The Essential Lesson of the Auto Bailout

The American Magazine

quote:

As of the 2008-2009 crisis, American workers in companies such as Ford, Honda of America, and Toyota had won the marketplace battle against GM and Chrysler for survival during hard times. They had planned successfully for a “rainy day,” proving their competiveness in the auto market. Unfortunately, however, they couldn't compete against the politicians in power, the rule-of-czar bankruptcy process, or intelligent design economics. When government wisdom, not consumer choice, decided which companies deserved to be kept alive and which types of cars consumers should decide to buy, it was the two failed companies that were rewarded; perversely, hard work and acting responsibly was not. What the responsible companies got was government-subsidized competition.

Comment:

Got that?  Two failed companies were rewarded, hard work and responsibility was punished.  This is perverse.  Yet, Chris Matthews wants to think of it as a big success.  It should be noted that the source of GM's sales are the government, so the bailout hasn't really solved any problems at all.  It has only made things worse.

By the way, "rule of law v rule of czar" is a good line.

Here's Matthews on Obama's big "success"

CHRIS MATTHEWS: I want President Obama to focus on something between now and November. What I'd like him to do is speak simply and clearly to this country about what he's accomplished. I said simply and clearly. Remember Denzel Washington in the movie Philadelphia? He played the lawyer who told prospective clients to "explain this to me like I'm a two-year old.". . . He needs to sell his auto-rescue plan, his jobs act, his health-care act as if he were talking to a two-year old. And he can do it.

Question:

Do we want a president who runs the country on the basis that he has to explain things to us like we are two year olds? That's not only an insult, but it is coming from someone who is imcompetent if this is regarded as an example of a success.

Romney, on the other hand, doesn't have to run away from this, as Matthews implies. But that would require some adults in the room as he explains why a bankruptcy would have been a better idea.