Vice President Joe Biden is President Barack Obama’s biggest supporter. It’s his job, probably his only job, and it’s the easiest job in the world. He can lie with impunity and no one can blame him. In a speech he gave Thursday, Vice President Biden hailed the President Obama “as a man with ‘steel in his spine.’” And what steel-like policy that led to such superhero praise?
Biden praised Obama for rescuing US auto companies with an unpopular $80 billion bailout opposed by many Republicans, but which has nursed America’s iconic industry back to health.
And standing before union workers in the crucial swing state of Ohio, he personally slammed leading Republican candidate Mitt Romney for writing a 2008 New York Times article headlined “Let Detroit go bankrupt.” (Source)
It’s easy being a person with steel in his spine with other people’s money. President Obama actually took money from tax payers and gave it to a private company. In any other scenario this would be called theft. In a political context is called tyranny.
Any of us could be generous with someone else’s money. I could be considered the greatest philanthropist in the world if I could siphon off billions of dollars from some people so I could give it to other people.
In reality, President Obama is the “Man of Steal.” In addition to using taxpayer money, all the private investors in General Motors lost what they had invested in the company. In addition, dealerships across the country were forced to close.
To add insult to injury, the unions benefited from the infusion of taxpayer capital. Of course, this was designed to secure the union vote in November.
Vice President Biden told his partisan audience that the President’s decision as the right one, but when you look a little deeper, you begin to understand what is really going on:
But while the automakers are all posting strong results, taxpayers are still on the hook for billions of dollars. Taxpayers fell $1.3 billion short on the Chrysler bailout and are still waiting for $25.5 billion back on the GM deal. In total, the companies received about $60 billion between them.
And, particularly in the case of GM (GM, Fortune 500), it seems unlikely the taxpayer will be made whole anytime soon. Treasury holds 500 million shares of GM stock, those represent about one third of the company and if sold at today’s prices, they would be worth about $13 billion. (Source)
The infusion of stolen cash did not save GM. The real problems are still there. Letting GM “fail” would have brought the problems to the surface where they would have been dealt with in the light of day. Market decisions would have prevailed. Salaries would have been cut as well as pensions and other union perks.
These types of decisions were made by tens of thousands of businesses across America. They didn’t get a bailout. The “Man of Steal” did not come in to rescue them.