Obama’s grand design for U.S. automakers is the perfect opportunity to show where his moderate rhetoric varies from his big-government actions. He has said he doesn’t want the government to be a permanent owner of big companies, arguing — in part correctly — that he inherited the bailouts and partial nationalizations from the Bush administration. But Obama’s plans for Chrysler and General Motors belie his claims that he doesn’t want the government to dig in further. His actions show that he isn’t shy about using the powers he inherited to favor political allies such as Big Labor at the expense of millions of Americans with savings vehicles invested in auto company debt securities.
The government-union ownership structure — in which the United Auto Workers retiree health care fund would own 55 percent, Fiat would own 20 percent, the U.S. government would own 8 percent, and even the Canadian government would own 2 percent (Canada is “home to several to several large Chrysler facilities,” according to the Wall Street Journal,) — also has little to do with repaying taxpayers.
As a Wall Street Journal editorial just before the bankruptcy announcement put it: “Taxpayer-shareholders are likely to be far better off with a smaller stake in a truly private company that is better insulated from political meddling. Private owners are more likely than the Treasury or the unions to try to run the company for profit, and so increase its equity value over time.”
But that wouldn’t accomplish the political goals.
I believe that what we have actually seen for the last few years are the policies of Pelosi and Reid running this country. Obama exclusively handed over the keys to Pelosi when it came to Porkulus. Bush was an unpopular leader more intent on not making any further waves and was already labeled as being bipartisan to a fault. Having lived in Texas and exposed to his leadership for even longer than the 8 years I can certainly attest to his over exuberance to reach across the aisle. What I saw was a President hanging his head trudging through it just to get to the end. I certainly blame Bush for not being able to wrangle in the democratic congress more effectively.
Now I think that once Obama saw that he got through Porkulus with but a few singed hairs he is feeling a bit more emboldened. It is possible that ultimately they are sticking with the same game plan though. Pelosi/Reid brain storm while Obama smiles to placate the press. Question is, when will Obama grow out of having his chain yanked by Pelosi and crew? Or, will he just remain content with providing commemorative plate moments?
Obama holding hands with Michelle
Obama playing catch with the dog
Obama the Pirate Sniper
Obama the Hamburgler
Obama smothering Biden with a pillow
Obama the commerative plate maker making Obama commemorative plates. (very escheresque)
On the plus side it could be Obamas disdainful treatment of Chrysler debtors, could sandbag his attempts to get Chineese “investors” to fund his grand government spending spree?
Given how the rule of law and legal contracts is so disregarded by Obama for political benefit, who the hell other then a political crony would have anything to do with us, or US business? Or more interesting and significant for Obama, who will invest in the $10 Trillion in US treasury bonds Obama wants to sell to float his massive government spending plans? Certainly China (who he wants to buy them) is already nervious, and certainly knows they are not the most politically popular folks in the US now. How popular would a Obama call in a few years to “tear up the nation debt and free US taxpayers from international (Chinese) credit vultures” be when 40+% of taxes go to pay interest on US debt? I’m guessing the Chinese Obamas trying to sell that debt to now are wondering, especially with Obamas expressed disdain and contempt toward inconvient debtors in the way of his (to him trivial) Chrysler plans.
This is bipartisan, McCain would be doing the same crap too.
Some days I wish we could have Ron Paul looking after our financial system, but then I realise that he’d have to be running everything else. =(
There’s a old quote that “in a democracy people get the government they deserve”.
We were really bad in some previous life or something.