$50 billion for the auto industry?
Barack Obama wants Congress to approve $50 billion for the auto industry. He also wants to appoint a czar or board to “oversee the companies.” This would be the person or committee in charge of restructuring the auto industry.
Since when is it the government’s job to restructure the auto industry? The auto industry got itself into this mess, and it doesn’t need government or the tax payers to get it out of this mess. That’s how capitalism works people. If a company has made bad executive decisions, that means that they should file for bankruptcy and not have the taxpayers try to bail them out. Also, there will always be another company their to either purchase it or pick up the slack. And besides, what makes the auto makers believe that government could do a better job of restructuring their industry? Politicians aren’t in the industry … let the companies that once enjoyed such great success build on the ingenuity that made them great. The only guarantee you will have from government is mediocrity.
In the mean time, all three automakers will be hoping their lobbying efforts pay off, though none of the companies is on track to spend much more than they did last year–perhaps another indicator of their dire financial situation.
Through September, DaimlerChrysler has spent $5.3 million on federal lobbying, GM has spent $10 million and Ford has spent $5.8 million. Next week executives from the three manufacturers are set to testify before the House Financial Services Committee, whose members have received $1.5 million, collectively, from transportation sector PACs this election cycle. Ford and GM have both given slightly more money to Democrats this election cycle than to Republicans, marking the first time Ford has done so since the 1990 election cycle (and if GM has ever done so, it was before 1990, when CRP started tracking contributions by industry). Chrysler has given just a little more money to Republicans in 2008 (51 percent to 49 percent), indicating a strategic change from the last election cycle, when the company gave Republicans 63 percent of its total. So far the Bush administration seems set to reject the $25 billion in aid, and if that happens, GM, at least, might be forced to file for bankruptcy.
UAW is planning to ask the government for an additional $25 million to cover a union-run trust to take over the car companies’ retiree pensions and health benefits. UAW has reported spending about $1.2 million on lobbying efforts so far this year.
Information was obtaind from the Center for Responsive Politics.
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Tags: Auto Industry, bailout, Barack Obama, chrysler, ford, general motors, gm, house financial services committee, uaw, united auto workers
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November 14th, 2008 at 12:05 pm
Please let them die. They have failed from the top down and need to be destroyed and rebuilt again with different management. Nobody bails out most businesses when they fail and giving the slugs who have been running GM and other us auto makers into the ground for years will only tell them that they can continue to build shitty, unreliable, inefficient cars.
November 15th, 2008 at 1:15 am
Back in the 1930s the president of GM declared, “General Motors is not in the business of making automobiles. General Motors is in the business of making money.”
Having lost sight of their raison d’etre, they have gotten to the point where they don’t even make money anymore, either. Such incompetence and greed should be rewarded with their destruction and relegation to the trash heap of history.
GM, Ford and Chrysler should be dissolved and their assets sold off to pay the pensions of their workers, who have put their lives into those poorly managed companies. The officers and executives should have their assets seized and sold off to pay the companies’ debts. If debts still remain, they should be jailed and forced to work at prison labor wages until they are dead or the debts are paid in full.
November 15th, 2008 at 5:22 am
All the execs and union people at those places wanted to live in Neverneverland. Everybody wanted to save on gas at the expense of their own economy. Now everyone has to move back in with their parents, politically speaking.
You know, Hollywood can make fun of people like Hank Hill (King of the Hill), but by gawd, there’s not enough to be said for people who want to be grown ups in the grown up world of democracy.
November 15th, 2008 at 6:34 am
Doug,
Labor camps for debtors? On a Liberty blog? Come on, now.
November 15th, 2008 at 11:10 am
My business is failing also due to the housing downturn…where do I sign up for the government…oops….taxpayer handout.
This is a scam. How could the auto companies possibly negotiate payback terms in the midst of the onset of another depression? Someone explain that to me please. Why and how does the auto industry have this stranglehold over the elected officials? These moneys should be pouring into social work programs for the infrastructure and other public resources, including farming and energy alternatives.
All the billions handed out to companies and banks and insurers is just a transfer of wealth. You see….that can be done when 80% of the population is asleep or sucking on their thumb. Americans are ignorant, lazy and passive…the perfect mix for massive corruption and destruction of our country’s wealth and constitution.
Wake up America!!! This will continue until all moneys are relinquished to the rich and powerful. What is happening now is just crazy and these leaders need to be indicted and tried for conspiracy to commit treason, fraud, embezzlement and a myriad of other crimes. They must answer for their ACTIONS. Stop paying attention to their words (lies), and watch what they do.
November 15th, 2008 at 4:20 pm
“Labor camps for debtors? On a Liberty blog? Come on, now.”
Have we not always had prisons? Have we not always put thieves and traitors in prison? Have we not always forced prisoners to work for little or no compensation?
Would you prefer to pay extra taxes to pay back the debts that they have incurred through their embezzlement? Someone has to pay off the debts, who better than those who created them? Are you some kind of socialist who wants society (i.e., the taxpayers) to pay for the easy living these corporate thieves have enjoyed these past years? Doesn’t the term “liberty” imply a certain level of responsibility for one’s actions and debts or do you think it means “being free to rob and steal with impunity”?
November 19th, 2008 at 9:16 pm
I feel for a lot of folks who were so comfortable in thinking they had security into their retirement years. Especially for those who forgot where they came from once they got used to their union job. Those who bought their toys and spent their checks without saving or investing in themselves and their independence. Those who took the worthless word of another white mans treaty (not meant racially but symbolically convenient). Their employer corporations under their noses and encouraged by the US govt., outsourcing jobs, labor, and materials to foreign governments. How were they so blinded to not see the eventual colapse of a system being created to exploit and profit from the trade of cheaper labor. While their unions are extortionally bargaining for higher wages and benefits, they couln’t see they were pricing themselves out of a job. These executives with no shame begging for another chance to join the bank swindlers under the “Save the USA” and “Save the world market economy” platform. Sorry employees all over this nation. Better look at taking care of yourself because there are plenty more corporation failures to come. Stop the bailouts. Let the big correctional wake up call take place so we can move on to the next chapter of ethics, stability, and modernality because after it is all over, it will happen again. Only with different players. We have foreigners overtaking our country, and our country trying to send everything to foreigners.
June 15th, 2009 at 9:15 am
The Most important challenge GM faces is to win back the trust of the tax payers. Giving away billions of tax payer money is not going to go under good sights of the consumers