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Government Motors: Socialism by executive fiat
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GM president, Charlie Wilson
“What’s good for the country is good for General Motors, and vice versa.” GM president Charles E. Wilson uttered these memorable words back in 1953, when he was asked during hearings before the Senate Armed Services Committee if as President Eisenhower’s new secretary of defense he could make a decision adverse to the interests of General Motors. Poor old Ike, in his farewell address, warned about “the military-industrial complex,” because he feared the agglomeration of power wielded by the military, the government, and industry would lead to socialism. If only he could see us now!
Monday, in a move that would make even the Fabian socialists do a double-take, President Obama announced the much-anticipated takeover of General Motors by the federal government. Obama defended the government’s takeover of GM as the auto maker enters Chapter 11 bankruptcy, saying the actions are part of a "viable, achievable plan that will give this iconic company a chance to rise again."
Under Obama’s plan, the government would own 60% of the new GM, but the president promised that auto executives "will call the shots and make the decisions about turning this company around." He said the government would make only “critical” decisions. Since the government already regulates such automotive areas as CAFÉ mileage standards, safety standards, pollution control standards, reformulated gasoline standards, and labor standards, it is hard to imagine that the president and congress will be able to resist the temptation to meddle in the management of GM.
When it comes time for GM to close down one manufacturing facility and then increase the production capacity of another plant, will powerful congressmen and senators, looking out for their constituents, want to have a “seat at the table” where factory locations are determined? Will a Democrat administration, politically beholden to the mighty UAW, be able to leave the “critical” labor/management decisions to the GM board of directors? Will Obama be able to referee the struggle between the oil companies and the environmental lobby? And, what if Americans decide they just don’t want to pay $40 grand for a hybrid car? Will GM continue making pickup trucks and SUVs? You already know the answers.
From a legal and constitutional standpoint, what President Obama did Monday was an executive fiat worthy of a third-world dictator. Ruling by decree, and without the prior approval of Congress or any legislation authorizing the act, Obama took over one of this country’s largest private corporations. Last December, Congress had specifically declined to approve a bailout of the auto industry, but President Bush went ahead and provided General Motors and Chrysler with $17.4 billion in taxpayer money. Bush took the money from the $700-billion Troubled Asset Relief Program (TARP) that was authorized specifically for purchasing assets from “financial institutions” such as banks, savings and loans, credit unions, brokerages and insurance companies, and illegally gave the money to GM.
Robert Reich, Clinton’s labor secretary, argued at the time that Bush’s move was unconstitutional because of the limits the Constitution places on the president’s power to spend public money. Specifically, the Constitution says, “No money shall be drawn from the treasury, but in consequence of appropriations made by law.”
The day after Obama announced his auto-bailout move in late March, CNSNews.com asked House Majority Leader Steny Hoyer where Obama derived the legal authority to do what he was doing. Hoyer candidly said he did not know. “The administration clearly believes it does have the authority to use some of the remaining TARP funds for the automobile industry,” Hoyer told Fred Lucas of CNSNews.com. “I don't know, technically. I would be kidding you to mouth some words on that, because I don't know technically where that authority would be,” said Hoyer. “But my own view is that if it is perceived they don't have that authority and it is perceived by the Congress they need to have that authority, the Congress would probably be willing to give that authority. But I don't know technically the answer to that question.”
When Obama started his phase of the auto bailout in March, he did not even consult with Sen. Chris Dodd (D-Conn.), chairman of the Senate Banking Committee, a committee that would be responsible for overseeing such legislation.
As part of his bailout plan, President Obama promised to guarantee the warranties on all new General Motors and Chrysler automobiles. When asked by CNSNews.com correspondent Fred Lucas whether the president would need legislative authority for that, House Financial Services Chairman Barney Frank said, “Do the words ‘I’m not very well informed on it’ have any meaning to you? Am I speaking a language you don’t understand?”
Historically, of course, GM has had a lot of experience accommodating socialism; in particular, National Socialism. An article in Wikipedia shows that, during World War II, GM had factories in Germany, and GM management from the top down had extensive connections with the Nazi Party, both on a business and personal level. GM’s Opel division produced Junkers-88 bombers, trucks, land mines and torpedo detonators for Nazi Germany. GM declared it had abandoned its Nazi subsidiary , and took a complete tax write-off because of which they received a tax reduction of "approximately $22.7 million" or about $285 billion in 21st-century money. After the War GM collected some $33 million in "war reparations" because the Allies had bombed its German facilities for which they have earlier declared complete tax write-off and received tax reduction.
American GM Vice President Graeme K. Howard was a committed Nazi, and expressed such views in his book, America and a New World Order. Adolf Hitler awarded GM boss James D. Mooney the Order of Merit of the Golden Eagle for his services to Nazi Germany. General Motors’ internal documents show a clear strategy to profit from their German military contracts even after Germany declared war against America.
Years later, GM reacquired Opel. Ironically, the demise of GM threatens its German subsidiary. An article in this week's Der Spiegel explains: "After months of hand-wringing and hard work, the German government, in conjunction with the Canadian auto-parts supplier Magna and its Russian partners, finally managed to find a way over the weekend to save Opel from being dragged down by its US parent General Motors. The price tag for German taxpayers was, at $2.12 billion, in bridge financing, not insignificant. But Berlin hopes that most of the 25,000 German jobs at Opel will be saved. All George Bush did to Angie Merkel was to give her a back rub!
You should mark this day down in your diary as the turning point at which America became a socialist country. Some day, when your grandchildren come to you (in their little Obama Youth uniforms) and ask about the olden days when America had more than one car company, you can tell them you remember what it was like, “back in the day.” But, be careful not to be too critical: the kids might have to report you.
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