Tuesday, November 18, 2008

The auto makers bail-out analogy story. Good Read!

Here's the analogy of why the Big-3 auto bail-out is going to backfire; in other words, what are the LOUC (law of unintentional consequences) of this bail-out?
 
The setting is a classroom. The teacher has announced the test tomorrow in math that was scheduled at the beginning of the semester. There are 12 students in the class: 3 are big bullies from old, money families that run the town, 3 are cousins of the Big-3 bullies, and then there is another student that part of their gang now of 6, the proverbial beta-male (look up the pack mentality of wolves to understand the reference), and then there a 5 non-aligned, smaller students from newer families that just moved to the town.
 
The Big-3, their cousins and enabler (that's 7) hear about the test, have heard about the test, but have decided not to worry about studying or getting ready. They are the Big-3, they have clout, they have standing, they have been around for a long time, they have family connections, they don't need to change or study since the teacher would NEVER fail them for fear of the consequences. Remember, she got her job because of their families' help and support. She owes them.
 
The 5 newer students know that they have to study, prepare, and get ready for the test since they don't have connections or family or lineage to fall back on if they don't do well on the test. They have devised ways to study better, be more creative in learning the material, gotten together to form study groups, get home at decent hours all to make sure they do well tomorrow.
 
After the teacher announces the test, the Big-3, their cousins, and enabler come running up to the teacher and complaining that they weren't told about the test, they haven't prepared, they haven't learned the material, and its too late to do anything meaningful to prepare for the test. They therefore tell the teacher that she can't have the test tomorrow or they will fail, they will not get a good grade, they will not be able to get into a good school, the town will have to pay for them to get welfare and extra mentoring. In other words, they have to get special treatment like a free 20pts on the exams tomorrow or the teacher and the town will be trouble.
 
The 5 outside students hear this and listen for the teacher's response which from the teacher's frown is saying that she understands and that she will probably give them the 20pts since she doesn't want them to fail, get a bad grade, and not get into a good school.
 
The 5 outside students then get angry and run up to the teacher and demand the same treatment or they will tell everyone in the town and they have her fired when her contract comes up for renewal. Since the teacher did not get her job by the support of the 5 students' families, she says that she can't do that since she can't give everyone a favor.
 
The test day comes, the Big-3, their cousins and enabler do poorly, the teacher adds 20pts to their test scores and they all pass until the next big test in 2 weeks. The 5 outside students get angry and quit studying, preparing, and finally some fail and are sent back a grade. The Big-3 and their companions are passed up to the next grade, and the outside students, now only 3, leave the town and move to other places where they are fairly treated taking their incomes and allowances with them. The town gets less money, has to raise taxes on those that remain in the town, and finally like Vallejo, CA, the town has to fill for bankruptcy in another year.
 
The 20pts only held off the day of reckoning for a year. The results were the same. The town failed, the old families had to go on welfare, and the 3 outside students and their families moved to other places and did much better since the students were more fairly treated.
 
This is the tale of the extra 20pt bail-out of the town called Detroit.
 
GET THE POINT????
 

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