Obama Promises More Bailouts

Think Obama saved Chrysler and GM?  Look out, he wants to do the same thing for every American business.  In Colorado today, Obama touted the GM recovery and then said he wants to do the same thing for every industry.  Obama repeated the claim that GM is #1 again because of him.  Of course, that isn’t true anymore, but when did truth ever stop Obama?  Obama, who invested billions in taxpayer stimulus dollars on foreign countries, claimed that Romney didn’t have private sector experience.  He said instead that Romney had only invested in companies, some of which were pioneers of outsourcing.  Of course, Obama is referring to his previous campaign lie that Bain companies outsourced jobs while Romney was still there, a claim that has been debunked by The Washington Post and others.

government motors

Obama: Let’s do it again

So what was so great about what Obama did for GM?  Do we really want him doing that for every industry?  For example, do we really want him taking taxpayer dollars to buy stock in major corporations in every industry?  In order for the US to break even on the GM bailout, Obama would need to sell the government owned GM stock at $53 per shareIt is currently at about $20.  I don’t know about you, but if I had a choice I would fire Obama as my financial adviser.  In fact, Obama’s “success” with GM translates to GM’s market share being at a 90 year low.

Despite Obama throwing billions of taxpayer dollars at GM to produce what he calls a miraculous recovery, they still went into bankruptcy.  In fact, GM’s unavoidable bankruptcy may have had more to do with their survival than Obama’s foolhardy stock purchase with our tax dollars.  So what would the difference between Obama’s plan and Romney’s plan have been?  Billions of dollars in taxpayer money.

GM’s recovery has resulted in the loss of 1/3rd of their brands, 900 dealerships, 13 plants, and 22,500 jobs.  Obama wants to repeat this “success” with every other American industry.

Throw in the emerging retirement scandal where the administration stole 20,000 pensions in order to pay off union supporters, and GM is a perfect example of exactly what we DON’T want for every other industry in America.  In fact, all other things being equal, Obama’s promise to repeat the GM fiasco with every other industry in America is a perfect reason to make sure he never has the chance.

If you want Obama to take your tax dollars and invest them in stocks that you personally wouldn’t buy, then by all means re-elect him.  The too big to fail industries in corporate America could use the help.  Unfortunately, Obama’s only options for a bailout of every American industry are more China debt or higher taxes on every level of income.

At least he’s not promising to do what he did with Chrysler to every American Industry.

Obama’s Energy Ideology Failure

T.Boone Pickens commented today that the US is the “only country in the world that doesn’t have an energy plan.”  In an article discussing natural gas prices, he spoke about his support for the bi-partisan NAT GAS act which is making it’s way through Congress and will probably be vetoed by Obama.  But it seems that criticizing Obama is not a popular move among people who have a lot to lose.  So Boone Pickens was slow though to criticize Obama, saying that gas prices were not Obama’s fault but were instead the fault of limited global supply.

That would be kinda like saying “The Jets bad year wasn’t Rex Ryan’s fault.  They just had bad coaching last year.”

Boone Pickens got another thing wrong.  The US does have an energy policy.  It is Obama’s energy policy which is designed to increase the price of gas until the pain causes entrepreneurs like George Kaiser of Solyndra to invent new forms of energy and consumers like you and me to buy them.  He enacted this policy again on Thursday when he lobbied Democrat Senators to ensure that they killed the Keystone Pipeline again.  Driving up gas prices until we all stop using gas and save the planet is a noble idea, as long as stopping the specter of Global Warming is such an honorable goal that we are willing to sacrifice the poor on its altar.

Consider this: I have an older car that gets about 28-30 mpg.  I have already inflated my tires and it didn’t seem to make gas prices go down.  Obama may have labeled oil the “Fuel of the past”, but if I put wind, solar, or algae in my gas tank, my car will not run.  So my choices are to pay $3.75 a gallon for gas ($3.25 in states that have access to Canadian sands oil, like Colorado), or buy a brand new electric car or hybrid.  A Chevy Volt costs about $31,000, and I’m pretty sure I don’t get a discount even though taxpayers own a sizable portion of GM thanks to Obama’s bailouts.  I would have to take out a loan.

I’m doing OK.  It’s a good year for tax accountants since the code just keeps getting more and more complex and the IRS keeps getting worse and worse when it comes to customer service.  I’m not rich by any means, but I could afford the payments on a Volt.  But what about the single mother who has to work just to put food on her family’s table?  What about someone for who one Chevy Volt represents a year’s wages?  Chances are there are lots of people out there who can’t afford $3.75 a gallon gas, but also can’t afford a $31,000 Chevy Volt and are not those “qualified buyers” they always talk about in the commercials.

Obama’s energy policy is: “Sucks to be you. Pray someone invents a cheap alternative that you can afford, and quick”

Here is the real kicker with Obama’s failed energy policy:  The people who are in a position to invent and bring to market an alternative to oil are not the same people who experience a motivating level of pain when gas gets up to $3.75 a gallon.  Obama’s strategy of hiking gas prices until it hurts so much that we invent an alternative will destroy the poor long before it ever affects someone who could actually accomplish that.  Why do you think his tax subsidized green energy companies keep going bankrupt.

Boone Pickens and other energy moguls are not going to invest in natural gas, wind, solar, ethanol and other forms of energy because they can’t afford to fill their tanks.  They are going to do it to make a profit.  This means they are going to do it when Americans can afford it and it makes sense as an alternative to oil.  They are going to do it when Americans can afford to buy Volts, solar panels, and cars that run on algae.  What Obama doesn’t seem to grasp is that the very thing that will put Americans in a position to buy green energy is economic growth that can’t happen when people can’t afford to drive to their jobs.

Obama calls “Drill Here, Drill Now” a bumper sticker slogan, not an energy policy.  It’s sad when a bumper sticker is smarter than the President of the United States.

 

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