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18,000 out of a job at Hostess: Shrugging and who can blame them

Posted by overmanwarrior 12 years, 7 months ago to Business
34 comments | Share | Flag

It's a shame, but no company can function when the product mix changes that much, and the employees refuse to adjust to that market.


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  • Posted by grover 12 years, 7 months ago in reply to this comment.
    It really doesn't make any difference why a company Shruggs. They do for reasons they know and the union became their reason. Business decisions are going Galt regardless of their statements. Which of those that went Galt left a reason? They just did it.
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  • Posted by grover 12 years, 7 months ago
    Although it is easy to blame the company or the union, the real culprit, of course, is the federal government that imposes Obamacare on us. Add in there the NLRB for their totally union biased operations. Screw the unions. Different companies have different reasons for going Galt. Here is a good example of one more doing it.
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  • Posted by WWJGD 12 years, 7 months ago in reply to this comment.
    I really don't think it's instructive to view this through the lens of Atlas. I'm willing to be corrected of course, but I've seen no statements from Hostess management that have any hint of Shrugging.

    I think this one is purely a business decision. They were already in Chapter 11, teetering on the edge of oblivion, and someone gave them a push.

    I don't think they chose to die. I don't think they really had much of a choice.
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  • Posted by terrycan 12 years, 7 months ago
    The bakers union lost the "sanction of the victim." The only way we can be used is with our permission. Rearden was one of the last to go Galt. Hostess might be more like Danagger Coal or Hammond Automobile. Who/what company is next?
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  • Posted by WWJGD 12 years, 7 months ago in reply to this comment.
    "When will the Unions and the Politicians learn that Economics trump their perceived power?"

    You already know the answer to that one, don't you?
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  • Posted by ObjectiveAnalyst 12 years, 7 months ago
    When will the Unions and the Politicians learn that Economics trump their perceived power? The real power is held by the producers / business owners and the laws of economics/ market forces which the business owners must respect. Government unions are the leading problem because the government’s ability to tax and print more funding distort the market, lead/ drive the demands of non-governmental unions and inflate compensation beyond sustainability in down markets. Apparently a full blown collapse/ strike is required. I have always been a holdout to the strike, more like a Reardon than a Galt, but it is becoming apparent that the takers would rather see Iconic American companies fail before they accept economic reality. Now I am leaning in the direction of Galt since the takers have increasingly demonstrated their ignorance and disregard for basic economics. They need a lesson in reality. The repercussions are unfortunately going to be painful for all, not just the takers, with the possible exceptions being the politicians who isolate themselves with a printing press.
    O.A.
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  • Posted by fatkinson 12 years, 7 months ago in reply to this comment.
    They may have represented those union people.
    But they didn't represent their best interests.
    Atlas did indeed shrug and indeed he should have.
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  • Posted by Solver 12 years, 7 months ago
    This is ultimately the fault of those union administrators that claim they represent the view of all their members. A failure of a “collective mind.”
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