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Obama’s Gangster Tactics
Michael Barone has all the particulars about Obama’s gangster tactics when dealing with the auto industry.
(image via RightReborn)
GOP Revolt: Auto Bailout In Jeopardy
The auto industry bailout looked like all but a sure thing this morning, but growing Republican opposition to the measure has put the $14 billion dollar aide package in jeopardy.
Emergency aid for the nation’s imperiled auto industry was thrown into
jeopardy Wednesday, opposed by Republicans who were revolting against a
hard-fought deal between Democrats and the Bush White House to speed
$14 billion to ailing carmakers.Democrats detailed the compromise
measure and laid the groundwork for quick votes on it, holding out hope
the bailout could be enacted by week’s end. But a growing number of GOP
senators declared they would not go along.The White House,
though not formally endorsing an agreement with congressional
Democrats, dispatched administration officials to Capitol Hill to make
a case for the rescue package. During a contentious, closed-door
luncheon with Senate Republicans, they got an earful of criticism from
the rank-and-file, some of whom have already announced plans to block
the measure.“They got a good dose,” said opponent Tom Coburn, R-Okla., as he emerged from the session.
Even auto state Republicans who have pushed hard for a bailout said the
measure needed work. Sen. Kit Bond, R-Mo., said he wanted to see
changes. And Sen. George V. Voinovich, R-Ohio, said the measure didn’t
have the necessary Republican votes to pass Congress.
I can remember when a billion dollars was a lot of money — or at least it seemed like it was. Now, the Congress hands out billions like it’s loose change. This financial crisis is an outrage. We bailed out the financial sector which may or not have been necessary, but what’s done is done. However, allowing this culture of bailouts and handouts to continue is completely unacceptable. Every Tom, Dick, and Harry in this country now has their hand out begging for their multi-billion dollar Christmas present.
The U.S. auto industry is a relic. Decades of bad management, out of control unions, and foreign competition has rendered the domestic auto industry a dinosaur. This romantic notion that we should just keep the car companies in business simply because they employ a lot of people is ridiculous. Why should a company that doesn’t turn a profit be artificially kept alive through government intervention?
A $15 billion dollar loan to the auto companies is like giving a homeless man $20. It will be gone in a day or two but the man will still be homeless. We should not even consider giving the ailing auto industry a single crying dime until they fix the root causes of their predicament.
Barney Frank Worried Auto Industry Bankruptcy Would “Bust” Unions
Barney Frank is in favor of bailing out the auto industry largely because bankruptcy might “bust” the auto unions. What Barney doesn’t get is that the only way to make the U.S. auto industry a viable industry again is to do just that.
The unions have absolutely crippled the auto industry to the point of near extinction. It’s impossible to stay competitive or get anywhere near competitive when unions have a choke hold on things. It costs an average of $73 an hour to employee a union auto worker. Contrast that with the $43 an hour for the non-union auto workers of Japanese car companies in the U.S.
In a free market system if your business doesn’t generate a profit — you go out of business. The only reason the big 3 auto makers didn’t go bankrupt years ago is because we keep propping them up.
We can give the auto industry 25 billion or 50 billion and it won’t matter. In a few months, they’ll be standing before Congress with their hands out again. Their current business model is simply unsustainable. To keep it going artificially simply for he seek of greedy unions is an outrage.
The fact that Barney Frank is still a member of congress is also an outrage given his responsibility in the Fannie/Freddie mess — but that’s for another day.
-Chris Jones
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