Being as many people simply don’t have the time or necessarily the inclination to look up boring financial information and statistics, I figured I’d take the time to prove a very bold lie by the Obama administration and Obama himself in a short essay. I don’t use the term “lie” in politics often, but the misinformation is so blatant there can be no other conclusion.
Recently, Obama said in a campaign speech in Pueblo, CO: “I believe in American workers, I believe in this American industry, and now the American auto industry has come roaring back. Now I want to do the same thing with manufacturing jobs, not just in the auto industry, but in every industry.” First of all, Obama is openly declaring the intent to commit potentially trillions of additional public dollars to “save” private business, which is belief in nothing but himself. There are countless political consequences inherent to this authoritarian policy. Suffice it to say that the mere fact the GM CEO had to step down in order to receive bailouts and GM was ordered to be acquired by FIAT demonstrates the unspeakably broad power this policy generates for the federal government. Government has no business running business.
Still, this is about Obama’s lie, so let’s get to the point and review the actual facts surrounding the apparently amazing success of the bailouts to support a limitless expansion of them. First, Detroit’s unemployment rate is currently at 17.8% after a recent decline from 18.8% and it is expected to rise again due to more city employment layoffs. Already, Obama’s claims are suspicious, but the entire city was negatively affected by the auto industry decline, so city-wide unemployment may not be a fair measure of success and Obama did specifically say “auto industry”. A look at the auto industry’s recovery shows a dramatically different picture from Obama’s lie. According to truth-out.org and iBisWorld the net auto jobs recovered (hardly “created” or “saved” since the jobs were lost) since the beginning of the recession is less than half. In addition, according to the U.S. Bureau of Labor and Statistics the average hourly rate for an auto worker DECLINED to $21.56 in June 2012 from $22.33 in June 2008 at the peak of the recession. The BLS also reports that benefits paid out by the auto industry has declined. Some might sensibly argue that such declines were necessary to correct a bloated compensation package, but that is not what Obama is selling and since the auto industry was already facing such cutbacks why did we need billions to “save” two major players in the industry that ultimately went bankrupt anyway? It’s a lie.
To add insult to injury, GM still…STILL has not paid back its loan from the government. STILL!!! The 500 million shares of GM our brilliant administration purchased at $54 per share is currently worth less than half.
So, where is this recovery Obama keeps bragging about? It doesn’t exist. It’s a lie that has cost this country more debt than all presidents combined accrued before Obama such that it now a national debt that exceeds our GDP for the first time in our history (despite Obama’s promise to cut the deficit in half) and declined our credit rating for the first time in history and shaken the world’s confidence in the dollar for the first time in history and caused over 8% unemployment for the longest period since the Great Depression (despite Obama’s promise to prevent unemployment from even reaching 8%) and on and on and on.
Come to think of it, Obama has a lot of accomplishments, but few that are worth even the empty promise of hope.