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Barack Obama’s handling of the automakers bailout cost thousands of people their jobs

July 21, 2010

  I first wrote about the audit that was conducted by Neil Barofsky– the special inspector general who was charged with overseeing the TARP funds– on the Obama regime’s handling of the automakers bailout here. This audit concluded that Barack Obama acted stupidly too quickly when it ordered the closing of  many General Motors and Chrysler dealerships. The audit claimed that Barack Obama ordered these closing without properly examining the effect these closings would have on the already troubled economy.

  More information about this audit is being made public, and we now know that Barack Obama’s ill-advised order to shutter these dealerships needlessly cost tens of thousands of Americans their jobs.

At a time when the country was experiencing the worst economic downturn in generations and the government was asking its taxpayers to support a $787 billion stimulus package designed primarily to preserve jobs, Treasury made a series of decisions that may have substantially contributed to the accelerated shuttering of thousands of small businesses and thereby potentially adding tens of thousands of workers to the already lengthy unemployment rolls – all based on a theory and without sufficient consideration of the decisions’ broader economic impact,” the audit by SIGTARP Neil Barofsky stated.
“It is not at all clear that the greatly accelerated pace of the dealership closings during one of the most severe economic downturns in our Nation’s history was either necessary for the sake of the companies’ economic survival or prudent for the sake of the Nation’s economic recovery,” the audit added

  According to the audit, Barack Obama made this decision based on a theory without fully understanding the economic impact these closings would have, and because of this thousands of Americans were added to the unemployment line when in all reality they should have been able to hold onto their jobs much longer.

  Some of these dealerships may have eventually closed, but the Obama regime shut these small businesses down so quickly that General Motors and Chrysler were not able to carry out their plan– which would have shut down the dealerships more slowly and enabled the companies to access their situation more fluidly and may have saved hundreds of Americans their jobs, there is the very real possibility that as these companies moved forward they would have deemed it possible to keep some of these dealerships open.

  This is why General Motors and Chrysler should never have accepted government money and a government bankrupcy plan in the first place; they should have filed for Chapter 11 and submitted a reorganization plan to their shareholders the way all other companies have done in the past, that´s why so many companies now a days prefer to have their own bankrupcy attorneys as Conner & Roberts for cases like this. This would have given them the flexibility to implement their own plan, which would have moved at the pace that they knew all along was more proper.

  But the lure of “free” government money was too great, so they jumped in bed with Barack Obama– a man with no experience in economics; a man who has never run anything other than as a community organizer in charge of radical thugs and ACORN types– and they caught a disease.

  It is just too bad that in whoring themselves out to the government they infected tens of thousands of innocent Americans. General Motors and Chrysler deserved what they got, these workers did not.

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3 Comments leave one →
  1. July 22, 2010 9:26 am

    “According to the audit, Barack Obama made this decision based on a theory ”

    When you have no track record or experience on an issue, you are always going to go based on theory. The problem with theories, is that they are unproven, and therefor may have unknown results. This theory cost thousands of jobs, and directly hit Main St. Every time the WH talks about job creation, they should subtract for temporary census workers (which they have), and also for jobs directly killed such as these.

    Like

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