This is Part 2 of my series on the lies told by Democrats during the present administration’s term in office. As I said earlier, I’m not concerned with his broken campaign promises so much as I am with the dishonesty while in office.
In this post, I’ll mention a few more economic lies.
The Democrats insist that their “Stimulus” spending and their diversion of part of the TARP funding “saved the American automobile manufacturing industry,” the latter itself of questionable legality, given the legislated purpose of the TARP funding.
This is nonsense. In fact, only two car companies were at risk out of the seven major car companies that comprised, and still comprise, the American automobile manufacturing industry. Those seven? In no particular order, they are Ford, Honda, Hyundai, Toyota, Nissan, GM, and Chrysler. But wait, you say, Ford, GM, and Chrysler are the only American car manufacturers; the other four are foreign—and two of those three were threatened with bankruptcy. How is saving those two not saving the American automobile manufacturing industry?
The fact is, none of those seven car manufacturers manufacture anything in the US, including the American three. All seven of those companies do have major plant complexes in the US whose function is to produce cars for sale in the US. That production, though, is limited to final assembly. Every plant, for every car manufacturer, imports all of their cars’ parts—chassis, body panels, engines, batteries, even tires and wheels—from other countries: Mexico, Taiwan, the People’s Republic of China, India, wherever the costs of parts production is lowest. Thus, every automobile manufacturer in that American industry is on an even footing with every other auto manufacturer: they all do final assembly (and only final assembly), of imported parts, in the US, for sale to American customers. Those seven, not only the American three, are the American automobile manufacturing industry.
Now, of those two car companies that were saved, what was the nature of the rescue? Normal bankruptcy procedures were bypassed, and the Obama administration forced senior creditors to the back of the line—the funds went first to the auto manufacturing unions (vis., the United Auto Workers and the Canadian Auto Workers Unions), while those senior creditors wound up getting nothing. This stood bankruptcy law and order of precedence for creditors on their collective head.
And the bailout of the two American car companies went so well that one of them—Chrysler—is now an Italian car company.