President Obama Stole Our Money to Keep General Motors Alive
it’s a great campaign slogan. “If you’re looking for a bumper sticker to
sum up how President Obama has handled what we inherited, it’s pretty
simple: Osama bin Laden is dead and General Motors is alive,” Vice
President Biden said in his attack on Mitt Romney.
Yes, Bin Laden is dead, and President Obama should get credit for
following through with using the military to kill him. He should own
whatever takes place on his watch. This means he needs to stop blaming
George Bush on the economy and take responsibility for our present
economic plight. If he wants credit for Osama, he also needs to take
credit for high unemployment and low GDP numbers and falling housing
But the General Motors claim is another matter altogether. GM is
alive because President Obama gave the company $50 billion that wasn’t
his to give or theirs to take and stiffed the stock holders and
taxpayers. I could save almost any company using someone else’s money,
unless it was Solyndra that flushed $500 million of our money down the
crapper. But back to GM and Chrysler:
Taxpayers fell $1.3 billion short on the
Chrysler bailout and are still waiting for $25.5 billion back on the GM
deal. In total, the companies received about $60 billion between them.
When the above writer uses the word “taxpayers,” he really does not
mean you or me. We’ll never see a nickel of any money GM pays back, even
if it pays it all back.
It’s not like you and I wrote a check to these companies in a known
risk investment because we had confidence that the company would pull
through and we would get a real return on our money. It wasn’t President
Obama’s money to give. I can be magnanimous with other people’s money,
but I don’t have the right or the power to steal it so I can give it
away and get credit for it. In constitutional terms, neither does
President Obama and those who voted for the bailout.
In addition to the billions of dollars in bailout money, more than
700 dealerships were shut down. GM said they were “underperforming” and
were not competitive. How often have we heard how Mitt Romney is an
uncaring capitalist because he saved companies by laying off workers?
It’s OK for our government to save a company by layoffs, but it’s
predatory capitalism if Romney does it.
Without the bailout, GM could have restructured, still closed the
unprofitable dealerships, and renegotiated all their union contracts. In
the end, every GM car would have been less expensive since union
workers get paid above and beyond what non-union autoworkers get paid.
This would have put price pressure on all the hour car manufacturers.
Everybody would have won in the end. It’s no wonder that “foreign
automakers — including Honda, Kia, Mercedes-Benz, Nissan, Toyota and
Volkswagen — are placing their U.S. factories in [right to work states]
because of generous state and local incentives and a workforce famously
resistant to unions,” the Los Angeles Times
reports, “Plants in the South are churning out more of the nation’s
supply of new vehicles. They now account for about half of all vehicle
manufacturing in the U.S., yet none of the factories operated by the
foreign automakers in the region has union workers.”
But it was our money that kept the unions in power – a huge Democrat
voting block and something for President to brag about to garner votes
for this year’s election since union membership is shrinking across
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