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A story from the Rhino Times we liked:
Full story is here By Author John Hammer.
The American automobile industry was nationalized this week. The federal government now owns 60 percent of what used to be General Motors and now could more accurately be called Government Motors. Or you could forget GM altogether and call it Obamotors.
What was once the world’s largest automobile manufacturer is now being run by a man who has never run anything bigger than a lemonade stand. A man who has no business experience. President Barack Hussein Obama doesn’t know the corporate world and doesn’t know the world of small business. To use a phrase that has been way over used: He doesn’t know business on Wall Street and he doesn’t know business on Main Street. Obama has very little experience doing anything other than running for office, and now he is going to fix General Motors. Anyone who thinks he isn’t going to run the company needs to check and see how Chrysler the first automobile company to fail, was told how much it could spend on advertising this spring.
But it is true that Obama will not be running the day-to-day operations of GM; the White House has a 31-year-old, almost-law school graduate who essentially knows nothing about automobile manufacturing who will be doing that. His claim to fame is that he worked on the Hillary Clinton campaign but was smart enough to switch over when he realized his candidate was not going to be the one. Someone smart enough to switch campaigns certainly deserves a shot at running one of the nation’s largest companies.
But it doesn’t matter that he doesn’t know much because whereas the old GM used to have to make a profit, the new GM will never have to worry about that again. GM can be like the Postal Service and Amtrak, where government subsidies keep the ball rolling.
Imagine for a moment that in its first year of operation Government Motors loses half as much as General Motors did in its last year of operation. That will be dubbed an enormous success and will still cost the American taxpayers billions.
Knowing nothing else about a product, would you rather buy a product made by the government – where quality, service and dependability make no difference – or from a company that is trying to make a profit and therefore quality, service and dependability are paramount? Or to put it more bluntly, would you rather buy a car made by Government Motors or one made by Toyota?
Most people are not going to choose government cars. But look at all the cars that are bought by other governmental units. They will have to buy Government Motors cars. The rest of us will be encouraged to buy GM cars by giving us great tax breaks on the cars. Or what about this? Your first speeding ticket is free in a Government Motors car. Why not? The federal government can force the states and cities to do anything it wants by threatening to withhold funding.
If Government Motors cars don’t sell having the president of the United States stand behind the warranty, all kinds of financing deals can be made. The federal government could decide that buying a GM car is tax free, or that 0 percent financing is too high, or that every homeless person should be given a car. The sky is the limit.
How is Ford going to compete? Some people are not going to buy an American car despite all of the incentives that may be coming down the pike, but it is going to be really tough to convince people to buy an American car that doesn’t have all the government incentives.
The government can do what it does really well and write laws that make it sound like conservation is being encouraged, but the specifications will be such that only Government Motors cars qualify for the incentive or tax break. It’s not going to be pretty and it is going to be extremely expensive, but socialism is.
Nationalizing industries is socialism, and that is what this is. It hasn’t worked well in other countries, but the voters of this nation have elected a president who has already nationalized financial institutions and is now working on the manufacturing sector. It appears he is going to do everything in his power – and he is the most powerful man in the world – to bring socialism to the US.
Right now he is using the economic crisis to expand the power of the federal government, but he will also use the wars in Iraq and Afghanistan. If the economy improves it will be because of government action, which will mean we need more government intervention to keep it improving. If it doesn’t improve then it will need more government intervention so it will improve.
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The stimulus package is one of the biggest and certainly the most expensive hoax ever foisted on the American people. The most recent estimate is that 10 percent of the $787 billion stimulus package would reach the economy this year. Not this month, or this summer, but before Dec. 31, 2009.
The stimulus bill was supposed to give the economy a shot in the arm, but how does theoretical money being held by some Washington bureaucrat help the economy? As of the end of May the estimate was that about 6 percent of this money that had to be spent immediately had actually been spent.
Under The Hammer
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Tags:american automobile industry, author john hammer, federal government, government motors, government motors cars, hillary clinton campaign, largest automobile manufacturer, president barack hussein obama, president of the united states, under the hammer