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Obama didn’t save auto industry; Romney never said, “let Detroit go bankrupt”

October 30, 2012

Most Americans believe the lies–Obama saved the auto industry, and Romney said, “let Detroit go bankrupt”–because our mainstream media act more like President Obama’s PR team than as reporters who’ve been entrusted to expose incompetence and corruption in society and government.

President Obama and his surrogates have told those lies hundreds if not thousands of times, so most Americans now believe they’re true.

Reporters should have exposed those lies.

Americans have the right to know, President Bush and, later, President Obama bailed out two car companies, GM and Chrysler (see footnote 2), so Obama didn’t save the auto industry.

Americans should know, Chrysler is now an Italian car company–not the American success story that Obama has bragged about.

And GM may go bankrupt again or be bought by China  (see GM and Chrysler timelines in ).

We should know, President Obama ultimately did let GM and Chrysler go bankrupt after they’d been bailed out twice, once in fall 2008 by Bush and again in January 2009 by Obama.

We have the right to know, “Let Detroit Go Bankrupt” is the title that a dishonest editor put on Mitt Romney’s op-ed about how to save the auto industry by using managed bankruptcies to reduce GM’s and Chrysler’s debt load and by using government-loan guarantees to stabilize the primary and secondary industries and to reassure buyers and investors.

We should know, President Obama’s version of managed bankruptcy left GM debt heavy, less likely to succeed, and favored Obama’s campaign donors and rich Americans:

  •  enriched the United Auto Workers Union, which has donated tens of millions of dollars to Obama’s campaign ( e.g., Obama gave UAW a 55% stake in bailed-out Chrysler ( ) and then sold the stake to Italy’s Fiat);
  • wiped out some workers’ pensions (e.g., Delphi);
  • wiped out bondholders so that investors are now less likely to buy corporate debt (especially GM’s);
  • cost taxpayers more than $50 billion just to bail out GM;
  • cost us $24,000 per car for the fourth auto bailout ( i.e., Cash for Clunkers; see footnote 3 &  );
  • cost us $7,500 to $10,000 per car sold (i.e., rebates for the rich to buy cars that they can afford without taxpayer help).

Most Americans would be shocked to learn how little we’ve benefitted from the tens of billions of tax dollars spent on the bailouts.

The Obama Administration’s own statistics reveal that only 400 auto-related jobs have been created in Ohio as the result of Obama’s “saving” two car companies (see Ohio’s Governor John Kasich on MEET THE PRESS, 10/28/2012).  About 1,800 jobs were added at an auto plant in Belvidere, Illinois, at the cost of $60 million in tax breaks and the $1.3 billion Chrysler didn’t repay taxpayers.

Unfortunately, few Americans will be shocked much less upset by anything President Obama does, because the mainstream media won’t report anything negative about him–at least not until after he’s re-elected.

Perhaps it’s time that Americans have a serious conversation about how much the media benefits from the billions being spent on elections, especially when their candidates win.

In the meantime, we can expose the lies, demand corrections, and boycott the media that help politicians lie to us.


Footnote 1:  For the past four years, President Obama often has taken credit for others’ successes while refusing to take responsibility for his own failures.

Footnote 2:  Since the fall of 2008, there have been five auto bailouts:  Bush’s bailout in fall 2008, Obama’s $20 billion bailout in January 2009, Obama’s managed bankruptcies of GM and Chrysler in spring 2009; Cash for Clunkers in 2009, and myriad rebates for rich folks who could afford to buy their own damned cars without rebates in 2009-12.

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