Trucking firm, YRC Worldwide, Inc., has applied for a governmental bailout seeking $1 billion in federal money to help relieve pension obligations. Last month, the company reported a first quarter loss of $415 million, and states that the $1 billion in relief money would help them cover the cost of an estimated $2 billion in pension payouts over the next four years.
Many oppose the plan citing that the so-called stimulus plan is not working and it’s already giving undue power to the government, in areas where it does not belong – i.e. auto makers, banks, etc. Many experts believe that YRC has no chance in receiving the bailout funds anyway, but the mere application by the trucking company opens the door for many other companies and organizations to seek bailout assistance from the Federal Government, throwing our country more into debt than we are already capable of handling.
On the other hand, some groups believe it is quite possible for the firm to receive the billion they are seeking. Why? Because the problem with YRC is not its trucking company, but its union pensions. Politicians work for big special interest groups. Unions are some of the most vital groups that Democrats have. Therefore, some believe that the Democrats will want to bailout unions, just like the Republicans sought to bailout banks.
With our country slipping into bankruptcy and the furthering of building big government as their top priority, many people wonder “will this bailing out scenario ever end?”
© 2009, Allen Smith. All rights reserved.