Fun with a 1987 Chevy Celebrity

BY: NCViking

Mitt Romney in November:

“IF General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won’t go overnight, but its demise will be virtually guaranteed.”

How prophetic. The difference today is that billions of taxpayer dollars have been flushed down the drain and the government has taken over 2/3 of a failing auto industry with Obama as the new ‘Chevy Celebrity’ CEO. Bankruptcy now can be ‘organized’ by the power of POTUS complete with violation of contract law, snubbing of senior creditors, threats, and control to protect the investments of donors like the UAW and contributing dealer owners. Oh, and lets not forget that Dems now have the power to force the auto industry into building those little green hippie vehicles nobody wants, for the greater good of course. What’s next, free cars to the downtrodden on the taxpayer dime? What the hell, we can afford it, right?

More Romney from November:

It is not wrong to ask for government help, but the automakers should come up with a win-win proposition. I believe the federal government should invest substantially more in basic research — on new energy sources, fuel-economy technology, materials science and the like — that will ultimately benefit the automotive industry, along with many others. I believe Washington should raise energy research spending to $20 billion a year, from the $4 billion that is spent today. The research could be done at universities, at research labs and even through public-private collaboration. The federal government should also rectify the imbedded tax penalties that favor foreign carmakers.

But don’t ask Washington to give shareholders and bondholders a free pass — they bet on management and they lost.

The American auto industry is vital to our national interest as an employer and as a hub for manufacturing. A managed bankruptcy may be the only path to the fundamental restructuring the industry needs. It would permit the companies to shed excess labor, pension and real estate costs. The federal government should provide guarantees for post-bankruptcy financing and assure car buyers that their warranties are not at risk.

In a managed bankruptcy, the federal government would propel newly competitive and viable automakers, rather than seal their fate with a bailout check.

Notice the difference in what Ronmey suggests and what is happening now. One is letting the wheels of capitalism work, while government stimulates innovation in the free market through investment in research and future technologies. The other is throwing billions in taxpayer money at a failing albatross, holding our collective breath while it inevitably tanks, then ultimately endorsing a government-knows-best takeover.

It is clear by this example where lines need to be drawn to distinguish Republican Conservative Capitalism from Democrat ‘Eurosport‘ Socialism. It is also clear who the leader of the GOP must be going forward.

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