Unions Kill The Twinkie

[angelatc]

They should have hammered out long term viability plans with the union heads years ago.

They have no interest in long term viability. It's grab-what-you-can-now in the new economy.

 

[Odin]

And why do you assume that only "products that make people's lives better" would be possible in a truly free market? That's a rather bizarre claim, and doesn't follow.

Fact stands that as long as there's a demand for crap food like Twinkies, someone will produce it. I have no idea where you got the idea that business exists to make people's lives better. That's a selling point for the consumer, not the ends of even good-hearted businessmen.

That's the goal of economic activity. Most of the time consumers have rational demands but the government often intervenes in the market and demands are skewed because prices are skewed. That usually leads to a misallocation of resources which requires a recessionary period to correct and re-balance.

I never claimed that businesses exist to make people's lives better, but the principle of free market capitalism is that the end result is rising quality of life because it is the most efficient means to meet rational demands.

But if the market puts something pointless like twinkies out of business and reallocates the resources to something more productive, I would be very happy. However I did add the caveat that I don't think that will happen.

 

[JK/SEA]

http://www.americanthinker.com/blog/2011/09/union_violence_of_little_interest_to_media.html

http://blog.heritage.org/2011/09/08/in-labor-dispute-500-union-members-storm-port-take-six-hostages/

Slave wages? Stop that.

i'm pretty sure you wouldn't work very long in some of the Bakery's i've been in for slave wages...i consider 10 bucks an hour slave wages in this example.

 

[Odin]

Twinkies make my life better. I pick Twinkies.

So if I offered you a free computer, or 100 boxes of free twinkies (pretend they are worth the same amount of money), you would take the twinkies?

lol ok if you say so. You won't have any more twinkies because they are going out of business. I guess you'll have to make do with dum dums or whatever the imitation thing is called.

 

[PauliticsPolitics]

Ha. even on this forum people politicize everything.
Hostess has been struggling for 10+ years.
They already went bankrupt in 2004 (in a "good" economy and with a GOP prez...)
Yea, bad management. Yea bad unions. Yea their products don't sell as much anymore.

Regardless, for all the twinkie lovers, I'm sure the company will either re-start. Or they will sell their brands to other companies (like Kraft) as part of liquidation.

 

[Elwar]

as part of liquidation.

So you are saying that there will be a twinkie liquidation?

mmm...

 

[Brian4Liberty]

Lol, that article says it all! A restructure plan devised by a Democrat and a couple of ex-Goldman Sachs guys. It's Solyndra and Greece combined. We all know where that ends up.

As much fun as it is to talk about Unions, IMHO, the company was doomed when it put it's fate into the hands of vulture capitalists who could make money by letting the company fail and selling off the assets. Might as well borrow money from Tony Soprano.

 

[angelatc]

As much fun as it is to talk about Unions, IMHO, the company was doomed when it put it's fate into the hands of vulture capitalists who could make money by letting the company fail and selling off the assets. Might as well borrow money from Tony Soprano.

Anything other than maximum profit is malinvestment of capital.

Speaking of vulture capitalists: Twinkies, Ho Hos going for $100 and more on eBay

 

[JK/SEA]

Why do companies in those states not just move their manufacturing plants to right to work states?

There are plenty of people here in Florida who would work on making twinkies.

yeah...they might for awhile. Employee turnover would kill the industry.

 

[JK/SEA]

As much fun as it is to talk about Unions, IMHO, the company was doomed when it put it's fate into the hands of vulture capitalists who could make money by letting the company fail and selling off the assets. Might as well borrow money from Tony Soprano.

yep.

 

[Acala]

hmmm....Union violence today is more of a myth than fact. Union violence today if it does occur,is limited to petty vandalism like a flat tire. When was the last time anyone was killed from Union violence?...history of Union violence was often times perpetrated by Company goons busting heads, and shootings of picket line workers at the behest of company owners so they could keep paying slave wages, and not have to improve working conditions.

Right. The lawsuit that I sat in on a few years ago arose out of a local Teamster election. The thugs supporting one candidate thug broke into a rally of thugs supporting the other thug candidate and shoved an icepick between his ribs and punctured his lung. All for the benefit of the workers, of course. And back when I was in high school, the Teamsters went on strike and "somebody" started dropping cinder blocks off the overpasses into the windshields of passing "scab" trucks. Probably just some kids.

 

[Odin]

I don't think some people realize the extent of ill-effects that government and civilization has had on human freedom.

We evolved as hunter-gatherers and our instincts are tuned to that. Imo you can only achieve happiness through the fulfillment of those instincts.

A human being is not meant to sit in a cubicle all day and then drive to Ralphs and buy 5 boxes of twinkies and eat them. That is a personal deprival of freedom.

 

[AuH20]

As much fun as it is to talk about Unions, IMHO, the company was doomed when it put it's fate into the hands of vulture capitalists who could make money by letting the company fail and selling off the assets. Might as well borrow money from Tony Soprano.

But didn't the vulture capitalists inject 170 million into the company? Obviously, they were trying to put lipstick on a pig but...

 

[Brian4Liberty]

Anything other than maximum profit is malinvestment of capital.

Who says what is "maximum profit"? There is long term risk/reward to consider. A venture capitalist who invested in Apple in 1997 and sold as soon as the stock rose 20% made a foolish decision.

 

[Brian4Liberty]

But didn't the vulture capitalists inject 170 million into the company? Obviously, they were trying to put lisptick on a pig but...

There were multiple players. The Democrat that invested money wanted the company to succeed. The Goldman Sachs guys wanted to make a quick buck. It was the Goldman Sachs guys who pulled out the rug.

 

[jbauer]

i'm pretty sure you wouldn't work very long in some of the Bakery's i've been in for slave wages...i consider 10 bucks an hour slave wages in this example.

Ok now $10/hr. What is/was the going rate for a "fast bakery" line worker at your competitors? You can't call something slave wage without knowing the going rate for a "fast bakery" worker. Either way I'd start looking for a job because you can kiss the bulk of that pension you keep talking about away. It will end up in the federal pension guarentee program at 65% and they'll find a way to strip all the cost of living out of it.

Regardless between the union and mangment they both sunk the ship. Both sides are going to blame both sides its the Amerikan way.

 

[angelatc]

Who says what is "maximum profit"? There is long term risk/reward to consider. A venture capitalist who invested in Apple in 1997 and sold as soon as the stock rose 20% made a foolish decision.

That depends on how the freed up capital performed on his next investments.

 

[JK/SEA]

Makes me wonder how the hell Oroweat and Franz manage to stay open.....wait...i know. People that give a shit about making good product and making money. This would include Union workers and good management...and owners.

 

[angelatc]

i'm pretty sure you wouldn't work very long in some of the Bakery's i've been in for slave wages...i consider 10 bucks an hour slave wages in this example.

Yes, yes, and John McCain said none of could last a day picking lettuce, either. We are weak and obviously deserve everything we have coming to us.

 

[Confederate]

i'm pretty sure you wouldn't work very long in some of the Bakery's i've been in for slave wages...i consider 10 bucks an hour slave wages in this example.

If you don't want to do it for $10/hour I'm sure there are thousand of Mexicans who would eagerly line up for a chance at your job.