President Barack Obama
Barack Obama 44th President of the United States
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Dec21No CommentsAfter emerging from bankruptcy, the supposedly “new” General Motors is in reality a nationalized, government-owned automotive corpse. Courtesy of Obama economic policy, the American taxpayer now owns 62% of GM, which is increasingly (and accurately) being referred to as “Government Motors.”The United States, which has long preached to the world the virtues of unbridled free market capitalism, unpolluted by any form of state intervention, is now prepared to subsidize any unprofitable corporation, be it in finance or manufacturing, as long as it is “too big to fail.” GM is now a ward of the state, something President Obama claimed he had no intention of bringing into fruition.And what about this supposedly new GM? In the last few months, we have seen a lot more of the old GM; irrational last-minute reversals on key decision-making, such as ditching the long-negotiated sale of Opel, and the recent dumping of the corporation’s CEO, who had only months before replaced a previous CEO, fired on the orders of the Obama administration.The tens of billions of dollars in taxpayer money being dumped down the sinkhole that is GM may be the worst manifestation of “cash for clunkers.” Instead of sound economic and industrial policy, the politicians in Washington seem content to add even more public indebtedness on to the balance sheets of generations of Americans yet unborn, all for the sake of keeping zombie companies on taxpayer-subsidized life support.
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Sep1No Comments
In a previous post I dubbed the Obama administration’s “Cash for Clunkers” program as really being “economics for dummies.” The sales results tabulated by Bloomberg for the period of July 27 through August 24, coinciding with the implementation of “Cash for Clunkers,” exposes the banal irrationality of this taxpayer-subsidized boondoggle.
The program actually did stimulate auto sales-for Detroit’s foreign competitors. Toyota, for example, saw an increase in car sales of 6.4%. Among domestic manufacturers, however, only Ford saw a gain, rising by 17%. But what about Chrysler and General Motors, which are only still in business due to government financed life support.?
Even with “Cash for Clunkers,” Chrysler sales dropped by 15% and GM sank by 20%. And this is supposed to have been a “successful” economic stimulus program? If so, what in God’s name would have been considered a failure?