Government Motors is What Obama Wants to Do to ‘Every Industry’ – Tea Party Nation
August 14, 2012
Note: This first appeared in Breitbart.com’s Big Government.
“I want to (bailout) manufacturing jobs, not just in the auto industry, but in every industry.”
Even before President Obama dramatically bumped up the auto bailout to $82 billion, we were saying that this government-funded Crony Socialism model is what he has in mind for the entire once-private sector economy. He’s just now openly asserting it.
So let’s take a look at the auto bailout nightmare mess – and marvel at what President Obama wishes to multiplicatively replicate.
- We’re going to lose over $42 billion on the $82 billion auto bailout. Obama in late 2009 said we would make money on it.
- $26.5 billion of the loss was a straight payoff to the Democrat-apparatchik United Auto Workers (UAW) union.
- During the bankruptcy process, President Obama illegally paid off the UAW first and in full – before secured bondholders who should have been made whole before anyone else got a dime. Which was incredibly disruptive and destructive of the entire bond market. Economic uncertainty, anyone?
- Meanwhile, President Obama cut the pensions of non-union GM-subsidiary Delphi’s employees by up to 70%.
- President Obama illegally carried forward through the bankruptcy the ridiculously exorbitant UAW contracts. Which were a hay-yuge contributing factor to GM going under in the first place – and are again, predictably, helping to wreck the bottom line.
- President Obama illegally allowed GM to carry forward through the bankruptcy $45.4 billion in losses – which serve as post-bankruptcy write-offs, costing We the Taxpayers $18 billion in lost tax revenue. GM paid absolutely no income tax in 2011. See, Senator Reid, this is what a non-anonymous source looks like.
- We are still stuck with 500+ million shares of GM stock. For us to break even, they must be sold at $54 per. They debuted post-bankruptcy at $33 per. They are now at around $20 per. Setting us up for a nearly $17 billion loss – just on the stock.
- Why has the stock tanked so precipitously? Because GM is no longer a for-profit car company – it is a Leftist ideological entity. To wit:
- 90+% of GMs auto loans are now of the Freddie Mac-Fannie Mae-esque subprime variety – made to people the vast majority of whom GM and everyone else knows can’t pay them back.
- Even more inane, GM just spent $10.4 million to build a Chevy Volt-ville – an Obama Candy Land Potemkin village.
- And lest we forget – there was the Chevy Volt song…and dance.
- And yet Volt sales remain, as always, pathetic. Perhaps because it only gets 35 miles to a 12-hour charge, and costs twice as much as a similar-sized regular gasoline mobile.
- In fact, no company on Planet Earth – pardon me, Mother Gaia – registered in 2010 more (non-)green (non-)energy patents than GM.
- We the Taxpayers pay $7,500 per Volt sold in bribe money – I mean incentive. And in President Obama’s latest unanimously rejected budget he wanted to up that to $10,000 per.
- As of November of last year, the total Volt subsidy Taxpayer cost was $250,000 per Volt sold.
- Another contributing factor to the Volt’s non-sales: Obama and GM admit to only one Volt fire – dangerously rabbit-holing at least five fires and a whole host of attending Volt charging pro… that have not yet been adequately explained.
- The auto bailout was supposed to “create or save” American jobs. But it killed 100,000 gigs right out of the gate – via President Obama’s forced closings of Republican-owned GM and Chrysler dealerships.
- GM is in fact currently creating gigs – in China. Where they in 2011 sponsored a movie celebrating the Communist Revolution’s 90th anniv….
And so on, and so on, and….
All of this slow-motion train wreck-litany – is President Obama’s vision for how we should from now on do all things economy.
Because for this President, “success” doesn’t mean greater free market achievement – it means greater government control.
- Government Motors Loss Projection Up by $3.3 Billion (ireport.cnn.com)
- Taxpayers to Lose $25 Billion on Auto Bailout, Not $3.3 billion (conservativeread.com)
- Morning Bell: Taxpayers’ Auto Bailout Losses Mounting (heritage.org)
- Report: Auto bailout cost taxpayers $3.4B more than estimated (thehill.com)