I got this email today from Diaper Dave:
Last week, President Obama visited a Chrysler plant in Ohio to congratulate himself on his “tough decisions” to extend $60 billion in bailouts to American automakers General Motors and Chrysler.
It’s a pretty outrageous move for the president to claim credit for bailouts that, even according to White House estimates, will result in a loss of at least $14 billion for American taxpayers.
Not only are $14 billion of your tax dollars gone – forever – but the Obama administration gave GM a special deal that will save the company billions of dollars in taxes that GM would have owed if they had gone into regular bankruptcy. Even more outrageously, much of Chrysler’s bailout money was used to pay for gold-plated union pension packages, instead of going to more deserving creditors.
By stepping in and giving special treatment to the failing automakers, the Obama administration sent a message that if a company is large enough, they don’t have to worry about being held responsible for their mistakes. It’s the same old “too big to fail” mentality that puts taxpayers on the hook for the irresponsible decisions of other out-of-control businesses.
That’s why I opposed the initial automaker bailouts under President Bush and the dramatically increased bailouts under President Obama. The automaker bailouts are just one example on a long list of wasteful spending that has led America $14.3 trillion into debt. I’ve fought hard to get the federal government out of the bailout business and will continue fighting to end these dangerous policies that have cost billions upon billions of dollars in taxpayer money.
It is typical of Vitter to characterize the return of 77% of the Auto Bailout as a loss of $14 billion. He ignores the fact that had GM and Chrysler gone bankrupt, some 2.5 million jobs would have been lost, cutting nearly $100 billion in wages; He also finds it outrageous that some of the bailout for Chrysler went to shore up pension plans, pensions that were part of legal contracts that Chrysler entered into and is obligated to pay. He ignores the fact that the bailout saved the economies of Michigan, Illinois and Ohio.
He is blissfully ignorant of the changes that GM and Chrysler have made; they are now producing smaller, more energy efficient vehicles-- and Chevy's plug-in, the Volt, has been named Car of the Year.
Vitter sees investing $14 billion in our economy as a huge waste of money--no wonder he voted for the Ryan "budget".