So our Administration is worried about jobs. Or at least they would have us believe that. Let’s look at the reality.
The Obama administration recently said that the car bailout saved 1,000,000 jobs. How many jobs were killed in the process? By demanding that Saturn and Pontiac be ended it is estimated that at least 120,000 jobs were destroyed. As a practical matter, all the 1,000,000 jobs would not have gone away. If the various divisions of General Motors had been sold or spun off let’s estimate that ½ half of the jobs would have survived and ALL of the pension liabilities would have been left behind in a proper bankruptcy process and would have required no bailout money.
Had we not bailed out GM, and allowed the bankruptcy process to work as designed, it is likely that 500,000 jobs would have survived out of the 1,000,000 and it is likely that the 120,000 from Pontiac and Saturn would have survived so that is a net loss of 380,000 jobs and no bailout money and no bailout of GMAC and no bailout of the pension plans that will eventually occur. So let’s say that ultimately the total bailout cost $120 Billion. That is about $316,000 per job saved. That is $120 Billion that could have been spent on creating new jobs and encouraging investment in
Then we have the Healthcare legislation that passed recently. In a story in June of 2010 the family owned White Castle Restaurants indicated that the cost of healthcare may put them out of business. This one family owned business represents 10,000 jobs. How many others are just like them?
Following Healthcare there is the problem with the threatened Cap N Trade legislation. In this Hannity piece from Obama’s time as a candidate for President, it is obvious that if he gets his version of the legislation passed it will kill many American jobs (http://www.youtube.com/watch?v=9wzNUZVv0A0&feature=player_embedded ). President Obama admits that the cost of electricity would skyrocket and we would bankrupt coal powered plants.
Next is the effort to thwart Congress in the immigration legislation. This article (http://www.washingtontimes.com/news/2010/jul/29/memo-outlines-backdoor-amnesty-plan-for-obama ) in the Washington Times indicates that there are active efforts to by-pass congress to create an Amnesty program for all who are here illegally. What does this do to trust in our Government and the business atmosphere?
Finally, out of nowhere a moratorium on Gulf Oil Drilling appears from the administration. In this article from the Huffington Post (http://www.huffingtonpost.com/2010/06/21/gulf-oil-spill-job-losses_n_619238.html ) it is estimated that 1,000,000 jobs will be lost over 5 years.
It is unfortunate that the policies of this administration and the underhanded manner in which it conducts business will force unemployment to reach higher levels and there will not be a recovery for many years to come. We at www.savingpontiac.org have relentlessly encouraged the Administration to give