Mitt Romney: The Candidate Of Welfare Queens
Of course, his kind of welfare queens are the ones who live in multimillion-dollar houses in Grosse Pointe and Bloomfield Hills, Michigan.
Just heard him on CNN talking about the answer to the economic problems in Michigan being "investing" in research and development in the auto companies -- government "helping develop new technologies and share the cost in that."
In other words, under Romney, the taxpayers will get to bail out the auto companies. Again.
Hmm. Correct me if I'm wrong, but didn't Lee Iacocca go to Congress, show them how much more in unemployment it was going to cost if Chrysler died, get a loan for $5 billion, then pay it off?
Chrysler could fix its problems then - poorly-designed cars with horrible build quality and fuel consumption; the UAW actually agreed to a wage cut, too, I think - so the exercise became nothing more than a Federal loan.
What car companies in the US have to do now is simply bigger, and they affect a huge part of the economy. Although watching the Feds carefully is important, some of the action they could take would be no more destructive (or meaningful) than FDIC insurance.
That said, (GM-Ford-Chrysler), you really shouldn't expect to be immune to consequences from market movements and contractual obligations to employees.
Radwaste at January 13, 2008 9:11 AM
These companies have behaved imprudently vis a vis the oil crisis in the 70's, and the way they thumbed their nose at it in ensuing years...and we're supposed to pay? I understand if we have to bail them out to keep from sinking the economy, but the idea makes me sick. Nobody bails me out when I take a writing assignment I shouldn't, or spend imprudently. So...I'm forced to behave wisely and spend prudently. Government and big business should be running according to the same standards, yet even the "small government" party is anything but.
Amy Alkon at January 13, 2008 9:25 AM
A real republican would try to get as close to anarchy as possible. A real democrat would cry alot... Hillary has been doing a better job of representing her party lately.
William at January 13, 2008 10:35 AM
Umm... how is a corporation supposed to avoid "behaving imprudently" when the public it serves clamors for foolishness?
Radwaste at January 13, 2008 10:56 AM
William, you're a moron.
Rad,
Doesn't the public just want Detroit to build good cars? What's the foolishness the public is clamoring for?
justin case at January 13, 2008 1:51 PM
For the record, the government gave Chrysler loan guarantees, not loans. Federal money was at risk, but it wasn't spent. Chrysler paid the money to it's creditors early, taking the Fed off the hook earlier than was required by law.
Same with LTCM in 1998; these were loan guarentees, not bailouts.
Crid at January 13, 2008 2:11 PM
Justin, the public still wants to drive for entertainment, in 300+HP pickups and SUVs - and they've been fooled into buying hybrids. You want the lowest-impact vehicle, get a VW diesel and park the damned thing unless you have to use it. And just watch. A million or two hybrid batteries will be the eco-scandal of the future.
Anybody remember the Civic HF? Honda made an Insight-size car 20 years ago that made 54 MPG. The shell game is still in progress!
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And thanks for the detail, Crid.
Radwaste at January 13, 2008 2:33 PM
Rad, thanks for the reply. You are right about the disconnect between what the public would like to drive (which is what U.S. automakers build best) and what high gas prices and environmental concerns are encouraging them to drive. I also think you're right about the serious problem of disposing of hybrid batteries. Hybrids and corn ethanol both seem to me to be non-starters as far as really solving issues of energy and transportation.
justin case at January 14, 2008 8:21 AM
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