Twinkie Capitalism

Hostess, maker of Twinkies and Ho-hos, is owned by a Bain-style Hedge Fund. The recent closure is a Romney-style shafting of the workers in order to make even greater profits.

While business pundits decry the Union killing Twinkies, fact is, the Union has made concession after concession to keep Hostess afloat, and profitable. But there is never enough for today’s capitalist. Hostess has chosen to use the bankruptcy process not because it can’t manage its affairs but because by doing so its owners will make even more money.

Bankruptcy allows the Company to break its contract with the Union, fire Union workers and dump its pension obligations.

Since many private pensions are insured by the Federal Government, the Company successfully shifts costs to the taxpayers while then guaranteeing its owners more profiteering. This is the Socialism of the 21st Century: Profits are privatized, and Costs/Losses are Socialized.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s