Selling a Lie

Generally in our country, an idea has to be sold to the masses if it is ultimately succeed.  So politicians pound away at their agenda hoping to persuade the masses that it is true.  The old saying is that if you say it enough, you say it loudly, it becomes so.

Current example:  The democrats at their convention continually (and loudly) said that Obama  "Saved the auto industry".  Of course, this is not so, but if you say it enough....  it become so. 

So let's dissect this.  This is important to the democrats because Ohio and Michigan (big unionized car producing states) are currently in play in the election.  Jobs are key and those states are important.

Now to the argument; "Obama Saved the auto industry".

First of all, the auto industry was not in danger of going away.  If there was no governmental intervention, they could have gone thru bankruptcy, shed their unsustainable contracts  (with unions and others) so they could complete long term in this  new world.

Obama saved the union jobs and indeed preserved the industry for now.  But he "saved" it in a way that it cannot long stand in this competitive world.  They still have their labor contracts on compensation and benefits that will not work in today's world  To do so he shredded the constitution by violating the rule of law. Bond holders were thrown under the bus.  Law ignored.  We are at a point where we should get a report from our governments, local and state, on what laws they will and will not enforce!!!!

So Obama did preserve the industry with the help of billions of dollars of debt, ignoring laws and indeed it may work long enough to get reelected, the real objective.  But a restructuring is necessary through bankruptcy or other to build a business that thrives long term, not just until the next election.

But will it save the industry?  No.  Restructuring is needed to do that and we kicked the can down the road on that on.

How many real problems are kicked down the road  by this administration and congress? You can think Medicare, Social Security, borrowing 40 cents of every dollar spent by the government and on an on. It is going to be interesting to see how this finally works out!