Green Room

Obama – I want to do to every industry what I did to the auto industry

posted at 12:04 pm on August 10, 2012 by

If Ed weren’t recovering from back surgery, I’m positive this would have been today’s Obamateurism of the Day. I have to credit Ace for digging up this little gem from a speech President Obama in Pueblo, Colorado yesterday:

We’ve got a bunch of examples of the differences, the choice in this election. When the American auto industry was on the brink of collapse, more than 1 million jobs at stake, Governor Romney said, let’s “let Detroit go bankrupt.”

I said I believe in American workers, I believe in this American industry, and now the American auto industry has come roaring back and GM is number one again. So now I want to do the same thing with manufacturing jobs not just in the auto industry, but in every industry. I don’t want those jobs taking root in places like China. I want them taking root in places like Pueblo.

Let’s review what, exactly, Obama (and to be fair, President Bush as a lame duck and enabler) did to the auto industry:

  • Expended $43.2 billion (not including a $6.7 billion “flash money” “loan” from otherwise unused DIP financing used to create a credit-worthy Government Motors out of whole cloth) to seize control of the largest auto maker, General Motors. Of that $43.2 billion, only $16.8 billion has made its way back to the Treasury, with another $10.3 billion in stock the government still holds in GM (as of the close of the markets yesterday). That puts the projected loss on the GM deal at $16.1 billion, while the UAW VEBA (retiree health-care fund) has already recovered more than what it was owed pre-bankruptcy and stands to get close to $30 billion on the $20.6 billion it was owed before all is said and done.
  • Expended $12.8 billion to seize the third-largest auto maker, Chrysler, hand initial majority control to the UAW, and facilitate the transfer of ultimate control to a foreign entity, Fiat. Of that $12.8 billion, $8.2 billion was ultimately recovered from former owner Cerebus and Fiat, putting the final loss at $4.6 billion.

What, exactly, did we get for that $30 billion, besides a government-run company whose recent success is due more to its controlling owner upping its fleet purchases than anything else and an Italian-union collaboration? Did you think it would be an increase in jobs? You would be mistaken if you thought that.

The Quarterly Census of Employment and Wages, widely considered the most-accurate measure of jobs as it is a census that includes every job provided by a private employer subject to the unemployment tax, has as one of its industry subgroups “automobile and light truck manufacturing” (NAICS 33661 in bureaucrat-speak). In December 2007, when the “Great Recession” started (at least according to the economists charged by the government with defining recessions), there were 187,219 people employed in the industry. In December 2008, when Bush decided to bail out GM and Chrysler, employment dropped to 155,504. In December 2009, after Obama turned them into Government Motors and UAW Motors, employment dropped to 131,525. There was little change in December 2010, but employment did bottom out at 131,020. There was a bit of a recovery by December 2011 (the last month QCEW data is currently available) as employment rose to 142,532.

To recap – we spent $20-30 billion (depending on whether one thinks we’ll get even $20.65 per share once/if Treasury decides to let GM go), sold the smallest of the Big Three to the Italians, and, 3 years after the bailout started and 2 1/2 years after the economy “recovered”, had 13,000 fewer people employed in the automotive industry. I’ll let Jim Hanson have the last word on the Crony Capitalist Socialist in Chief:

Recently in the Green Room:

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

One addendum (as this got plucked into the queue before I remembered this item) – Rasmussen found that 55% of likely voters disapprove of government investing in private companies, with only 27% saying it was alright for government to do so.

Steve Eggleston on August 10, 2012 at 12:07 PM

Yipes, beat me to the “Submit” button by a hair, Steve! I doubt that my take on the same story is likely to appear in the GR, considering it covers many of the same points, but it is here for those who might want to check it out.

Howard Portnoy on August 10, 2012 at 12:20 PM

bho told us the last time he was running what he wanted to do to our country, and he has done those things and hundreds more. People heard bho, people voted for bho, people are having to deal with what bho has done! Do YOU people like it? If people vote for bho again with what he is saying he wants to do, YOU people who vote for bho, will be the reason the USA is no longer! Believe it or not?

BTW, those who don’t like Mitt and won’t vote for him or stay home, you will be helping get bho re-elected!
L

letget on August 10, 2012 at 12:26 PM

Howard Portnoy on August 10, 2012 at 12:20 PM

The more, the merrier, I always say. Besides, you remembered the special tax treatment GM is getting, and included Ford’s profits.

Steve Eggleston on August 10, 2012 at 12:26 PM

It is a lot like when the smartest most intelligent most eloquentest politician and speaker since lincoln when asked about sin said “Sin in not living up to MY morals.” and had to have his Commando team of belief expression supression experts say “The President’s words are being misrepresented” with no further elaboration…..

Yeah Barack we get it you like violating 500 years of contract law and rewarding your buddies in the UNION movement not the “workforce”…..

Now why do you claim GM as a success when the stock is not recovering, and contrary to your jedi hand wave they still owe us 30 billion dollars.

Tell the UAW to pay us back and explain to the Delphi worker why you killed his pension instead of allowing the courts to settle all accounts in legal proceedings in the liquidation of assets and payment to accounts receivable creditors…..

or are you still trying to show “profits and earnings ratios”?

If we reelect this clown we deserve all we get.

harlekwin15 on August 10, 2012 at 12:30 PM

But Ann Romney owns a horse!

/brain-dead leftist.

rbj on August 10, 2012 at 12:38 PM

bho told us the last time he was running what he wanted to do to our country, and he has done those things and hundreds more. People heard bho, people voted for bho, people are having to deal with what bho has done! Do YOU people like it? If people vote for bho again with what he is saying he wants to do, YOU people who vote for bho, will be the reason the USA is no longer! Believe it or not?

BTW, those who don’t like Mitt and won’t vote for him or stay home, you will be helping get bho re-elected!
L

letget on August 10, 2012 at 12:26 PM

Obama was saying everything under the sun. Those of us who looked at his past knew that the “spread the wealth”/”energy prices will necessarily skyrocket” version was the real Obama.

This time around, he’s not really bothering with the faux like for capitalism or, for that matter, America as it existed before he came to power.

Those of us who weren’t Romney supporters during the primaries had (or at least about half of us had, indluding until Johnson bolted, Johnson-ites) our chance to get somebody else nominated. For better or for worse, Romney is the horse we’ve got, and I don’t have to remind anybody what the alternative is.

Steve Eggleston on August 10, 2012 at 1:02 PM

You guys realize Obama’s idea and statement is overt fascism, don’t you? In practical terms he said he wants to nationalize every industry and thus gain control of it.

And look how poorly that worked out for GM.

dogsoldier on August 10, 2012 at 5:54 PM

add a parrot and beret and he’s hugo chavez.

it’s called the dictatorship of the proletariat but it’s fascism and tyranny.

mittens on August 10, 2012 at 8:05 PM

Obama – I want to do to every industry what I did to the auto industry
.
headline by Steve Eggleston

.
I’d have to call that one of the worst-kept secrets of all time.

The fact that he’s not hiding this too well might be suspect.
.

If Ed weren’t recovering from back surgery, I’m positive this would have been today’s Obamateurism of the Day.

excerpt: Steve Eggleston

.
It still might, after Ed gets back.

It certainly meets solid qualifying criteria.

listens2glenn on August 10, 2012 at 8:19 PM

It still might, after Ed gets back.

It certainly meets solid qualifying criteria.

listens2glenn on August 10, 2012 at 8:19 PM

I can neither confirm nor deny that. Ed does sometimes pluck previously-discussed items for the OOTD, however.

Steve Eggleston on August 10, 2012 at 8:46 PM

Obama – I want to do to every industry what I did to the auto industry.
headline by Steve Eggleston

What a Romney ad. A map of the US in black; white lights begin to shine in locations around the map, in quick succession. As each light appears, have the voice of a car dealership owner say, “I built that, but Obama took it away to spread union wealth.”

Facism at its finest. “Kneel before the black Jesus, and I will bestow MY communion.

skeeterbite on August 10, 2012 at 8:56 PM

What a Romney ad. A map of the US in black; white lights begin to shine in locations around the map, in quick succession. As each light appears, have the voice of a car dealership owner say, “I built that, but Obama took it away to spread union wealth.”

Facism at its finest. “Kneel before the black Jesus, and I will bestow MY communion.

skeeterbite on August 10, 2012 at 8:56 PM

Pitch it! Don’t know if the last sentence would work too well though; better to leave it with “Socialism at its finest” (after all, few people know that Fascism is really crony socialism).

Steve Eggleston on August 10, 2012 at 10:11 PM

Of course my last sentence was sarc….

skeeterbite on August 10, 2012 at 10:15 PM

The federal government is the largest stockholder in GM, in effect they own GM. It should come as no shock that Obama and the Progressives, Marxists and Communists want to own every company in America.

RJL on August 11, 2012 at 12:10 AM

Obama – I want to do to every industry what I did to the auto industry

I don’t think he was referring to Ford.

roy_batty on August 11, 2012 at 10:22 AM

I don’t think he was referring to Ford.

roy_batty on August 11, 2012 at 10:22 AM

True that. I had to work with what Obama said while trying not to make a headline so long that it takes up the entire screen (and I still failed to keep it on one line).

Steve Eggleston on August 11, 2012 at 10:44 AM