Never in my wildest imagination would I have thought I would see headlines like "CEO's Fate Sealed in West Wing" or "U.S. Considers Bankruptcy for GM, Chrysler." That plus the appointment of a Director of Recovery for Auto Communities and Workers who is a think-tank type really does not guarantee any positive outcome for our friends and neighbors in Michigan.
And his first visit when he came to Michigan today? He schedules meetings with the Mayor of Detroit and the Governor. Now these two are a pair to draw to. They certainly weren't any help in mitigating the damages so far--what does he think they can do now?
The next casualty may be Ford who so far has done most everything right, at least they are not government owned and operated. But they will undoubtedly suffer if or when the other two enter bankruptcy and the same suppliers used by all three will be forced to give better deals to GM and Chrysler. So, will they be able to keep the profit margin they have negotiated with Ford or will they be forced to give the same losing deals to Ford? And who does this help, anyway?
Remember early on when we spoke of Fiat being able to garner 55% of Chrysler with little or no effort which gives them a nationwide dealership system for their little cars? You know, the size car that already has 145 days plus supply sitting on dealers' lots. And this time it isn't even a voluntary deal between Chrysler and Fiat. Now Obama has said that Chrysler absolutely, positively must include the Fiat deal. (Remember, the Fiat deal only goes through if more money from the government is included. And that's apparently perfectly OK with Obama.)
The administration says it will extend to auto industry employees who lose their jobs the same benefits that go to those who lose their jobs due to import pressures. 1-retraining, 2-income support and 3-health-care extensions. They say present laws would have to be re-interpreted. What??!! All over Michigan helping hands have been extended to early victims offering training, unemployment and health care assistance. I don't see the difference.
So this is what Socialism is all about. Don't tell me that European Social Democracies are much more extensive--it's just a matter of time. Is this another trickle down theory? Start with the biggest financial institutions, the biggest industrial base and then see where there are leaks in the dike we call American business. Taking away tax breaks and levying higher estate taxes on family owned businesses are certainly the next notch in his belt.
Oh! Oh! Don't forget the cost of living being taken away from seniors on Social Security just when the inflation spigot has been turned on. Up until now we have been worried about future generations. Now we have a President who believes in equal opportunity suffering.
Really sorry to leave you with this, but we can't avoid it, can we.