White House petition: ‘nationalize’ the Twinkie industry!

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Hostess Brands Inc. is closing down operations as labor strikes plague the dessert cake manufacturer. The  labor union running the national strike blames ‘vulture-capitalism’ for the demise of worker benefits and pay.  Politico reports:

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.

Labor leaders say the standoff represents “Bain-style” vulture capitalism — a reference to former GOP nominee Mitt Romney’s private equity firm.

Their words?  You won’t be surprised…

“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 Friday statement.

The union thus blames the business worldview of defeated Massachusetts Governor Mitt Romney, so is it fair to ask if the current president’s economic worldview led to Hostess’ demise? Did President Obama shoot Twinkie the Kid?

Seriously though, it is the union that caused Hostess’ labor costs to rise without a rise in efficiency. Inflation (from the Federal Reserve Bank, printing money to cover out-of-control deficit spending in Washington) is another reason their operational costs continuing to rise. Combine the two, and you get a perfect storm for the Twinkie going out of production. So a petition has been unveiled with a solution: nationalize the Twinkie.

“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.

Great.  Now the government can spend more money by bailing out another failing unionized business, only to cause more businesses to later share the same fate due to perverse incentives. This is a never-ending circle of death for a national economy.

The irony is that these strikes may totally close these factories… which would end up in the loss of 18,000 jobs. It’s a simple question, really: do you want to work, or not? When all of the potential severance packages, unemployment insurance, pensions, entitlements, and flat-out welfare are factored into the answer, it may be a blunt “no.”

As for the idea of nationalizing the Twinkie, Michelle Obama may stand in the way of that happening. This petition may be barking up the wrong tree, as Barack may not want to surf the couch after bailing out a failed confectionery company.

UPDATE:

As way of an amusing aside, America is not only bankrupt, but Manhattan-sized Twinkie bankrupt.

 

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