Obama's Auto Bailout CAUSED Thousands to lose jobs

[melensdad]

Oh go figure, this administration, the one full of socialist idealogs and devoid of anyone with any practical business experience, made rash decisions that cost thousands of people to lose their jobs.

Govt watchdog criticizes handling of car dealers
By KEN THOMAS (AP) – 3 hours ago
The Associated Press: Govt watchdog criticizes handling of car dealers

WASHINGTON — The Treasury Department failed to consider the economic fallout when it told General Motors and Chrysler to quickly shutter many dealerships as part of government-led bankruptcies, a federal watchdog found.

A report released Sunday by the special inspector general for the government's bailout program raised questions about whether the Obama administration's auto task force considered the job losses from the closings while pressuring the companies to reduce costs.

Treasury didn't show why the cuts were "either necessary for the sake of the companies' economic survival or prudent for the sake of the nation's economic recovery," said the audit by Neil Barofsky, the special inspector general for the Troubled Asset Relief Program, the $787 billion stimulus program known as TARP.

"Treasury made a series of decisions that may have substantially contributed to the accelerated shuttering of thousands of small businesses," investigators said.

Those decisions resulted in "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 report said.

 

[DRob]

Dang.

I can't help but believe poor old Neil will soon be joining the ranks of the unemployed.

 

[sadclownwp]

yes yes, we all know that the obama administration sours everything it touches. Go Ron Paul 2012

 

[downzero]

Oh, please. It was a bad policy but there's no evidence that it caused anyone to lose their job. It's just as stupid as the administration saying that the stimulus saved and/or created jobs. Neither is empirically variable.

 

[BloodEclipse]

Oh, please. It was a bad policy but there's no evidence that it caused anyone to lose their job. It's just as stupid as the administration saying that the stimulus saved and/or created jobs. Neither is empirically variable.

So all those Salespeople, Service Techs, Parts People, Car Washers and Detailers etc.. found new jobs at other dealerships?
Open your eyes, jobs were lost by the thousands.

 

[lashicoN]

So all those Salespeople, Service Techs, Parts People, Car Washers and Detailers etc.. found new jobs at other dealerships?
Open your eyes, jobs were lost by the thousands.

How many jobs were saved?

 

[BloodEclipse]

How many jobs were saved?

You forgot the purple.

 

[lashicoN]

You forgot the purple.

I was honestly asking. I don't know very much about the auto bailout. I know they spun it as all of these companies were going to go completely out of business so they gave them a bunch of our money.

If they all had gone under, wouldn't even more people be without jobs though?

 

[BloodEclipse]

I was honestly asking. I don't know very much about the auto bailout. I know they spun it as all of these companies were going to go completely out of business so they gave them a bunch of our money.

If they all had gone under, wouldn't even more people be without jobs though?

The story in the OP isn't about the decision to give the Automakers TARP money. It was about the Govt mandate to close dealerships. If a dealership was profitable why force them to close? The Govt used Toyota as a model and wanted us to match them. I now have to drive over 20 miles to have my car serviced because my friendly local dealer was forced to close.
I work for GM and I honestly feel we would have been better off to have never taken the first Govt $.

 

[ATOMonkey]

Gotta pay off the UAW.

The companies should have been allowed to bankrupt. Toyota, Honda, Ford, et al would have then been able to buy production capacity for pennies on the dollar, resulting in more robust and profitable auto companies, and either a reduction in the price of cars, or an increase in the profitability of companies that have proved to be good stewards. Win for everyone.

Now, we have 2 companies that continue to hemorage money, no reduction in the price of cars, no increase in the profit of carmakers, lose lose lose lose, all around.

 

[irishfan]

Gotta pay off the UAW.

The companies should have been allowed to bankrupt. Toyota, Honda, Ford, et al would have then been able to buy production capacity for pennies on the dollar, resulting in more robust and profitable auto companies, and either a reduction in the price of cars, or an increase in the profitability of companies that have proved to be good stewards. Win for everyone.

Now, we have 2 companies that continue to hemorage money, no reduction in the price of cars, no increase in the profit of carmakers, lose lose lose lose, all around.

Get off the union/anti-union wagon and realize it is way more than that. Who really knows how many jobs have been saved or lost? What we do know is that over a trillion dollars is owed to many countries for a very stagnant economy as the return. Going back to Bill Clinton and NAFTA and then followed by George W. Bush we kept hearing how many jobs were created but there was no real proof. What there has been plenty of proof of is that there has been a lot of $8-$10 an hour jobs while hundreds of thousands of higher paying jobs have been lost. We have had a continuous run of globalists regardless of the party the represent and that has been the death of our economy.

When will people realize that the party beside a persons name means nothing anymore and that leaders in both groups want to bring America down so that we are on par with the rest of the world?

 

[9lock]

When will people realize that the party beside a persons name means nothing anymore and that leaders in both groups want to bring America down so that we are on par with the rest of the world?

By the time most figure that out it will be to late, kinda looking that way already, just in the last 5 years I have noticed an escalation on internet warfare on the forums, millions are unaware there are shills among them pushing thery're narrative.

 

[jedi]

I recall seening an blurp on the news that the majority of the car dealerships that were axed also happen to be either Republican owed or the owner was not an I7BO supporter. Hum... Chicago style politics?

 

[ATOMonkey]

Don't tell me to get off the anti-union soapbox. Who was paid first in the bankruptcy, bond holders or the UAW?

You axe the dealerhips, but save the UAW jobs?

This administration blatently caters to an obviously corrupt UAW. I'll call a spade a spade when I see it.

 

[irishfan]

Don't tell me to get off the anti-union soapbox. Who was paid first in the bankruptcy, bond holders or the UAW?

You axe the dealerhips, but save the UAW jobs?

This administration blatently caters to an obviously corrupt UAW. I'll call a spade a spade when I see it.

In all honesty the Federal Government was first in bankruptcy Also, regardless of UAW or not I feel that if all the big auto plants shut down then we are screwed. Yes, the UAW has cut their own throats and will continue to do so until they are gone probably but we need the auto jobs here.

 

[ATOMonkey]

They won't "shut down" though. The market still demands that XXX cars be built each year. If GM doesn't build them, then toyota or honda or kia or ford will.

Also, very few cars are actually imported anymore. Most "imports" are assembled in the USA.

Parts suppliers like firestone, Johnson Controls, Bosch, etc will continue to make parts regardless of whose name is on the outside of the assembly plant.

 

[John Galt]

Gotta pay off the UAW.

The companies should have been allowed to bankrupt. Toyota, Honda, Ford, et al would have then been able to buy production capacity for pennies on the dollar, resulting in more robust and profitable auto companies, and either a reduction in the price of cars, or an increase in the profitability of companies that have proved to be good stewards. Win for everyone.

Now, we have 2 companies that continue to hemorage money, no reduction in the price of cars, no increase in the profit of carmakers, lose lose lose lose, all around.

Get off the union/anti-union wagon and realize it is way more than that.

Considering that the unions were handed app. 60% ownership of the companies over the secured creditors, who got pennies on the dollar, the taxpayers took it in the shorts for about $60 BILLION, AND centuries of contract law were dismissed, I'd say that something certainly seemed to lean the unions way. ATOMonkeys assessment about Toyota, Honda, FORD, being able to proceed by purchasing the productive remnants of an un-productive company seemed to be a pretty spot-on reference to Free Market principles. What's wrong with that?

 

[ATOMonkey]

Just because a company goes away, doesn't mean the demand for their product follows them.

 

[9lock]

And don't forget we get all this info from the media and we can believe "EVERYTHING" the media tells us because it is on TV so it must be true, Right?

 

[IndianasFinest]

I am a service tech at a Ford dealer here in town, and I can tell you first hand when all this trashery went down there was a huge surge of people comeing in asking for applications. At one point in time my boss had a stack on his desk, I kid you not almost a foot tall. Lucky for me, I had the busiest year I have ever had here in 6 years of employment.