America, You Asked For It!

Political News and Commentary from the Right

Just like we thought…

Now that Republicans in the Senate have drawn a line in the sand and killed the “American Socialist Experiment Act” (the auto bailout), GM has suddenly found a way to save money.  After all the whining and begging and flying to D.C. in private jets in an effort to extort money from the American taxpayer so they could continue to run their companies into the ground for just a little longer, we suddenly discover there is a plan C that we weren’t told about until it became obvious that Americans are going to keep their hands on their wallets this time around.

GM has decided to temporarily close plants across North America and cut output by a third in order to cut costs and preserve capital.  Wait a minute.  Weren’t they telling us earlier this week that without an immediate bailout they’d be completely shut down by New Years?  Didn’t it sound like the Democrats in Washington and the White House (they may as well be Democrats) were predicting something approaching the Apocalypse if the purse strings weren’t loosened NOW?

Here’s how the auto company execs played out their hand:

1.  CEOs said unless Congress approves $34 billion in aid, the U.S. can look forward to becoming a 3rd world nation. 

2.  No?  Okay, since that didn’t work $25 billion will prevent imminent collapse of the U.S. economy. 

3. Still too much?  Well then, maybe $15 billion will be enough. 

4. What do you mean you won’t give us $15 billion?  Okay, $14 billion will have to do. 

5. You won’t even give us a measly $14 billion?  That’s not fair!  We’re going to pick up our toys and quit playing.  That’ll show you and the world as you know it will end.  Nobody will have a job, nobody will have any money, the country will fall into chaos, the DOW will go to $0, and Christmas will be canceled!

6.  You still won’t give us ANYTHING?!?!?!? We’re all going to die!!!!!!!!!!!!!!!!!!!!

7.  Well then, okay.  We’ll see what we can do to cut costs and keep as many jobs filled as we can so that when this economy rebounds we’ll still be in a position to restart and ramp up production to take advantage of it.  It would have been easier if you’d given us the money, but now we have to play by the rules and do what we probably would have done in the first place if you hadn’t just given the banks all that money.

Okay, I exaggerated a little there, but you get the point.  Basically they were saying disaster awaited if they weren’t supplied with immediate cash and the amount needed kept being adjusted downward in an effort to find a point where they could just get something.

For those of you who believed the Democratic and UAW scare tactics and were convinced that Socialism was the only thing that could save us from impending doom, ask yourself “Who told me there were other options?”  “Who repeatedly said there were alternative paths involving restructuring the companies to make them competitive in today’s market?

I’ll tell you who.  It was the conservative “Gang of 6” along with conservative political pundits and activists on cable TV shows and the internet!  Groups like Rebuild the Party and Top Conservatives on Twitter marshalled their forces to rally behind the true conservative Senators to keep your kids and ours from inheriting many more billions of dollars in debt that one day will have to be repaid.

While Harry Reid (D-NV) and Nancy Pelosi (D-CA) tried to scare you into believing economic death would await you behind every door, behind every bush, and around every corner if we didn’t immediately implement full-blown Socialism, it was the conservatives who sounded the call of responsibility, accountability, patience, calm, and courage to deal with the impending crisis.

And suddenly, when it became obvious to these panhandling CEOs that nobody was going to fill their tin cups on the corner, we see a plan to carry them through this difficult time.  A real plan that appears to have been devised by someone with a degree in business.  Imagine that. 

It doesn’t take a rocket scientist to realize a company can’t sustain a cash burn rate of $1+ billion per month.  If your company is paying out that much more cash than it’s taking in, drastic changes to the business model should come quickly.  Yet GM knew for months this crisis was approaching and did nothing to prevent it!  Why would they when they thought if things got bad you and I would fill their coffers to keep them afloat?  It reminds me of a spoiled rich kid who spends all his money partying. Then, month after month has to come to his parents for money to pay the bills.

Know that we’re not deluding ourselves.  Hard times are yet to come–for the auto companies and for our economy at large.  But now we can confront the challenges the way they should be confronted, with restructuring and reorganization that will eventually result in a leaner, more productive business model that can once again thrive and be competitive in today’s market.

So all who believed it was imperative to pass this bill, to use taxpayer money in a vain effort to sustain an unsustainable business model, to fully embrace Socialism–an economic model that history has proven time and again cannot compete with free market Capitalism, think about who it was that spoke the truth throughout the hype.

It wasn’t the Reids and Pelosis, but the “Gang of 6” and all the conservative activists standing behind them.

December 12, 2008 - Posted by | Bailout | , , , , , , , , , , , , , , , ,

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