Thursday, August 16, 2012

Barack Obama - #4131 - Taxpayer's Auto Bailout Losses Mounting - The Blaze

Taxpayers will lose even more on the auto bailout than previously thought, as the Treasury has just revised its estimate upward to $25 billion. This may still underestimate the losses to come—yet President Obama plans to tout the auto bailout as a key accomplishment of his Administration. Politico recently obtained a draft of planning documents for the Democratic National Convention, finding a repeated focus on the auto bailout. The draft described the convention’s objectives: Tell the story of the President’s accomplishments—the auto rescue, manufacturing, ending the war, health care, energy—as central to his fight for the middle class and America’s long-term economic strength. As the losses continue to grow, will the President acknowledge that the only people truly “rescued” were unions? The President could have kept the automakers running without losing money—if he had restricted his Administration’s involvement to only providing bankruptcy financing. Instead, the Obama Administration involved itself heavily in the bankruptcy process, picking winners and losers instead of following normal bankruptcy law. Heritage labor expert James Sherk and co-author Todd Zywicki found that all of the taxpayer losses occurred because the Administration manipulated bankruptcy law to shelter the United Auto Workers’ (UAW) compensation. None of the losses were necessary to preserve jobs, and taxpayers spent billions to prop up the compensation of some of the most highly paid workers in America.  Read more........

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