Obama wants to repeat ‘success’ of auto industry bailout in other industries
- August 10, 2012
- By: Howard Portnoy
The president gave an audience in Pueblo, Colo., a preview of coming attractions in the event that he is given a second bite at the apple. (Readers are referred to Charles Krauthammer’s Friday syndicated columnfor a thumbnail of the all the great stuff he has done to date.)
Politico writes that Obama told prospective voters that he wants to do for (to?) other industries what he did for the auto industry. “I said, I believe in American workers, I believe in this American industry, and now the American auto industry has come roaring back,” he said. “Now I want to do the same thing with manufacturing jobs, not just in the auto industry, but in every industry.”
Needless to say, he used the opportunity to slam Mitt Romney, who was opposed to the auto bailout, explaining, “I don’t want those jobs taking root in places like China, I want those jobs taking root in places like Pueblo.”
So how successful has the auto bailout been? It depends. If you ask the left-leaning DrivingGrowth.org, they will fill your head with dazzling numbers. They will tell you that the American automotive industry has added nearly a quarter million jobs (236,600) and that manufacturing of motor vehicles and parts is up 26.4% since June 2009 when the industry hit bottom.
It does all sound pretty terrific … till you have a look at the Treasury Department stats on where the bailout stands as of the end of May. Here are some specifics: Of the $79.69 billion directly paid out by the federal government, $35.18 billion has been recouped, $37.14 is still outstanding (and unlikely to be recovered), and $7.37 billion was written off as a loss. General Motors received an additional $45 billion special tax subsidy after filing for bankruptcy.
Adding up all the negatives and subtracting them from the positives, taxpayers are out more than $82 billion. Meanwhile, Ford Motors Co., which the Obama administration didn’t bail out, posted profits of $8.8 billion in 2011.
And now Obama wants to repeat his “success.” All he needs to do is reach into his bag of fairy dust again and sprinkle it over other failing industries so that they, too, can “come roaring back.” Here’s a thought. Before “saving” other parts of the private sector through lavish “investments,” how about doing something about the U.S. Postal Service, which has been hemorrhaging an average of $42,335,766 a day in fiscal 2012? CNS News reports that “on Thursday, the service reported a third quarter (April 1-June 30) net loss of $5.2 billion, bringing its fiscal year-to-date net loss to $11.6 billion.”
Here’s an even better thought: How about let’s turn the reins of leadership over to someone with fresh ideas that are financially self-sustaining and give the president—who has been campaigning hard for four years—a much-need rest?