• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Barack Obama, General Motors, and Your Health Care

    Announcing the nationalization of General Motors this Monday, President Barack Obama insisted, “What we are not doing — what I have no interest in doing — is running GM. … When a difficult decision has to be made like where to open a new plant or what type of new car to make, the new GM, not the US government will make that decision.” But just hours earlier, President Obama was on the phone telling Detroit Mayor Dave Bing he would not allow GM to move its headquarters out of the city. And now today, the Senate is set “to grill” GM CEO Fritz Henderson and Chrysler President Jim Press over their plans to slash more than 2,400 dealerships.

    What does this have to do with your health care? Everything.

    Just as the Obama administration has been swearing up and down they will not interfere with how GM and Chrysler are run, they have also been claiming that a government run health insurance plan will not interfere with the health care you currently have. Both claims are extremely dubious. Heritage fellow Bob Moffit explains:

    Understand that a new government-run health plan would be a wholly owned subsidiary of the Congress. Lawmakers would create it, and, at least initially, would fund it. To create a “level playing field” for its plan and private health plans against which it would compete, Congress would have to do much more than what Schumer is prescribing. No special advantages, right?

    But on a level playing field, some businesses fail. So would the new government health plan be allowed to become insolvent? Will it be allowed to fail? Or will it become another candidate for an eternal taxpayer bailout?

    Posted in Economics [slideshow_deploy]

    17 Responses to Barack Obama, General Motors, and Your Health Care

    1. Pingback: Barack Obama, General Motors, and Your Health Care » The Foundry | My Health and Lifestyle

    2. Pingback: Barack Obama, General Motors, and Your Health Care » The Foundry | Health Articles

    3. Thomas, Anchorage, A says:

      Someone emailed a question to America's Newsroom this morning asking why the automakers want to yank franchises from dealers, since they don't cost the automakers anything.

      The problem is the dealers do cost the manufacturers money, in terms of warranty support, technical support (both over the phone and in person), advertising/marketing, etc., though those costs translate into jobs at the corporate level. One of Chrysler's big problems with new vehicles is the saturation they have both in terms of dealers and inventory. For a time they had over half a million vehicles in storage, just waiting for a demand. Push manufacturing at its best/worst.

    4. Barb -mn says:

      Get out of the way, Mr. President. You've extended yourself beyond your worth. You've blocked the doors of opportunity and now have destroyed opportunities. You don't have a clear thinking mind. You have no sense of logic or sense at all. You have no voice of reason or practicality. You need to do the job of the presidency honestly efficiently, (the opposite of your faith), or be a man and step down.

    5. Pingback: Barack Obama, General Motors, and Your Health Care » The Foundry | Health

    6. Charles-Odessa, Texa says:

      Obama and his henchmen are not smart enough to leave Americans and their businesses alone. They must screw up every facet of our core values and put us back into caves under a world government.

    7. Greg, Vail, AZ says:

      Every time Obama opens his mouth he makes the case that Democrats and liberals have no business running the country. Liberal ideology such as Obama follows is self destructive. It's end game is nobody working and nothing being produced. Think about it. We will be living like the plains Indians of old. Just what the environmentalists want. 2010 is just around the corner. We need to vote out all the left leaning dems and moderate republicans. Vote for anyone that will support term limits. No argument made can over come the benefits of keeping congress and the Senate as powerless as possible.

    8. Normca says:

      Costing the factory money: One car; one warranty and technical support. It makes no difference if one dealer in X city sells the unit or two different dealers in two cities sell two cars. It is evident why some dealers need to be closed though. The importance, it seems to me is the process by which dealers for slated closing were selected. Having watched the hearings, the GM and [Fiat] Chrysler reps at first said no documentation was available to show the logic of the selection to close or retain dealers. Two dealers were next to the factory reps in the hearings and both claimed [anyway] they were profitable. Two weeks notice, big inventories including extra cars the dealers took to help the factory, at the factory requests, parts inventories, major repair equipment and most important, long tenured, qualified – trained mechanic staff all are being hung around dealers heads. Their notice to close did not provide a reason for the closing. And the Chrysler factory said the plan includes combining all factory brands under one roof, which seems to make sense. One of the two reported profitable dealer reps said his dealership has all brands now. This is a total Obama sham and I hope to see it exposed sometime. What the result was of the hearings is the senators requested from the factories, documentation to provide reasoning to close one dealer and leave another open. And the factories committed to buy the inventory at other than fire sale prices. Apparently the dealers to stay open offerrered fire sale prices to buy inventory of their peers. Give me a hat, shake it up and pick a winner ! Or dealers who donated to the out of power political party more than the party in power, will close. This would be criminal, if proven. Maybe the media can expose this !!

    9. Jeff, Rehoboth says:

      The liberal Utopian vision is insidious. Much like drugs, the allure of euphoria sucks in the unwitting, but what follows is the collapse of spirit and liberty as you become the slave to it.

      Social Security — Well intentioned, circumstances of the baby boom have rendered it a Ponzi Scheme. Deemed "too hard" to tackle in Obama's foolish working group exercise of political leaders.

      Medicare — Well intentioned, also now Ponzi Scheme for the same reason, and growing to be vastly more expensive than Social Security. No Government solution on the horizon.

      Universal Health Care — The crown jewel of the liberal vision — The final nail in the US economic coffin. Worse that the previous programs however, they will tear down a health care system that is the envy of the world in the process. The Hippocratic oath does not apply to Government. They will make things worse.

      Make no mistake. The level of Government confiscation of individual wealth is going to have to increase dramatically to pay for this and the rest of the irresponsible Obama agenda. We, along with our children and many generations to follow, will indeed be slaves to the crushing debt of these program; working to pay for this ill-fated Utopia.

      Further, now that half of Americans have zero financial stake in the cost of running the Federal Government, why should they oppose any of this destructive spending?

      To paraphrase China, It would be helpful to see some arithmetic, Mr. President.

    10. Loretta , Colorado says:

      Obama administration obviously believes every piece of property and every banking account is available for the needs they are creating! Somehow they must be stopped! More than ever before on government assistance and increasing.

      The government is bankrupt but ignoring it. This is madness or planned destruction! OMG healthcare government run! PLEASE!

    11. Lynn B. DeSpain says:

      First, the Auto Manufacturers. When Obama agreed to bailout GM and Chryler, both agreed to one hundred percent Presidential Control. As most seem unaware, in Chryler's bankruptcy, those forced out of 'Dealership' forfieted the Dealership property, building, et al, even though those things were not owned by Chryler Corporation but Privately. Next, The Dearships were forced to sell all inventory as best they could, with the 'Public' realizing that no dealerships were within a reasonable distance for Warantee! Finally, under Obama's creative 'New' Bankruptcy laws relating to 'Dealerships' The private owners of the Dealerships have to make up the difference between what the inventory could be sold for and what the "So called Costs" were to Chrysler. This means selling their homes, liquidating their saving, everything. Some of these Dealerships had been in Business for Generations. The ones shut down were NOT the small ones losing money, they were the larger ones in Big Cities, making money. Why? Obama wants small imported cars in America! Controlled by our Government! At the cost of Free Enterprize!

      As far a "Level Playing Field", the only 'Field our President is interested in is his own. Thank God for Ford! The only Company keeping America from Totalitarianism!

      Those with Insurance provided by the Employers will now be taxed on that insurance as an income. Those who purchase their own Private Insurance will no longer be able to deduct premiums. But those who go on the Government Dole and receive Socialized Medical Care, Gee, no taxes, and no worries about deductions. Were's the 'Level Playing Field' in that!

      Hozro

    12. Brad S,, Detroit, MI says:

      A very interesting perspective that somebody sent me last week.

      A DODGE DEALER’S PERSPECTIVE

      May 22, 2009

      As a loyal and successful Dodge Dealer for over 22 years it is not a big surprise that given the current economy, the marketplace may not support the number of Dealers presently representing Chrysler Corporation products. However, the methodology Chrysler Corporation is attempting to utilize to reduce its Dealer body is unlawful, unconstitutional, un-American and grossly unfair. What Chrysler Corporation is attempting to do, under President Obama’s direction, is to use the United States Bankruptcy Court in New York to terminate 789 Dodge Chrysler Dealer Franchise Agreements, arbitrarily, capriciously, and without due process of law. The so called “criteria” establishing which Dealers will be terminated is seriously flawed and “non-transparent”. Many of the Dodge/Chrysler Dealers are profitable, employ many quality employees, support their communities and provide the necessary competition to insure that customers receive competitively priced vehicles. By reducing the number of automobile Dealers you are certain to reduce competition and the undesired effect will be the increased prices that Americans will ultimately pay for the price of a car.

      Additionally, Chrysler is proposing to take away my franchise without compensating me for its value. I have invested millions of dollars to acquire the Dodge franchise, the Dealership facility and the real estate.

      Chrysler proposes to transfer my franchise and all the goodwill I created over a 22 year span to a Chrysler competitor, across the street, free of charge, without compensating me one cent.

      This is occurring despite my Tamaroff Dodge Dealership continuously achieving high sales, high customer satisfaction index ratings, a 5-star Dealer status (Chrysler’s highest achievement award), and over 22 years having built a loyal and satisfied customer base. It is like “Crystal Night” in Nazi Germany in 1938, but instead of the Nazis seizing “private property” without due process of law and compensation, Chrysler and President Obama are using the power of a Federal Bankruptcy Judge to trample and run roughshod over the rights of 789 Dodge/Chrysler Dealers. By using the power and governmental action of the Federal Bankruptcy Court, Chrysler and President Obama are purposely avoiding all state laws and some federal laws which were specifically designed by lawmakers to protect the Dealer from the overwhelming power of the manufacturer. Furthermore, where is the due process for an unconstitutional taking of my franchise rights without just compensation?

      My fellow Americans, I am a WWII veteran and former P.O.W. who risked my life for our country to defeat National Socialism and Hitler’s tyrannical Nazi regime. Never in my entire 82 years (50 years as an auto dealer and mechanical engineer) would I have anticipated the President of the United States and an appointed Federal Bankruptcy Judge trampling on my rights, seizing my property and potentially causing me to go into bankruptcy and in the process acting as instruments of FACISM.

      President Obama, is this the change you promised the American people? Where is the transparency you promised on the campaign trial?

      To add insult to injury, Chrysler Corporation, at this date, will not buy back any of the Dealers’ new car inventory; inventory they pushed on the Dealers in the last 90 days threatening them that if they did not purchase the cars from Chrysler they would be remembered come “termination day.”

      Finally, the worst point about this “Executive Branch sponsored taking” is the painful effect of laying off our people, many of whom have been with our company since the beginning. They are like family. It is like throwing your kids out on the street, with no job, no money, and no health care.

      It is a heartbreaking experience for the employees, their families and for me.

      Recently, President Obama made a public statement that he is standing by the Dealers . . .

      Yes, he is standing on their graves.

      Where is his leadership and foresight as he rushes to accomplish his agenda at the expense of 789 Dodge/Chrysler Dealers and their employees?

      President Obama and the Obama administration are directly responsible for orchestrating this ill conceived plan.

      My fellow Americans, WAKE UP before you lose your livelihood and private property without just compensation.

      If the Executive Branch and Judicial Branch can successfully complete this illegal seizure of property and transfer of wealth from one Dealer to another, then is any American’s private property safe from unlawful government seizure?

      As the great Prime Minister Margaret Thatcher once said,

      “The problem with socialism is sooner or later you run out of the other guy’s money.”

      God Bless our Constitution, our Bill of Rights, and Our Great Country.

      Marvin M. Tamaroff

    13. Whicket Williams Kin says:

      It is very important to listen to what is said only to keep record of how different what is said is from what is done.Pay very close attention to what is done. You will not find this in the main stream media. That is listed under what is said, to be noted only for the difference between actions [facts] and words[lies]

    14. Lois Pallone, Pauma says:

      I realize if we do nothing to be heard and do not act, any of these attrocities will and can befall us all…But I feel so helpless to know to whom to complain or even expect anything to be done on such actions taking place in the United States. It appears our Congress is blind, deaf and dumb…

      Please direct us as to how we can help.

    15. Mabel, Indiana says:

      I'm so sorry about the heartless treatment you're

      experiencing. And how many times is your situation, or a similar one, multiplied across the country? What a disaster!

      Remember how candidate Obama spoke of his conversations with individuals and how caring he wanted to appear?

      Thanks for sharing your heartbreaking story!

    16. Carolyn Troiano, Che says:

      My name is Carolyn Troiano, and I need help going after Obama for a major Free Speech violation. He is violating my First Amendment right to free speech by trying to prevent me from voicing my opinions on a tax-deductible contribution supported internet site.

      If you go to My.BarackObama.com, a website funded by tax-deductible money, you will see how they’ve set up tools and other resources to help people push the Obama agenda forward – the topic du jour is healthcare reform. People are told to create and attend events that are supportive of Obama. This is how they stole the election.

      So to turn the tables, I went on the site and created my own event, a “GIGANTIC TEA PARTY” up on Long Island in my hometown of Merrick.

      I set this up as a “Take Back Our America” event, and spread the WEALTH (Watch Every American Learn about Healthcare reform) like the Tea Parties of late, and included posted a call for all like-minded citizens to join me. All of the information is at my website:

      http://www.examiner.com/x-13822-Chesterfield-Coun

      The Obama webmaster responded by email saying my words were disrespectful, and that they had taken my event off the website.

      The warning stated that this was a one-time warning, and if I did this again, I would have my access to the website taken away.

      So what’s a girl to do? Create another event. This time it’s in Chesterfield, VA, this coming Saturday, June 20th, at my home or in spirit with me, and I made sure there is room for 1 billion people, in case those disgruntled Iranian voters want to revolt and join our cause too.

      I led the charge to taking back America with a simple statement to the President –

      “Mr. Obama, tear down that firewall!”

      That’s my motto, and I’m taking this as far as I possibly can. Ronald Reagan must be turning over in his grave!

      I’m seeking your help to give some visibility to this fight and let the Obama dictatorship know we will not stand idly by while our own tax dollars continue to be squandered on his Socialist agenda.

      So let me know if you can help, and if you have any suggestions for ramping this up and getting all Americans to understand what’s going on here. Most have no clue.

      Thanks for your time and attention!

      Regards,

      Carolyn (McKillop) Troiano

      13613 Blue Heron Circle

      Chesterfield, VA 23838

      804-590-0055 (H)

      804-647-9946

      wtroiano@verizon.net

      politicat@verizon.net

    17. Pingback: The Hill’s Blog Briefing Room » MIDDAY ROUNDUP

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×