UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: MadCapitalist Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 734604  
Subject: Obama didn't save auto industry jobs. Date: 10/29/2012 6:52 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 10
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.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement