CNSNews.com – Obama Administration’s Actions in Auto Bailout Added to Unemployment, Audit Says.
Shared By Pratt’s Pub
There is a quote from White House Press Secretary Robert Gibbs in response to this audit that kind of made laugh.“I think it’s important to look at the decision to put into bankruptcy and restructure both Chrysler and GM. I think it is safe to say without that decision that the president made, it is likely that neither of those two auto companies would exist today,” Gibbs said. “Because of the president’s actions to date, there are tens of thousands of auto jobs, auto manufacturing jobs, auto dealership jobs that exist and auto parts manufacturing jobs. “
Now, for the most part, wasn’t the purpose o bailing them out – supposedly – to avoid bankruptcy?
So I think his statement is correct….but his statement reflects “after the fact”.
Those companies should have filed bankruptcy and never taken the bailout…and it shouldn’t have been offered to them either.
Below is likely just an except of the original article. Please follow the link above to read the full article.
Washington (CNSNews.com) – The Obama administration’s policies in steering the auto bailout drove unemployment up, according to an audit by the Office of Special Inspector General for the Troubled Assets Relief Program (SIGTARP).
“At a time when the country was experiencing the worst economic downturn in generations and the government was asking its taxpayers to support a $787 billion stimulus package designed primarily to preserve jobs, Treasury made a series of decisions that may have substantially contributed to the accelerated shuttering of thousands of small businesses and thereby potentially adding tens of thousands of workers to the already lengthy unemployment rolls – all based on a theory and without sufficient consideration of the decisions’ broader economic impact,” the audit by SIGTARP Neil Barofsky stated.
“It is not at all clear that the greatly accelerated pace of the dealership closings during one of the most severe economic downturns in our Nation’s history was either necessary for the sake of the companies’ economic survival or prudent for the sake of the Nation’s economic recovery,” the audit added.
