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Russian Stimulus Package - Bail Out, Despite Economy Improving
Despite the Russian government stating that the economy is on the rebound....
The Health and Social Development Ministry announced massive layoffs by the end of the year from GAZ and Aeorflot. Some areas expect 75% of people losing their jobs.
Car giant GAZ Group is owned by the ex-richest man in Russia, Oleg Deripaska. It is not the first time he has had money given to him by the government. GAZ is also a strategic partner in the Magna-Sberbank deal to buy Opel from GM last week.
Bail-outs are happening in many countries (watered-downed by calling them the stimulus package). Corporations rule our governments with the threat of destabilization the country. And despite laws, it is their money that elects the politicians.
“There is a possibility that the recently released layoff figure is a way to intimidate the federal authorities,” Gimpelson said. “AvtoVAZ, which threatened layoffs earlier, will get government aid as announced today.”
Giving money to the big corporations is not the answer. They mismanaged the money and lived lavish lifestyles on the worker's sweat and tears. Now is the time for the people to own their own companies. I can understand the government needing to keep their country stable, but don't give money back to the incompetent. Put the money into the hands of the workers, make them owners. Things would turn around pretty quick.
Giving billions of dollars to big corporations takes away from the natural way of capitalism, and just won't work in the long haul. It snuffs out the "little guy", and stiffles innovation as surely as communism does.
Oleg Deripaska’s GAZ Group will lay off 14,000 employees, or 37 percent of its work force, while Aeroflot will fire 2,215 employees, or 14 percent of its staff, the ministry said.
The layoffs at GAZ Group, a strategic partner in the Magna-Sberbank deal to buy Opel from GM last week, will be distributed throughout its subsidiaries, the ministry said.
GAZ states the layoffs will not be that high, and would come in the form of employee retraining. Unfortunately, they retrain them to be workers yet again, rather than retraining them to run the business itself.
The same goes for North America. Our present-day education system (taken from the old Prussia model) teaches us to be workers, not leaders. Even in higher level education, we are still not taught to think for ourselves, but heavily guarded to "follow the rules".
Unless you go to a Waldorf-type school.
Every Waldorf student is seen as a unique human being developing physically, emotionally, socially, intellectually and morally.
About ten years ago, first schools based on educational principles formulated by Rudolf Steiner began to appear in Moscow and other major Russian cities.
“We’ve recently launched a personnel retraining program that will either raise workers’ qualifications or prepare them for working in a different sector,” she told The Moscow Times. “Workers will be paid the main part of their salary throughout the yearlong training course.”
The first course started Sept. 1 and included 4,000 employees, she said.
Retraining seminars are part of a federal government effort to limit a surge in unemployment during the economic crisis. The government, worried about widespread unemployment leading to social unrest, has put together a billion-dollar jobs stimulus program.
“The problem with most of the companies that are state-owned or partially state-owned is that they usually have too many people working and are not operating very efficiently,” Jones said.
“These companies need proper structuring, and job cuts should have been made years ago, as these kind of reforms should be made in good times,” he said.
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sara star
Halifax, NS, Canada
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Anonymous user
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The_Cynic
Freddy Beach, Where the deer r, Canada -
Amy Judd
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albertacowpoke
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Most RecentMost Recommended Comments (4)
at 06:11 on September 19th, 2009
Good post with some food for thought.
at 07:07 on September 19th, 2009
Excellent story Sara. but Russia is still for the rich, while the poor languish around the subways and tourist areas looking or food, when I was in Moscow, babushkas would go to graveyards, steal the flowers and sell them on the streets. Now how desperate is that I ask you?>
at 07:09 on September 19th, 2009
Very good story.
I think Russia is closer to recovery than most other big countries.
at 08:41 on September 19th, 2009
Socialism for the corporations but not the people - as always.