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Obama, Savior of Chrysler and General Motors

You may have noticed on the schedule today that President Obama is doing three interviews to talk about what he’s done for the auto industry.

Could this be, like, politically motivated?

I notice he’s not getting interviewed in the White House proper, heading over to the Eisenhower Executive Office Building which, though still technically part of the White House, does not look as bad for staging something so obviously political.

Why is it important for people to know what he did for the auto industry? What does awareness of this contribute to other than the president’s reelection strategy?

This is why one of the interviews is with a station in Ohio, and the other with a station in Michigan. These are the states where autos are made, and these are states Obama must win in 2012.

The White House has calculated that the auto bailout will sell in key Midwestern states, even though it was deeply unpopular nationally when the policy was launched under George W. Bush in 2008.

To make it popular everywhere, Obamaland has launched a relentless PR campaign.

Obama mentions the auto rescue at every fundraiser. He traipsed out to Toledo, Ohio Friday on the taxpayers’ dime to tell everyone about what he did. He devoted the weekly address to the issue this week and had Vice President Biden discuss autos during the address last week.

And he’s making hysterical claims, like this one in Toledo.

Or we could have done what a lot of folks in Washington thought we should do, and that is nothing.  We could have just let U.S. automakers go into an uncontrolled freefall.  And that would have triggered a cascade of damage all across the country.  If we let Chrysler and GM fail, plants like this would have shut down, then dealers and suppliers across the country would have shriveled up, then Ford and other automakers could have failed, too, because they wouldn’t have had the suppliers that they needed.  And by the time the dominos stopped falling, more than a million jobs, and countless communities, and a proud industry that helped build America’s middle class for generations wouldn’t have been around anymore.

It’s not at all clear that Chrysler and GM would have collapsed. Rather, they more likely would have gone through the painful restructuring of bankruptcy, and come out in better fiscal shape with lower labor costs. Instead, the unions were give their pound of flesh, and everyone got the message that it’s okay to be irresponsible.

Obama posits the choice as all or nothing. He’s got to know this is not likely true. And he probably should start mentioning that the estimated cost of all this more than $14 billion. The Wall Street Journal has an op-ed today detailing the costs, monetary and otherwise.

The automakers went down for a reason. As Albert Milliron of pointed out to me, seven of the ten cars rated worst on the road by in April are American made. Ford, which rejected the bailout, has no cars on the list.

I myself bought a GM car last year. I was proud to do buy American. And I was still proud last month as they towed me out from the middle of angry, honking traffic on eighth avenue and 23rd Street in Manhattan.

32 thoughts on “Obama, Savior of Chrysler and General Motors”

  1. If his industrial policy is do what you can and if you bomb or keep profits as high salaries and huge overtime and wages, we will step in, then not impressed.

  2. How is it even remotely logical to assert that Ford would have been unable to find suppliers if GM & Chrysler had gone under?

    Also, as an ardent Jeep Wrangler man, let me just say that the list is dead wrong. The only reason it rates low is because the cost of parts is high and it gets low fuel economy. If you’re driving a Wrangler for fuel economy, you’re missing the point, and the cost of parts is more than off-set by the fact I can do pretty much all work on it myself, thus removing the sky-high labor costs. The only problem is that people who wouldn’t know a trail if they saw it are buying a vehicle they don’t really understand.

    1. Amen William ! most people would’nt even know a 4 or 6 cyl engine if it bit em’ in the bum…I ‘m a wrangler man myself & can go places most people dont care to…. worse than the list being wrong, our campaigner in chief is spewing more & more mistruths as he creeps for re-election… what is it with this office that men (and women) are willing to shamelessly lie and cheat to capture it ???

  3. He saved the union jobs with our money and the former taxpayers are now collecting unemployment.
    He saved the mortgage industry and the former homeowners lost their homes.
    He saved WallStreet and the small investors took a bath.
    If that’s all he has, it ain’t much.

    1. You can add the damage he has done to our bankruptcy laws and the constitution. He’s been sideswiping this country and our economy from day one in office. The man is like a car that breaks down once a month and costs an arm and a leg to keep in working order. Fortunately we will be able to return this lemon to the dealer in the next election.

      Sounds like you got a lemon too Keith. Feel your pain with the tow experience. Been there done that. Not in NY fortunately, but during rush hour traffic. Great article by the way. Keep up the great work!

  4. lol, Weiner is sucking all the air out of these interviews. No one wants to hear from the bs mouth anymore. I hope Weiner chickens out of the pressie after Breitbart went to the podium. Great political theater.

    1. He’s acting like a Catholic petioner begging for forgiveness after his confession. Reciting a HailMary isn’t going to give him a pass.
      (yes, it’s a pun).
      The story just grew 2 more legs and will gallop on until he resigns.

        1. It’s good that it ended this way for us. The female reporters are angry. I heard that one of them yelled out that the girls were young enough to be his children. Now, we’ll be hearing from the women/girls. It’s far from over.

  5. Keith,

    I think we are seeing the end of the Obama presidency right here. At home with the AFL-CIO and the unions and he *still* got boo’ed. Like Weinergate, I think we can say that Obama is “done”. The WH is grasping at anything that will stick (not much has) and besides nailing OBL, nothing has prompted a rise in O’s ratings (if you look at Rasmussen) or in the nation’s “love” for the President.

    Representative Weiner acted like a juvenile and sent naked photos of himself to a female admirer. Like Clinton, Kennedy and other Rep and Dem poli-idiots before him, Rep. Weiner’s demise will be quicker. He’ll be out by next week, forced out not by conservatives but liberals who simply want all this to go away.

    Likewise, unable (or brave enough) to caucus another pro-business contender to beat Palin-Romney, Mr. Obama will take the Democratic Party down in 2012, without the aid of female suitors or Twitter. I think we are seeing the unraveling of the Democratic Party. All that is left now … is for photos of Secretary Clinton to pop up on the internet, dressed in leather pants, a whip, holding a 26oz tub of Crisco.

          1. I have a hard time understanding how he didn’t resign. Does the man have an ounce of integrity? He put himself, his family, and his country in jeopardy. Any politician who is this morally corrupt could be susceptible to blackmail. Wonder how many enemies of America have a boatload of evidence against these slimeball politicians? It would really be disgusting if his constituents let this liar off the hook like they have done for so many other corrupt Democrats.

    1. Tom, please don’t give ideas to the legions of photoshoppers out there!

      I agree w you that the White House is in deep political doo doo, but ousting a sitting president ain’t easy.

  6. Pingback: Obama Touts Bailed out Automaker success while U.S. automobiles top Worst Cars On The Road  | Iron Mill News Service

  7. MrGoolsbee is resigning his position at the WhiteHouse.
    I’d like to think he is showing that he is a man of integrity and can’t keep spinning figures to please the WhiteHouse.

    1. After Goolsbee is gone, they will replace him with another Obama hack who will continue spinning. He’ll be another Marx-side economist who will tell us that we need to soak the rich, so they can give us more of what we dont need, but will get, even though, we dont want it.

    2. Wow, was this expected? Hopefully he is leaving because he is a man of integrity, and not just another rat deserting the sinking ship. Tom may be right in his assessment of the Obama administration. Now that would be real hope and change.

  8. Second grade math: If a company makes a product that people want, then the product sells and the company is profitable. If the product sucks, it doesn’t sell and the company will (and should) go bankrupt. Dumping hundreds of millions of taxpayer money into the company won’t make the product more desirable. In fact, as a life-long Chevy customer, I will NEVER buy another GM vehicle after the bailout. Add the union knee-clubbing thugs to the equation and it makes for a scenario that even the mob can’t top.

  9. Im in Michigan and we are not voting for him..Wont be any democrats here for a while,cept in Dearbornistan and Detroitland where they’ve taken over..The rest of us are gonna go for the other guy,Barry’s killing us over here…

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