(c) 2012 Earl L. Haehl Permission is given to use this article in whole as long as credit is given. Book rights are reserved.
There are two major candidates, one of whom will be elected in December, with different aspirations. Mitt Romney wants very much to be President. To that end he will promise anything he needs to promise and will have a tough time following through on those promises if elected. This is not intended as an endorsement of Mr Romney.
Barack Obama, on the other hand, is President. He made all those promises four years ago, and to achieve some he ignored others. He wants very much to transform America. It worked for FDR—four times. It was only after World War II ended and Truman lifted wartime restrictions that the nation began to recover from the recession of 1931.
So let us look at the transformation so far. The “bailout” of the auto industry involved a takeover of two companies in order to preserve the union welfare state of those companies and give the government a “stakeholder” place in decision making. The bankruptcy law was violated and preferred stockholders, many of them public employee and teacher pension funds, were left holding the bag to assure government preferred stakeholders—aka the UAW. When franchises were closed, the fact that some had paid serious money for their franchises was not a consideration. Apparently volume of sales was not either.
Another aspect of the transformation of the auto industry is the new green technology. An example of this is the new Chevy Volt. GM loses $49,000 on every one that leaves the factory in order to reach a price point of $40,000. In addition the taxpayers pick up another $7,500 in a tax credit to bring the price down to a level where people will buy the vehicle.
The genius of the American auto industry has been its ability to produce vehicles that capture the consumer. And scuttle those that do not. They did not have to deal with the fiat that “you will build this vehicle” mentality of the Combloc. The Edsel was a failure—Ford ditched it and followed with the Mustang. Despite Ralph Nader the Corvair was extremely popular—there is a 61 driving around town that is in better shape than Ralph.
Ford escaped the “bailout” by having shepherded its resources to where it would not have to take a reorganization. Not to worry. New EPA CAFE standards took care of the the popular Crown Victoria. The company will survive, but a solid, powerful vehicle has been removed from production. Its replacement, the AWD Taurus-SHO, is unlikely to last as many miles and has a higher price tag to begin with. And with Executive Order 13603 in place, Obama has “authority” to seize industries in the name of national security.
The “bank bailout” saved some companies that should have been allowed a quiet demise. The real estate bubble which brought it down was caused largely by federal requirements to “open up” the housing market. To avoid pressure by compliance agencies, the banks loosened credit requirements to the point that massive groups of people were approved for loans they could never pay. There were people in certain counties in Colorado who were refinancing every eighteen months. There was a joke in the consumer community about using Visa to pay Mastercard—eventually the house of cards (so to speak) tumbles.
As the Congress set about remedying the financial situations there were companies that should have gone under, but were “too big to fail” so they were propped up. The regulations bill that the President signed had not been read by its sponsors. Retiring Sen Chris Dodd said it would take a couple years to find out what was in it.
So we come to the quick fix comprehensive health care reform. Like the financial services bill it was rushed and rammed through without time for reading or reflection. So much for the promise of transparency. What is in it—other than a tax that is unlawful because it originated in the Senate or else in the mind of an intimidated Chief Justice—is not clear. What is not in it is: cost control, frivolous lawsuit control, and cost increase control. Without these, the temporary nature of the bill is apparent—the costs will crash the government.
Then we come to the assertion that the President has authority to order the assassination of anyone he deems a threat to the American people. In asserting this power—which was not asserted in the Divine Right of Kings—the President places himself with banana republic dictators as well as Vlad the Impaler, Caligula, Stalin and Rasputin.
The President has also issued executive orders giving himself authority Congress and the Constitution will not. He tires of waiting for Congress. He has always, from his own statements, been frustrated by the Constitution’s negative liberties. He would like to change this Constitution out for one that mandates redistribution. And he clearly is looking for three more appointments to the Supreme Court in order to achieve this.
Mr Obama recently remarked that is is nearly impossible to effect change from the inside. Perhaps the community organizer needs to get back outside.