Union Kills The Goose that Lays the Golden Twinkies–Hostess Bites the Dust

Roughly 600 Utahns lost their jobs at an Ogden area Hostess plant as Hostess finally threw in the towel. A combination of onerous demands by union workers coupled with a tough economy caused by bad government decisions has destroyed another 124 year old company. It’s hard to compete in a tough market when government and unions are tearing at your budget. Nationwide ~18,500 Hostess employees will lose their jobs. Rack up another Obamanomics miracle victory over business! Yippee, another one bites the dust.

I’ll bet the Occupy Movement just did a back flip for the joy of it all! (see: https://www.area-info.net/articles/adv_search_results.php?cty=&st=) The socialists will be overjoyed to see another wicked business out of business. After all, aren’t these business owners terrible, greedy people? Now all those workers are free to make a better life for themselves and not have to serve the greedy customers and greedy free market capitalist. Strike one for Marxism. I’m sure there will be a productive government job waiting for all those good union members. Some of the non-union workers at the plant in Ogden may feel it’s a little sad that the union efforts to redistribute the wealth created by Hostess ended up killing the goose that laid the golden eggs. Oh well, what’s another dead goose?

Maybe we can buy baked goods from China. Maybe the Chinese will buy up the Hostess brands and we’ll still be able to buy Twinkies. Perhaps a global bank will lend me the money to buy the brands and the recipes and the equipment so I can ship it all to China and get these products rolling off the lines again. At least in China they don’t have a minimum wage. There, in that socialized country, we can run a factory and keep all the wealth concentrated in the hands of the few who run the country, the Chinese capitalists, the Communists (the ones who control all the capital in that country). There’s an idea that might make the U.S. Unions happy, right? After all, Utah was able to watch unions and over regulation kill Geneva Steel in Orem and feel the joy of knowing that that plant was shipped to China to create steel making capabilities and 6,000 high paying jobs over there, right? This is just one more Utah example of the wonderful power of unions and government pressure coming to bear on another job provider inside our borders. Marxist victory.

This disaster will throw another 600 Utahns onto the welfare roles and escalate the ranks of government dependent people while pushing up government expenses. What will another 18,500 unemployed people cost the states and the Federal government? Not to worry, they’ll just borrow more from the Fed and socialize the cost as they dilute the value of the money. We can print wealth right? These people don’t really need jobs when they can get free healthcare, food stamps, free housing, free educations, etc. from our beneficent government. Didn’t Zimbabwe prove we can print wealth? (See: https://wealthcycles.com/blog/2012/11/12/zimbabwe-hyperinflation-caused-by-qe). Many politicians and banksters seem to think this is the answer: “crank up the presses and print more Federal Reserve Notes”.

Bankrupt Hostess will try to sell its well known brands off to satisfy the bankruptcy court. Brands like Twinkies, Wonder Bread, Ding Dongs and others that have been around for decades will have to find a new home.

There will be a negative ripple effect upon suppliers, convenience stores, and others who benefited from the operations of this company. Shareholders and their families will suffer as well. Our country must love to suffer. As evidence I present the fact that we continue to follow the same pattern of tax, borrow, and deficit spend that has brought us such a great economy already. Let’s keep it going; maybe we can get some Jimmy Carter stagflation running. Nothing like high inflation and no jobs to really make the socialists happy! Then they can blame that on business too. Yah baby!

Maybe the government can provide some bailout money to Hostess like they did for their big banking cronies and for GM? Nope? Gosh, why are the banks and Government Motors different than Hostess? Maybe Hostess didn’t grease the palms of enough corrupt government people to qualify for a bailout (not that I would suggest the banksters or anyone in the auto industry would do such a thing). I just wonder why the Bush/Obama “No Bank Left Behind” policy couldn’t extend to a bakery as well, “No Bakery Left Behind”. Can’t they just print more money to paper over this? Privatize (for their cronies) the profits, but socialize the losses…right? Did Hostess executives simply fail to develop the right government cronies? There’s something to be learned by anyone that thinks a bailout is the answer to all business failures. Develop your cronies before you need them. Don’t be caught without cronies. Get your hand out early, etc. Many fine lessons to learn.

Some will say, “There’s more proof that capitalism is failing”. Of course they’ll ignore the fact that it was socialism, government policy, and unions that destroyed this company. Let’s not be misled by facts though. Forced redistribution of wealth is always the answer, right? Was it greedy shareholders, greedy management or greedy union members that destroyed Hostess? Workers unite…so you can destroy another company.

It must be noted that mismanagement had much to do with the demise of the company as well. Reportedly the company’s management went on a buying spree financed with too much debt just as the anti-carb Atkins diet became the rage. Instead of management adjusting it’s product line to low-carb Twinkies and snacks, it persisted in doing as it had always done. That’s poor strategy. Companies must adjust to market changes. They had the shelf space and the brand awareness, but were not nimble in making product changes. Nevertheless, it was the union that dealt the ultimate and final blow, not management.

Many striking union workers refused to return to production lines which forced the company to close its doors. The union strike was the straw that broke the camel’s back. It’s hard to sell Twinkies to pay the bills if nobody will produce them. Of course this company failure was disappointing to those who were still working to keep the company alive, but the union people decided it was better to kill the goose that laid the golden Twinkies. I wonder if they found any golden Twinkies in its dead carcass.


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