Posts Tagged ‘Mitt Romney’

The American Automotive Industry

January 22, 2012

I watched a segment on “CBS Sunday Morning” today. It was on the recovery of the American automotive industry since their bottoming out in 2009. In short, GM has regained its leadership position in worldwide auto sales.

The turnaround in the automotive industry is, in part, due to normal capitalistic economic forces. Being in a stronger fiscal position, Ford managed its recovery without government help. A significant part of the credit for the recovery of the automotive industry, most notably for General Motors, is due to the government decision to inject capital into the failing industry.

Philosophically, I share concerns with the Republican party about the direct involvement of the government in private industry. I don’t know where Obama stands on that philosophy, but based on other policy decisions, I suspect his view is similar to mine. However, in times of crisis, leaders make pragmatic decisions that are targeted to ameliorate real, urgent problems.

It turns out that the policy decisions of the Obama Administration, like most other policy decisions of this administration, turned out to be the correct one – one based on analysis and not ideology.

The Republicans continue to espouse their fundamentalist policy, even in the face of the facts. They would have let the industry die. [1] Umm, “creative destruction”, I think Mitt calls it. According to conservatives, government can’t create jobs. It appears, however, targeted government action can save jobs…

… more than 1,140,000 of them in 2009 and another 314,000 jobs in 2010.[2]

According to the Wall Street Journal – you know, part of the liberal media – reported that more than a million jobs were saved by the action taken by the Obama Administration. That’s the same administration referenced by current GOP candidates on the campaign trail as the “job killing Obama Administration.”

Mitt Romney claims that America needs a CEO to lead it. With the Obama Administration’s proven track record of success – this just being one of them – I think I will stick with the community organizer.

 

[1] http://pa-magazine.com/industry-news/gop-presidential-candidates-criticize-auto-bailout/

[2] http://blogs.wsj.com/deals/2010/11/17/gm-ipo-auto-bailout-saved-more-than-1-million-jobs-study-says/