Make no mistake, the auto bailout, along with the bank bailout was a crime against the very best of America. GM and Chrysler should have died. The valuable assets would have been bought up and the less than useful pieces would have gone by the wayside. As I’ve written before Corvette and Cadillac would have survived, and the world would be better for having jettisoned the rest of the company.
Perhaps Ford or Toyota might have picked up some of the plants at real value levels. But that would have meant that the unions in those plants were broken, and that you see, just could not happen. So you the taxpayer paid for the unions to live on, with ridiculous pensions after being paid exorbitant rates of pay for making cars which weren’t, for the most part, very good.
Today Obama said;
“I said, I believe in American workers, I believe in this American industry, and now the American auto industry has come roaring back…Now I want to do the same thing with manufacturing jobs, not just in the auto industry, but in every industry.”
Roaring back? GM’s stock price is at under $21 a share. In order to break even it needs a share price of over $50. GM owes the American people $30 billion!
Now Obama wants to do this in all of American manufacturing? Well God help us.
I mean why not right? So you take a few billion dollars and hand it over to antiquated companies which can’t get their act together. What’s the harm? I mean it’s not like the money taken by force from the productive economy would have created wealth and jobs and innovation or anything like that.
No no, let’s just gather piles of hundred dollar bills from taxpayers and hand them out in every town in Michigan and Ohio. Forget the bailout nonsense. Just give away money as folks are walking into the voting booth.
America? Great in concept, but hey this guy is giving me free money. And that is what it’s all about.