web analytics
April 18, 2014 / 18 Nisan, 5774
At a Glance
InDepth
Sponsored Post
Spa 1.2 Combining Modern Living in Traditional Jerusalem

A unique and prestigious residential project in now being built in Mekor Haim Street in Jerusalem.



J.E. Dyer: You’re Killing Me, Mitt

General Motors

General Motors
Photo Credit: Daniel Dreifuss/Flash90

Share Button

As with so many Romney-related flaps, the one surrounding his observation that he could take credit for President Obama’s restructuring of General Motors and Chrysler has been confused and out of focus. Well, maybe not out of focus, but focused narrowly – and with all the superficiality that can be mustered in 24 short hours – on Romney’s unconscionable triumphalism at Obama’s expense.

The temptation is strong to just let this one go. But it’s actually a perfect example of where Romney is, um, challenged, and why my enthusiasm for him remains tepid. The short version of my point is that the president has no business restructuring auto companies and trying to guide them through “recovery.” He is not empowered by any part of the US Constitution to do this, and it’s a terrible, horrible, no-good, very bad idea in any case.

If I want the services of someone who’s good at reorganizing auto companies, I’ll invest money in a private business. That’s not what we elect a president for. The president of the United States, our highest elected public official, needs to keep his paws off the management of private companies. When he doesn’t, the window is flung open to cronyism, graft, bad business decisions, and distorted, uneconomic incentives.

The US auto industry keeps snuffling up to the public trough – has been doing so for 30 years now – because it is required by the government to operate under unprofitable conditions. It is tended by the federal government as an interest of politically connected constituencies. It has been artificially constrained and incentivized for so many years now that to say it has “recovered” is a wholly political statement, bearing no useful relation to the Big Three’s actual profit-loss or earnings picture, stock price, or any other measure of business health.

In fact, Chrysler’s much-touted “payback” of its taxpayer bailout turned out to involve a shell game in which the US Department of Energy is lending Fiat $3.5 billion so that Fiat can pay off its US Treasury loan and pump Chrysler with cash by exercising an option to buy Chrysler stock. The Washington Times describes the transaction as follows:

So, to recap, the Obama Energy Department is loaning a foreign car company $3.5 billion so that it can pay the Treasury Department $7.6 billion even though American taxpayers spent $13 billion to save an American car company that is currently only worth $5 billion.

That’s government management in a nutshell. Romney can’t manage the auto industry better – not from the Oval Office. No one can. If he wants to run auto companies, he needs to see if Ford, GM, or Chrysler is hiring. If he wants to guide them through bankruptcy, he can become a federal regulator or get himself appointed as a bankruptcy judge – and in either case, follow the law on the matter as written by Congress, rather than getting creative and exercising powers the Constitution doesn’t give him.

When Romney speaks of the US auto industry recovering, he is speaking in the language of big, dirigiste government, accepting at face value the short-term effect of a bailout process that has served mainly to perpetuate unprofitable but politically entrenched conditions. It guarantees that more subsidies will be needed down the road. The taxpayer had to be billed for getting the Chevy Volt built and maintaining the political sway of the UAW, because those are special-interest mandates that no one would pay for voluntarily. The bailout under Obama has simply been a pretext for expanding the unprofitable conditions that make the US auto industry unable to truly “recover,” in the sense of not continuing to need bailouts.

A president who doesn’t see this is hard to get excited about. There is no point in claiming that Romney does see it, when he never speaks as if he does. About the auto industry bailout, what he ought to say is that it was improperly handled by Obama through executive actions that must not serve as precedents; that it hasn’t turned out to be a good deal for the taxpayer; and that due-process bankruptcy without presidential intervention would have been the right way to proceed and should have been defaulted too.

Romney’s utterances on this topic indicate that he is a big-government politician.  Not only is he not offended by the bailout, he’s not offended by the Obama administration’s dirigiste approach to restructuring GM and Chrysler.  He’s taking credit for it.

In the sense that he would not engage in Chicago-style cronyism, I think Romney would be better than Obama.  (There are a number of other ways in which Romney comes out on the long end of the personal- and professional-integrity comparison.)  But in terms of improper autonomy in the executive, and structural opportunities for cronyism, he would probably either set or confirm some very undesirable precedents while in office.  He needs an active, curmudgeonly Congress to thwart him, early and often.

Share Button

About the Author: J.E. Dyer is a retired US Naval intelligence officer who served around the world, afloat and ashore, from 1983 to 2004.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

Leave a comment (Select your commenting platform)

2 Responses to “J.E. Dyer: You’re Killing Me, Mitt”

  1. Gil Gilman says:

    More inconceivable stupidity on the part of the heads of both major parties…or is the stupidity theirs who believe that either of these media manipulators have anything of substance to offer the nation.

  2. Bankruptcy is simply reorganization ..It would get the trained union monkey off GMs back, so it could compete. Shame our "leaders" don't speak Capitalism any longer. Only Greek, it seems..

Comments are closed.

SocialTwist Tell-a-Friend

Loading Facebook Comments ...
Loading Disqus Comments ...
Current Top Story
Flyers ordered Jews to appear at a designated location in Ukraine, in Sept., 1941. The next day, the Jews lined up at the Babi Yar Ravine.
‘Jews Must Register’ Flyer in Ukraine an Echo of Babi Yar
Latest Indepth Stories
Haredim riot after draft-dodger is arrested.

The reporter simply reports the news, but it is greater to be inspired to better the situation.

Bitton-041814

The Big Bang theory marked the scientific community’s first sense of the universe having a beginning.

MK Moshe-Feiglin

Freeing convicted murderers returns the status of Jewish existence to something less than sanctified.

Dov Shurin

“The bigger they are the harder they fall” describes what God had in mind for Olmert.

We, soldiers of the IDF, who stand guard over the people and the land, fulfill the hopes of the millions of Jewish people across the generations who sought freedom.

How much is the human mind able to grasp of the Divine?

Jews have brought the baggage of the galut (exile) mentality to the modern state of Israel.

The Haggadah is an instruction manual on how to survive as strangers in strange lands.

It’s finally happened. New York Times public editor Margaret Sullivan reported on her blog that “many readers…wrote to object to an [April 2] article…on the breakdown in peace talks between Israel and the Palestinians,” claiming “[they] found the headline misleading and the article itself lacking in context.” Ms. Sullivan provided one such letter, quoted the […]

Nor did it seem relevant that according to widely circulated media reports, Rev. Sharpton was caught on an FBI surveillance video discussing possible drug sales with an FBI agent.

Jewish soldiers in the Polish forces often encountered anti-Semitic prejudice.

When the state was established, gedolim went to Ben-Gurion and asked him not to draft women and, later, yeshiva bachrim.

Perhaps worse than all the above is the acute lack of unity among Jews

At our seder we emulate the way it was celebrated in Temple times, as if the Temple still stood.

More Articles from J. E. Dyer
Senator Rafael Edward "Ted" Cruz (R-TX).

It would be so catastrophic to not increase the debt ceiling that Senators must have the option of avoiding the people’s scrutiny.

Rouhani-stranglovebombride

Iran could produce enough high-enriched uranium (HEU) for a first nuclear warhead in as little as two weeks.

We are in uncharted territory today. The answers for the GOP going forward may not be found in the events of the past.

Each and every permutation of artificial “fertility” will wind up in court at some point.

He gets that we can’t just sit still, paralyzed by bad press and Democratic talking points.

Obama’s supporters in the media (and no doubt in Hollywood, politics, and the academy) see a light at the end of this tunnel…

I’m skeptical that we have any intention of taking action against Syria – even punitive action, with no view to an outcome or end-state.

Liberty always – always – has to be deliberately established and hedged about with protections.

    Latest Poll

    Now that Kerry's "Peace Talks" are apparently over, are you...?







    View Results

    Loading ... Loading ...

Printed from: http://www.jewishpress.com/indepth/analysis/j-e-dyer/j-e-dyer-youre-killing-me-mitt/2012/05/10/

Scan this QR code to visit this page online: