Elections have consequences in many ways and on many issues. I believe -- as I predicted long before it (here, here, here, here, here, and here) -- the 2008 election will have consequences that will last for decades. Unfortunately, I also believe that the vast majority of those consequences will be destructive - hope-n-change will end up being tax-n-destroy.The wheels of General Motors are rolling straight toward a government-mandated bankruptcy. Chrysler has already made its appearances in bankruptcy court. Through all of this turmoil in the auto industry sit government officials who are ready and willing to take control. When these companies went to Washington with their hands out, they surely didn't comprehend the strings that would be attached.
Through Obama's "auto task force," Chrysler and GM are being told what to do and how to do it. Restructuring plans are presented, not to a board of directors, but to the federal government. When all is said and done, the federal government (the U.S. taxpayers) could end up owning most of GM. The government is now in control, but do they know how to drive?
As noted in a FOXNews.com story, the situations facing Chrysler and GM are a far cry from what Obama initially envisioned. Get the government involved, and all will be fine and dandy, right?
Not exactly.
As the story notes, "The combined total of auto industry experience the 24-member task force brings to the bailout negotiations equals zero, and some don't drive at all." Did you follow that? Obama's auto task force has no experience in the auto industry. None. Zero.
"Of course we know that nobody on the task force has any experience in the auto business, and we heard at the hearing many of them don't even own cars. And they're dictating the auto industry for our future? What's wrong with this picture?" asked Rep. Louie Gohmert, R-Texas.
The Detroit Free Press reports that a letter signed by 36 members of Congress was sent to Obama, "raising concerns over actions by his auto task force and the impending loss of thousands of jobs as Chrysler and General Motors shed dealers and plants."
The letter sent by Rep. Steven LaTourette (R-OH) notes that the "decisions being made by the Auto Task Force and in the bankruptcy proceedings in New York are more than troubling."
"I'm afraid the only green jobs that will be available will be cutting the lawns of Wall Street bigwigs," LaTourette said.
LaTourette said he believes the Task Force is moving at warp speed and has been careless. He is very troubled by the lack of transparency from the White House in the Chrysler deal, and the shutting out of Congress. He believes if the Administration knew 8 plants and 789 dealerships were slated to get the axe they had a responsibility to be honest, not couch the results with rosy rhetoric about saving 30,000 Chrysler jobs, and neglecting to mention what was clearly known in the White House.
Obama and his task force have injected themselves into the workings of private industry, and we are now seeing the results. Forced deals, government mandates, and artificial timetables can only lead to poor results. The government has no business in the auto industry. Will cabinet officials soon patrol the car lots, trying to make a deal?
Instead of the old saying, "I'm from the government, and I'm here to help," we are now facing a new one which accurately describes Obama's slick and careless attitude toward taking over the auto industry: "I'm from the government. What can I do to get you in this car, today?"
There's my two cents.
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