From Edwin J. Feulner at the Patriot Post:
We all know how the Obama administration likes to portray the auto bailout: A generous infusion of money enabled the government to save General Motors and Chrysler. Jobs that would otherwise have disappeared were rescued by this taxpayer-funded largesse. It was expensive, but we had no choice.
The reality is far less uplifting: Administration officials could have ensured that the bailout didn’t cost you and me a dime. All they had to do was require the United Auto Workers to accept standard bankruptcy concessions. Instead, the UAW got special treatment.
Subsidizing the UAW’s above-market pay and benefits was expensive. The union workers at GM and Chrysler are among the highest-paid workers in the country. Some $26.5 billion of what the government paid for the bailout went toward making sure that these workers could continue to enjoy compensation that many Americans can only dream about. As labor expert James Sherk puts it, “The auto bailout was actually a UAW bailout.”
For perspective, $26.5 billion is more than what we spend on foreign aid each year.
By contrast, look what Ford did. It mortgaged its assets and began restructuring in 2007 (a year before the housing market fell in), so it didn’t need a bailout. GM and Chrysler, however, continued business as usual. So when consumers began cutting their spending, both automakers ran out of money.
At that point, they should have declared bankruptcy, restructured and did what was necessary to emerge as stronger and more profitable. Instead, they went to Washington with their hands out. The Bush administration loaned them enough from the Troubled Asset Relief Program (TARP) to keep them going for a few months. Then the Obama administration forced them, as a condition for receiving taxpayer funds, to go into bankruptcy.
The result was what some lampooned as “Government Motors.” Both companies sold their assets to the new GM and Chrysler, which were now partially owned by the government. Since then, as the companies have recovered, the government has been selling off its shares — at a loss. Much of the bailout will never be repaid.
All together, taxpayers stand to lose $23 billion. That amount would be zero, however, if union compensation wasn’t so high.
To see why, consider the average hourly wages for workers at the “Big Three” automakers. At GM, workers were making $70.51 per hour (pre-bankruptcy). At Ford, it was $73.26; at Chrysler, $75.86. Compare that to the hourly wages for workers at other car companies: Toyota ($47.60), Honda ($42.95) and Nissan ($41.97).
Why are Detroit’s labor costs so much higher? The UAW. Members get generous retirement and health care benefits. They can collect pensions in their 50s. And retirees get full health coverage until they become eligible for Medicare. Even then, they enjoy additional coverage in addition to the government program. Sounds great — if it’s affordable.
What does the average Medicare recipient pay out of pocket annually? $4,200. But for UAW retirees, it’s only $285.
The UAW made some large concessions, but for new hires only. There were a few changes for existing UAW members, but nothing major — changing overtime calculations, for example, and a bit less vacation pay. And their benefit funds were treated better than other creditors were, even though bankruptcy law calls for creditors to be treated equally.
“We should have asked the UAW to do a bit more,” President Obama’s “car czar” has admitted. “We did not ask any UAW member to take a cut in [his] pay.”
So, fellow taxpayers, the burden falls to us. We’re making it possible for two companies that refused to declare bankruptcy and restructure, as Ford did, to pay their union workers the same high rate that helped get them into trouble in the first place.
Remember that the next time you hear how the “auto bailout” saved jobs. In reality, it saved the UAW from its own folly — and stuck us with the bill.
(this is the upcoming new government motors car that will be named the obamacar and it will be mandatory to trade in your old vehicle for this one)
In The Aftermath Of SCOTUS Ruling On Arizona’s Immigration Bill, How Will Obama’s Actions Evolve?
While most of Arizona’s SB 1070 got struck down the most important component of law enforcement having the ability to check the immigration status of those suspected of being here illegally remains intact…for now.
While our panderer-in-chief remains in office and continues to flout the Constitution it remains to be seen how creative he’ll be regarding this setback to the lefts immigration agenda.
Ed Koch former Mayor of NY used to be a “political hero”of mine because he would base his opinions/endorsements on what he thought was right or wrong with no regard to party. That was the good old days. Today the Mayor acts the role of a political hack, foolishly looking for a way to remain relevant by supporting his party’s president right or wrong, even lying about Obama’s positions.
For the first 3 years of the Obama presidency, Koch criticized the President, calling him out on his Anti-Israel policies. But now he is a supporter, saying :
“Going to foreign affairs and Israel in particular, where I am very concerned that I think Israel is in great danger, where I thought the president was not giving enough attention,” Koch told WABC radio’s Aaron Klein. “He’s changed. And I believe I had something to do with the change.”
He added, “I think Obama has done a terrific job in the last six months in support of Israel. And I want to praise him and I want to reelect him.”
Change? Not in this life. While it is true that Obama may have toned down his anti-Israel rhetoric in an attempt to regain the votes and donations from Israel supporters sitting on the sidelines so far this political season. But Barack Obama has not changed his tune, just toned it down. If he wins reelection and (as he told former Russian President Dmitry Medvedev) he has more flexibility to do what he wants, his one-sided pressure on the Jewish State will increase.
Worst prom dresses ever!@
My friend Jane Woodworth looked over her newspaper, put down her coffee mug, and said , ” Imagine being so down and out that you have to deter people from talking about the economy with the news that you are an accessory to murder.” Nothing better summed up a week where the economy continued its tumble, the presidential approval rate continued its downward slide, and the President invoked executive privilege with respect to the government gun running operation which resulted in the deaths of hundreds of people including our own border agent, Brian Terry, and perhaps an ICE agent of ours as well.
There was only one thing left for the failing president to do. Make a claim of executive privilege, make it late in the game, after months of his Attorney General Eric Holder’s dissembling before Congress under oath, after repeated retractions of Holder statements which were proven false, a claim so weak that all it did was distract attention from the financial news and suggest to even the dimmest wit that the president himself was an accessory to murder. (Every respectable legal observer has announced the claim cannot be sustained.
The Media Quietly Awaits It’s Daily Talking Points…
Have a bite of this apple, my dear Barack…
Valerie Jarrett, the senior adviser whose exact responsibilities in the Obama administration remain unclear, used the term “we” instead of the President’s name in a speech on Saturday, leading some to speculate that Jarrett’s role in White House decision-making is larger than advertised.
NEW YORK (CNNMoney) — More than one in seven Americans are on food stamps, but the federal government wants even more people to sign up for the safety net program.
The U.S. Department of Agriculture has been running radio ads for the past four months encouraging those eligible to enroll. The campaign is targeted at the elderly, working poor, the unemployed and Hispanics.
The department is spending between $2.5 million and $3 million on paid spots, and free public service announcements are also airing. The campaign can be heard in California, Texas, North Carolina, South Carolina, Ohio, and the New York metro area.
“Research has shown that many people — particularly underserved seniors, working poor, and legal immigrants — do not understand the requirements of the program,” said Kevin Concannon, a USDA under secretary.
The radio ads, which run through June 30, come amid a bitter partisan fight over the safety net program. Republican lawmakers want to reduce funding for the benefit or turn it into a block grant program, which would also minimize the cost. Democrats, however, are not willing to make major cuts.
What an asshole as you know the boss okayed this!
WASHINGTON (AP) — The Justice Department has set up a hotline for the public to report potential civil rights concerns regarding the Arizona law that requires police to check the immigration status of those they stop for other reasons.
The hotline phone number is 1-855-353-1010. The email is: SB1070@usdoj.gov.
The Supreme Court unanimously approved Arizona’s “show-me-your-papers” requirement on Monday but struck down provisions that created state crimes allowing local police to arrest people for federal immigration violations.
On Monday, the U.S. Immigration and Customs Enforcement (ICE) agency suspended the federal program known as 287(g) for Arizona, which allows local law enforcement to investigate a suspect’s immigration status after an arrest had been made for any offense. The program has been highly effective in identifying criminal aliens at the local level.
The decision came only hours after the U.S. Supreme Court announced their decision to let stand the portion of Arizona’s immigration law which requires local law enforcement during routine stops to check the immigration status of anyone they suspect is here illegally.
According to the Department of Homeland Security, 287 (g) agreements are “not useful” in states that have enacted SB1070-type laws.
So, even if local law enforcement arrests an illegal alien, their requests to ICE are likely to fall upon deaf ears and the suspect will simply be released.
Exhaust: Jesse Jackson Jr. takes medical leave of absence Just needs to spend some quality time with one of his whores.
Hannity spoke with Arizona Sheriff Larry Dever about the Supreme Court ruling on the Arizona Immigration Law. Sheriff Dever spoke out against the lack of cooperation at various levels to respond to lawful requests, calling it a “slap in the face to the American public and law enforcement in general.”