A relatively minor program captured the headlines over this past week end and promises to continue to arouse partisan political passion through this week until the final disposition of the ” cash for clunkers ” program is determined. The White House is very much in favor of continuing the program which has burned through the initial one billion dollars that was allocated to the automobile purchasing stimulus.
The program provides for a $4,500. trade in on older automobiles. The program was so well received by consumers that the program quickly ran out of money. Last week the House quickly approved an additional two billion dollars for the program and the Senate is debating the issue this week prior to the beginning of the August recess.
With an economy in recession and the majority of voters deciding that the stimulus plan provided by Barack Obama under the guise of the American Recovery Act has been a dismal failure, it is no wonder that the White House is promoting the “success” of “cash for clunkers”. It is most likely the Senate will pass an appropriation to continue this program since the auto industry is a Government preferred industry as demonstrated by the bail outs provided by both the Bush and Obama administrations.
Ceo4aday believes that programs that stimulate the purchase of durable goods are welcome and truly provide a stimulus to the economy but do not believe they should be discriminatory. We have long advocated a program that is not discriminatory that would put dollars in the hands of consumers through a federal voucher with an expiration date that would expire within a specific period of time. The program would consist of a spend it or lose it clause and the monies distributed to tax payers should be allocated on a proportionate basis per actual taxes paid.
Funds from the American Recovery Act could be reallocated from their current entitlement and union subsidization program to fund real stimulus. Under this plan all tax payers would receive in effect a rebate on prior taxes paid which would provide an economic stimulus across all sectors of the economy as opposed to being sector specific like “cash for clunkers”. It would also be class inclusive as opposed to previous attempts at consumer stimulus that omit those at the top rungs of the economy.
We recognize that the likelihood of reallocating funds from the American Recovery Act and converting them to real stimulus dollars is unlikely. The Obama administration and the members of Congress that rushed through this partisan $787 Billion bill during the first weeks of the new progressive administration would be reluctant to alter its current structure in any way that would divert funds away from the numerous liberal programs that were included in the bill to satisfy the various special interest groups of the left.
Obama Administration “Strong Arming”: To Enhance UAW Position
Posted in business, economy, politics, tagged Age of Austerity, American Recovery and Reinvestment Plan, auto bail out, Barack Obama, business, CEO, class war, commentary, congress, Democrats, economy, finance, main street, news, politics, Progressive Fascism, recession, Republicans, wall street, White House on May 6, 2009| 1 Comment »
We are fascinated by the alleged strong arm tactics the Obama administration allegedly introduced into their negotiations with senior debt holders of the Chrysler Corporation. A representative of the administration, car czar Steve Rattner, allegedly threatened an official representing Chrysler creditors. As reported on Fox news, Thomas Lauria, an attorney at White & Case, one of this nation’s most prestigious law firms, Rattner suggested to an official of Perella Weinberg Partners, an investment bank, that the Obama administration would destroy the firms reputation through the press, if it failed to comply with the administrations wishes.
The Obama administration has denied the allegations by Lauria. Ceo4adayfinds the allegation by Mister Lauria, to be credible based on our belief, that the arrogance of this President and his administration may be unmatched in the history of our nation. We do not believe that the Global Practice Head of the Financial Restructuring and Insolvency Group at White & Case, with 130 lawyers in 20 nations reporting to him, would jeopardize his reputation or the reputation of one of the world’s premier law firms by lying or misrepresenting the event as reported.
The Obama administration has a singular goal with respect to the Chrysler bankruptcy. Their goal is to protect and where possible expand the interest of the United Auto Workers. The UAW, represents the largest special interest group in America, labor unions, which peeked in the 1950’s, when 36% of Americans were union members and have been declining as a percentage of our national labor force to approximately 10% toda . However, the influence the labor unions have purchased with Barack Obama and the Democrat party, rather than decline, has expanded at a disproportionate ratio. The alliance between the progressive left and labor has formed the nucleus which funded the Obama campaign and provided the agenda for the inexperienced Barack Obama.
The Obama administration is intent upon restoring the American labor movement to the place of prominence it held in its golden era. Barack Obama in the past week indicated that the loss of manufacturing jobs in this country would not be an issue if WalMart would pay employees $25 per hour. A mission no doubt that he will continue to work toward in conjuction with his union supporters.
We should not be surprised by the allegation of threats by the Obama administration to further their agenda. The administration since the inauguration has been focused on control. We have a President, who though he states he does not want to run the auto companies or the banks, relishes the role of shareholder in chief as he seeks to transform the auto industry to green favored electric cars produced by union owned companies.
The tactics deployed by the Obama administration in their desire to protect the UAW are nothing less than the execution of an administration agenda that equates to progressive fascism wrapped in the pageantry of the Presidency.
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