I remember back when Obama first came into office and he was trying to stop the free-fall in the economy, polling consistently showed that the auto bailout was the least popular of his emergency measures. Of course, the bailout originated with the Bush administration which provided a bridge-loan to keep the industry afloat until Obama could settle on a strategy. I was always a little confused about why people were so hostile to the idea of saving the auto industry. I have deep roots in Michigan and went to college there, so I understand the culture. And I kind of chalked up the national polling numbers to the fact that most people are not familiar with Michigan’s culture and did not understand the kind of devastation they were facing. I’ve read that even today, though, Republicans in Michigan oppose the bailout. I don’t know how to explain that at all. My best guess is that the right-wing media wurlitzer is so effective at reaching Republican voters that it can make them believe anything, no matter how contrary to their experience and culture.
It’s a mystery to me that Mitt Romney is polling even with Santorum in Michigan. After advocating a liquidation of General Motors and Chrysler, I’m surprised Romney can even walk freely in the state. Sen. Carl Levin (D-MI) does a great job of eviscerating Romney’s positions on the bailout in today’s Detroit Free Press.
Romney has criticized President Barack Obama for not arranging a “managed bankruptcy” for General Motors and Chrysler, which he called his preferred option. Of course, managed bankruptcy is precisely what happened to both companies. Romney has claimed that his real problem is the government’s financing of the automakers’ bankruptcies. Of course, private financing was impossible in the midst of the worst financial crisis in generations. Government refusal to provide financing would have been the death knell for both companies.
Having lost those two arguments, Romney is trying out two new ones. They appear to boil down to this: Bond speculators should have been protected at the expense of workers, and taxpayers should dump our investment in GM now, even if it means we take a bath.
I know it’s a little complicated, but the bottom line is that what Mitt Romney advocated was to let the automakers go broke. He wanted the government to stay out of it, which would have meant that the companies would have had to liquidate in order to pay off their creditors. They would have gone out of business. The option Romney advocated wasn’t possible because there was no private capital available. That’s the key fact in this dispute. If you can’t agree on that fact, then you’re just engaging in bullshit.
Now, Romney has tried to contort himself in countless ways to explain away his original position. He’s said that the government actually followed his advice and took GM and Chrysler into bankruptcy. But his advice was for the government to stay out of it. He’s said that his problem is the shareholders took a bath and the unions got a sweet deal. That’s an odd stance to take politically, and it ignores that the unions took a gigantic hit themselves. And he’s argued that the government should divest itself from GM immediately, even though, as Senator Levin points out, that would be a very unwise way to manage the taxpayers’ money.
This is what happens when you take a poll-driven position that is wrong on the merits. Romney opposed the bailout because he saw it as a way to score political points. Because the bailout was deeply unpopular, he assumed that he’d be well-placed later on for having opposed it. And so one piece of bullshit begat another and begat another and begat another. In the end, Romney wound up in the same place he wound up with ObamaCare, out on an island surrounded by a sea of contradictory nonsense and lies, looking like the most inauthentic man to ever run for high office.
The position of the republicans seems to be that global private capitol should get everything it wants all the time. The mere fact of being global capitol means that its cause is ordained from on high and that to oppose it is economic sin. But basically they just want all the money.
Isn’t Romney’s position on the bailout directly traceable to his business dealings? It sort of boils down to bailouts for me and my partners but not for thee.
Isn’t Romney’s position on the bailout directly traceable to his business dealings? It sort of boils down to bailouts for me and my partners but not for thee.
Yes!!!!!!!!!!!!!!!!!!!!
I think most people who opposed the auto bailout did so because they didn’t think it was going to work – that we would be throwing a large amount of taxpayer money down a hole, and the automakers would run through it without doing anything real to turn themselves around, and then be right back on the edge of going out of business within a couple of years, with billions of dollars of our money gone.
The Big Three, especially GM and Chrysler but Ford too, had been very poorly-managed companies for quite some time when the recession hit. The recession had created an emergency liquidity situation that required someone to float them capital, yes, but they also had a longer-term management problem that had put them on a downward slope and left them vulnerable to such a shock. It was very much an open question whether a government takeover would bring about a turnaround, as opposed to just a floater loan and some posturing.
I don’t think this concern was completely unwarranted. If the previous administration had been in charge of executing this policy, I don’t think they would have been able to pull it off successfully.
Maybe some people rationalized it that way, but most of the people I know that were opposed to it felt that way because they have deeply irrational anti-union views, and hate the whole idea of helping workers.
And most of these people refuse to believe the bailout worked as well as it did.
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FactCheck: Labor Costs Aren’t the Same as Wages Earned
"But I will not let myself be reduced to silence."
If you look at the polling, though, there was a majority of the public who were opposed to the auto bailout – a much larger number than those who hold strongly anti-union views.
There was a small, but non-trivial part of left Blogistan that also opposed the bailout….
Not large, but out there.
Never saw it myself, but it happened.
For ‘Never saw it myself, but it happened.” read “Never saw it that way myself, but it happened.”
looks like the Obama ’12 campaign not surprisingly agrees with you about Romney BS in regards to the auto bailout.
Greg Sargent has a post up along with a video link to the OfA campaign ad going up in Michigan ahead of the primary.
Going on offense on the auto bailout
Fat cat union members who made shitty cars that cost an arm and a leg.
It was an easy political pitch that the UAW was the real entity getting bailed out, not GM and Chrysler.
One thing that never gets mentioned in these posts;
Michigan has a REPUBLICAN governor, elected slightly more than a year after the bailout. With 58% of the vote. And he is an ex-venture capitalist.
That means he got a lot of union votes, and a lot of votes from people who depend on a healthy auto industry. And he endorsed Romney;
http://www.huffingtonpost.com/2012/02/15/rick-snyder-mitt-romney-endorsement_n_1280522.html
He says he supports the bailout, yet he also supports the person who says it was a mistake, and whom would never do such a thing.
Americans are the stupidest people on earth.
Snyder, Walker, Kasich were all elected to swing/purple states. They have ALL abused their mandate in extreme ways. This needs to be highlighted. The conservadem morons who voted for them are beginning to realize that you cannot vote for a snake and expect the snake to act in an honorable manner. Walker, Kasich, Snyder are all way down in the polls, and we need to remind conservadems that they cannot vote Repukeliscum.
And also remind ConseraDems that you can’t ponder to assholes like the GOP. They’ll just slap your hand away then beat you over the head with a stick.
It would be interesting to go back and see the information about the candidates that informed the Michigan voters in 2010. What was striking about Wisconsin was the extent that the GOP lied about what it was going to do and how heavily the carpet bombed ads were laid on.
Only certain high-information voters are the stupidest people on earth. The remainder are too distracted to get information straight under the best of circumstances.
even THE ECONOMIST manned up and said ‘ we were wrong about the bailout.’
Willard cannot seem to utter those words.
and, for me, that’s fine.
because that means more ads in Michigan and Ohio.
The auto bailout was certainly just the tip of the spear in saving the economy over the long run.
If the bailout had been forsaken by the govt then the tens of thousands of vendor businesses, their employees and all that they do to keep a larger economy going would have been closing their doors. It’s likely that those shared vendors’ struggles would have wrecked havoc on the other automakers and on and on.
There’s a whole lot of America that should be thanking the Unions hands down for their part and then thanking Obama and his team. It was ugly and took courage.
It seems that Santorum has gotten wind that Romney is courting Ron Paul.
A Romney-Paul ticket, most congenial since Eisenhower had Nixon foist on him. An elephant going in two directions at once. I guess that Romney next promises Santorum HHS and Gingrich Secretary of State.
The expression “do anything to become President” comes to mind.
A Ron Paul vs. Joe Biden debate would be Must See TV…
That’s the key fact in this dispute. If you can’t agree on that fact, then you’re just engaging in bullshit.
canvas pictures
Canada was also involved in the bailout. The Reps seem to always forget that.