When the U.S. auto industry (except Ford) was experiencing huge financial problems, the Obama administration along with help with some GOP members, decided to bailout the auto industry. In return for the bailout, the auto companies (except Ford) decided they didn't need as many auto dealers and so they tore up contracts and got rid of a bunch dealerships, even if they were profitable.
From Michelle Malkin: Under the guise of “saving” the American auto industry through a bipartisan, taxpayer-funded bailout now topping $80 billion, President Obama’s know-nothing bureaucrats pushed the car companies to eliminate thousands of jobs — with unjustified haste using dubious economic models.
Obama ordered the bailout recipients to “prove” their long-term viability by submitting restructuring plans. But White House and Treasury Department “experts” rejected the auto manufacturers’ proposals, citing the too-slow pace of their plans to reduce their dealership networks over a period of five years. Once the auto companies modified those plans to meet government-backed timelines, the money flowed.
But Neil Barofsky, the federal watchdog overseeing the bank-auto-insurance-all-purpose bailout fund, found that the White House auto industry task force and the Treasury Department “Auto Team” had no basis for ordering the expedited car dealership closure schedules. They relied on a single consulting firm’s internal report recommending that the U.S. companies adopt foreign auto industry models to increase profits — a recommendation hotly disputed by auto experts who questioned whether foreign practices could be applied to domestic American dealership networks.
Team Obama’s government auto mechanics also ignored the economic impact of rushing those closures. According to Barofsky, they discounted counter-testimony from industry officials that “closing dealerships in an environment already disrupted by the recession could result in an even greater crisis in sales.”....
In sum, the inspector general found: “(A)t a time when the country was experiencing the worst economic downturn in generations and the government was asking its taxpayers to support a $787 billion stimulus package designed primarily to preserve jobs, Treasury made a series of decisions that may have substantially contributed to the accelerated shuttering of thousands of small businesses and thereby potentially adding tens of thousands of workers to the already lengthy unemployment rolls — all based on a theory and without sufficient consideration of the decisions’ broader economic impact.”
http://michellemalkin.com/2010/07/21/dealergate-social-justice-the-obama-job-killing-machine/
In the Las Vegas Valley, we lost many dealerships due to the bailout. We lost jobs in sales, mechanics, secretaries, managers, car washers, car detailers. parts managers and workers and more. Make no mistake, Harry Reid, Dina Titus, Shelly Berkley and President Obama are directly responsible for these job losses. And it's not just a couple of jobs, the number of jobs run in the hundreds or more.
When will we hear an apology from Reid, Titus, Berkley and Obama apologize for all the jobs they destroyed? Probably never. But when you live at the Ritz-Carlton in Washington D.C., or never had a real job in your life (Titus) you really don't know what the real world is like.
Gaetz withdraws.
1 hour ago
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