owned by Big Brother government to protect union campaign contributions to the party.
Hugo Chavez and Fidel Castro would be so proud of their protege.
Politico reports that a new White House petition wants Comrade Obama to nationalize the “Twinkie industry,” saving the popular junk food (made by union labor) from possible extinction.
Naturally the White House does not give a shit if non-union mom and pop businesses go under.
“We the undersigned, hereby request Barack Obama to immediately Nationalize the Twinkie industry and prevent our nation from losing her sweet creamy center,” a petition on the White House “We the People” website requests.
Hostess Brands Inc. — maker of the Twinkie, the Ding Dong and Wonder Bread — is preparing to shutter operations amid a labor strike and rising costs. Unionized workers rejected a major pay and benefit cut, sparking the latest strike.
(Translation – Labor unions fund the Democrat Party and their jobs and political contributions must be saved with taxpayer money.)
Labor leaders say the standoff represents “Bain-style” vulture capitalism — a reference to former GOP nominee Mitt Romney’s private equity firm.
“What’s happening with Hostess Brands is a microcosm of what’s wrong with America, as Bain-style Wall Street vultures make themselves rich by making America poor. Crony capitalism and consistently poor management drove Hostess into the ground, but its workers are paying the price,” AFL-CIO president Richard Trumka said in a bullshit and fucking stupid statement.
A full shutdown of the company resulted in as many as 18,000 job losses.
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30th November 2012 at 4:44 pm
AWD says:
Oops, too late.
Nationalization of GM, healthcare, student loans, mortgage lending, already happened.
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30th November 2012 at 4:47 pm
Anonymous says:
“Breaking into a cold sweat,”….kind of like I did on Nov. 6, 2012. And for the same reason.
So, how hard is it to get those free homes, snap cards, phones and other good stuff?
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30th November 2012 at 5:19 pm
Hope@ZeroKelvin says:
Let ‘em nationalize the whole damn country. Fuck it.
Let our healthcare be delivered with the efficiency of the Post Office, the compassion of the IRS, at Pentagon prices.
Let our food and fuel industries be run with the forward planning and budgetary foresight of the US CONgress.
Let our foreign defense be run with the same clarity about real enemies and threats as the current State Department, allujah akhbar, peace be upon all jihadis.
Let our Treasury be run by Bernie Madoff and Goldman Sachs. Ponzi Forever!!!!
Let our justice system be run by Al Sharpton, Eric Holder and their ilk.
Let all 62 millions libtard proglodytes that voted for this worldview experience the consequences of their votes: The utter misery, economic destruction, hunger, violence and complete societal dysfunction that these ideals always result in.
Cuz when then Red State people just stop producing, the whole thing falls. In a way, the Makers are supporting the Takers.
Let it fall. Expose the liberal progressive worldview for the complete insanity it is.
FORWARD to the abyss!!!
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30th November 2012 at 9:48 pm
Makati1 says:
I understand that the above pictured notes will come in soft rolls available in Walmart for body sanitation, as that is all they will be worth. Many things are coming for the Us that the sheeple have no idea of, including total collapse and a police state that will make Nazi Germany seem like Woodstock. But. I could be wrong and Mother Nature will say “Enough!” and pull the plug on humans before then.
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30th November 2012 at 9:48 pm
Ron says:
People write stuff like ,your crazy about this socialism stuff.(other sites) I say look around ,there is so much stuff the government is involved with,it would be easier to just list what few things they dont mess with.
I still think the last part of that movie 2016.The producer lays it all out really good.Obama wants us to get knocked down to the level of third world countrys.All you evil white men who stole natural resources from poor countrys.Well something to this effect.
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30th November 2012 at 11:31 pm
Nickelthrower says:
Actually, it is the Red States that are the biggest recipients of government largess. For example, California receives .78 for every dollar it pays in federal taxes unlike, say,
New Mexico $2.03
Mississippi $2.02
Alaska $1.84
Louisiana $1.78
West Virginia $1.76
North Dakota $1.68
Alabama $1.66
South Dakota $1.53
Kentucky $1.51
Virginia $1.51
Yup, look at those worthless RED States living off of the hard work of States like California, New York and New Jersey. Those BLUE States make it possible for the hillbillies in these other states to have roads and schools – thank you very much.
Hot debate. What do you think?
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30th November 2012 at 2:40 am
Kepi says:
Nationalization is the natural response of any nation trying to reign in out of control international corporations. Nationalization of resources is a little sketchy, but nationalization of infrastructure is a wise decision.
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30th November 2012 at 4:36 am
Kepi says:
Nationalization is the obvious response to out of control international corporations. Nationalizing resources is a little sketchy (but can be jusifiable), nationalizing infrastructure is a wise decision.
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30th November 2012 at 4:54 am
Kepi says:
Fucking hell. My comment kept not showing up, then I reposted it so the comment shows. Awesome.
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30th November 2012 at 4:55 am
taxSlave says:
Hey Nickel,
The problem is that the federal government steals money and gives it away.
Fuck the red/blue ra ra bullshit.
The federal government is an evil corrupt gang of murderers, thieves, and thugs, period.
You want ra ra? Go watch a bunch of overpaid, drugged up children play football or basket ball or base ball.
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30th November 2012 at 6:58 am
efarmer says:
Nickelthrower,
Perhaps those states receive more than they receive because they are so frickin poor they don’t pay as many taxes?
Just wondering…….
EF
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30th November 2012 at 9:23 am
Hollow man says:
New mexico , at least is solid obama commie.
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30th November 2012 at 9:26 am
Hollow man says:
This country is a lost cause.
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30th November 2012 at 9:29 am
Clownbucks says:
Red states now BLUE like Virginia get money because it is the home of the largest naval base in the world. Portsmouth VA is simply a federal annex. They have little tax base because the feds own the land and facilities. The Virginia DC metro is all government.
California is merely Mexico’s toilet at this point.
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30th November 2012 at 10:11 am
KaD says:
“When the government can’t borrow or tax anymore money”-won’t they just keep printing it? At least until America becomes Zimbabwe?
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30th November 2012 at 11:34 am
Thunderbird says:
My take is the nationalization of the major corporations will be a good thing for small business and the country in general. Why? Because nationalization of a company always leads to inefficiency and decay of the company nationalized. This will open the way for competition.
Just look around and see all the opportunity that is there today in providing quality products and services.
It is true that many small businesses have closed or are closing down. Many of these closings are due to owners retiring or dying. This is creating a demand for new people to fill the empty spots that now exist for products and services.
One spot to look at is the fast food industry. Has anyone noticed how much the quality of the food has gone down, and the way the portions have shrunk in this sector? I won’t name the brands, but one who eats the food knows these brands have gone downhill in quality. Commercial food franchises are going downhill and will be closing down in vast numbers as food prices increase and people realize they are eating out of the pigs trough. People like to eat on the run but at the same time they like to eat descent food for a reasonable price. This is no longer possible with corporate food because the corporate overhead is too high to support what the franchises once had to offer. One can already notice different fast food outlets combining their operations. This is a dying corporate cycle which is supported by arbitrary government regulations designed to keep the small business competition out of the picture.
Nationalization is being talked about because many of the large corporations are dying. Certain corporations will be kept alive by nationalization because they are vital to national defense; but they will be eventually downsized to their proper size for national defense purposes. This will open the door to more private companies being created to fill the demand for products in a more efficient way.
The government cannot create profitable wealth creating jobs and they are at the end of the rope in creating non profit government jobs. For government, the golden goose is tapped out.
In the months ahead look for the government to be shedding jobs like a snake shedding it’s skin. It will be a natural event, even through all the public unions will be kicking and screaming as the process unfolds.
Government for so long has created a false GDP by it’s wild spending and over hiring. The false economists will claim this coming trend will be bad for the economy, but it will be the opposite.
Cutting government spending and laying off so many government workers along with private sector defense workers will cause a loss of demand for the foreign products we are paying so much for. This will cause deflation to occur. As deflation spreads and the cost of products decrease in price who do you think will benefit from this? It will be the savers and the common person wanting to provide goods and services along with customer service. Who will be the losers? It will be global corporations who have capitalized on making vast profits on indentured labor from foreign countries. In other words everyone gains except the global corporations who have always raped the resources of this planet at the expense of everyone else.
Government at all levels over the years have been hijacked by the large corporations and the public unions to serve them rather than serve the people or small business. But in life the pendulum always swings both ways regardless of how big any entity gets. Now the pendulum has stopped swinging toward big government, big corporations, big banks, and big military. It is swinging toward the breakup of all these big entities and the establishment of smaller de-centralized entities in all these sectors. We are hearing the death rattle of all these big entities but it is being given a spin to us as a need for more government control; which I do not see as happening providing the people can see as I do, the light at the end of this communist/socialist/fascist tunnel of shadows on the wall.
Yes unemployment is going up and will continue to go up as this necessary adjustment happens. But look around at all the opportunities starting to show up for new products and services. When government finally shrinks to it’s correct size to serve the people; not the corporations, then will it be out of the way for small business to take off. When small business and the wage earner are no longer accountable to the IRS, then this economy will explode. Government at all levels that has been serving the large corporations and supported by forced private taxes on the people and small business is our problem. What? Yes, government that serves the large corporations, banks, and large special interests, while being supported by taxing people and creating large sums of debt to support it’s unconstitutional activities is our problem that we have acknowledge and correct. But we won’t have to initiate the correction, as it is already happening. We just have to go along for the ride and not get caught up in the negative spin of those not wanting this change to happen.
The darkness is always the greatest before the dawn. Have faith my friends, as things will work out for the better. The fall is coming for these dark forces.
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30th November 2012 at 1:42 pm