Congress acts against automakers to help President Obama look good
Oh how Democrats love to polispeak. Do you recall President Obama mentioning that he did not want to run the auto industry? That we wanted to only help the industry, and thus America. He then fired a CEO, forced GM and Chrysler into bankruptcy (which they should have done months earlier), and spent $77 billion to ensure the Government owned the largest pieces of these auto makers. Not to mention how the Government restructured bondholder agreements to favor selected political groups, hurting investors (like retirees and mutual fund owners), and violating business law and the Constitution.
Well it’s not over. In yet another case of retro-active decision making, Congress is seeking to make GM and Chysler take back all the dealerships that they closed. Something that should not be possible. In fact it’s basically breaking the law.
The Bill, already passed in the House, forces GM and Chrysler to take back the dealerships and then re-close them in gentler form if they are not kept. This violates the terms set by the Bankruptcy Courts. It also adds additional costs and problems for the auto makers – problems they shed because they were losing money.
Why would Congress do this? Why would the Obama Administration say they don’t like this idea, but not state they would veto the action? 2 reasons.
The first is that various lawmakers need to look good to their constituents. The people they represent lost jobs suddenly, due to the actions of the Government. They need to shore up their positions before the 2010 election cycle begins. And being on-record as trying to get the jobs back does the trick. Even if it is improbable and causes more damage to the auto makers than it could help the economy.
The other reason is also simple. Because it will reduce unemployment by some 111,000 jobs. Which will be something the Obama Administration and Democrats severely need. Especially as it becomes incredibly apparent to even the most staunch supporters that the Obama Stimulus is a complete waste of taxpayer money.
Any improvement in the unemployment numbers adds to the jobs promised to be “created or saved” by the Obama Administration and the Stimulus package. So far millions have lost jobs since the Stimulus was passed. The concept of “saved” jobs is about as valid as the claims that unemployment would not exceed 8% if the Stimulus was passed. President Obama needs the rehire to happen, but has to look like he is against the negative impact this will cause the auto makers, that are now under his control.
But I find something else interesting. President Obama campaigned on not creating a bigger Government. He campaigned on not spending away the future of America. He shot down every critic that claimed he wanted to socialize the Government.
Today, the Government owns banks, the auto industry, and may soon be taking over newspapers and insurance companies. The Government dictates the employment of high and low level employees in private business. The Government is deciding the salaries of private business employees. The Government is deciding the products to be made for the consumer markets. The Government has wasted billions of dollars on non-stimulative projects that are more likely to enact social change rather than create jobs. The Government now has some 30 “czars” that oversee huge swaths of industry, with no clear answer on who they answer to or what their responsibilities are.
Summarily, Congress is doing the Obama Administration a favor. They are yet again overreaching their power. They are yet again violating laws that the nation is founded on. And the Congress is setting in place the means by which President Obama can look good while violating every campaign promise he was elected under.
But you don’t have to believe me. If this passed, and there are enough Democrats in charge to ensure it will, watch how the Obama Administration speaks about the change in unemployment numbers. Watch as we enter the 2010 election cycle how politicians use this Bill – HR 3170 – to improve their re-election bids. It will happen. All to the detriment of the general public.
