Ohioans Are No Fools: Obama Did NOT Save Your Automotive Jobs"The Obama bankruptcy reduced GM’s employment by twenty five percent in its immediate aftermath. (Don’t worry, UAW members left with gold-plated buyouts). The UAW contract remained in place. Instead, major cost-savings came from expropriating GM’s creditors, leaving the company with no interest expenses, and freeing the “new” GM from corporate income taxes. (And I thought Obama was against tax loopholes for big corporations.) The job losses were distributed among the various states in which GM operated, including Ohio.GM’s 25 percent loss of employment was about the same as in the major airlines that went through normal bankruptcy. Hence, there is no evidence that Obama saved GM jobs over a Romney structured bankruptcy. In both scenarios, some jobs would have been shed but most would have been retained. (Obama enthusiasts will claim I am mistaken, but they are political first-responders, not economists).----------------------------------------Clinton and Obama’s convoluted argument is that the entire automotive industry is so interconnected that if one component fails, all fail! If one worker ant in an ant colony dies, the whole undertaking collapses, I guess. More than one hundred computer manufacturers have ceased operations, but industry employment continues to expand. In such cases, competitors step up production and hiring to make up the difference. When GM hung its dealers out to dry, they became Honda, Toyota, or Volkswagen dealers."http://www.forbes.com/sites/paulroderickgregory/2012/10/28/o...Democrats have to lie to maintain the narrative.
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