It was a lie told in the critical state of Ohio in the final days of a close campaign — that Jeep was moving its U.S. production to China. It originated with a conservative blogger, who twisted an accurate news story into a falsehood. Then it picked up steam when the Drudge Report ran with it. Even though Jeep’s parent company gave a quick and clear denial, Mitt Romney repeated it and his campaign turned it into a TV ad.
And they stood by the claim, even as the media and the public expressed collective outrage against something so obviously false.
People often say that politicians don’t pay a price for deception, but this time was different: A flood of negative press coverage rained down on the Romney campaign, and he failed to turn the tide in Ohio, the most important state in the presidential election.
PolitiFact has selected Romney’s claim that Barack Obama “sold Chrysler to Italians who are going to build Jeeps in China” at the cost of American jobs as the 2012 Lie of the Year.
Fiat (FIA.MI) and its U.S. unit Chrysler expect to roll out at least 100,000 Jeeps in China when production starts in 2014 as they seek to catch up with rivals in the world’s biggest car market.
Output could double, the Italian carmaker’s Chief Executive Sergio Marchionne, without giving a precise timeframe.
Chrysler, in which Fiat has a 58.5 percent stake, said on Tuesday it had agreed to make Jeeps in China with Guangzhou Automobile Group (601238.SS).
[…]”We expect production of around 100,000 Jeeps per year which is expandable to 200,000,” Marchionne, who is also CEO of Chrysler, said on the sidelines of a conference, adding production could start in 18 months.
The Romney ad said: “Obama took GM and Chrysler into bankruptcy and sold Chrysler to Italians who are going to build Jeeps in China. Mitt Romney will fight for every American job.”
And the literal truth is that Fiat, an Italian car company, owns a 58.5% majority of Chrysler. And the literal truth is that Chrysler IS “going to build Jeeps in China” – exactly what Romney said. We now know that for a fact because it has been reported by Reuters. Jeep production is starting up in China, it is not being expanded in the United States. Politifact has exposed itself as a left-wing organization that is willing to lie in order to get their Democrat candidate elected.
What happens when you raise taxes on businesses and punish people for working hard and playing by the rules? Very simple. They leave and move to a place where they can keep more of what they earn. Obama likes to hear the sound of applause from those who depend on government for handouts and bailouts, but he is being applauded for spending other people’s money. Money he himself did not earn. Eventually, people get sick and tired of being abused by big-mouth politicians and they take their capital and move on. It’s the Democrat Party that causes jobs to be shipped overseas.
To start with the obvious, even though Obama denies that he will manage the companies, we have all learned by now that he has no problem doing the very thing he is denying. (In ordinary life this political artfulness is called lying). He fired one CEO, forced Chrysler to accept Fiat (WSJ.com 6/5/09), told GM that it cannot move its headquarters out of Detroit (WSJ.com 6/3/09), and may have ordered that whoever buys GM’s European auto maker Opel must agree not to export cars to the U.S.. (WSJ.com 6/1/09) These decisions were made in secret with no Congressional oversight, by a man with no training or experience of any kind in business, never mind the auto business. The companies will be run by politicians, who will make decisions for the benefit of political agendas rather than on sound business principles. The result will be that the auto companies and the union will not make the deep changes required to make the companies profitable, so we can anticipate many more cash infusions.
Gary Jason writes about how Obama is intervening in the free market to screw creditors and take care of his union supporters with taxpayer bailouts.
I will argue that the unprecedented action by the current administration in manipulating the bankruptcies of Chrysler and GM, and in effect nationalizing the companies, is egregiously unethical by every one of these major ethical perspectives. For this reason, I believe that this action makes it morally imperative for Americans to boycott these socialized companies.
… the Obama administration spent tens of billions in taxpayers’ dollars to take control of the companies and force the outcome it wanted. Obama, who received millions in contributions from the United Auto Workers union, has forced a settlement that will give UAW far more equity in the companies when they come out of bankruptcy than it was due compared to the secured debt holders.[i] Obama’s agents used threats and intimidation (calling holdout bondholders speculators and hedge funds at one point) to get the creditors to accept being shafted. (WSJ.com 5/11/09)The result is that the vast majority of the two companies will be almost clearly owned by the federal government and the UAW, and the UAW arguably controls the federal government.
The result is drenched in irony. The UAW was a major reason why the companies hit the wall, and now the UAW will be rewarded with major control and ownership. It is as if a rape victim were forced to marry her rapist. The result makes the crony capitalism we saw in Russia look clean by comparison; it, at least, was a kind of capitalism.
And what are the long-term consequences?
…To start with the obvious, even though Obama denies that he will manage the companies, we have all learned by now that he has no problem doing the very thing he is denying. (In ordinary life this political artfulness is called lying). He fired one CEO, forced Chrysler to accept Fiat (WSJ.com 6/5/09), told GM that it cannot move its headquarters out of Detroit (WSJ.com 6/3/09), and may have ordered that whoever buys GM’s European auto maker Opel must agree not to export cars to the U.S.. (WSJ.com 6/1/09) These decisions were made in secret with no Congressional oversight, by a man with no training or experience of any kind in business, never mind the auto business.
The companies will be run by politicians, who will make decisions for the benefit of political agendas rather than on sound business principles. The result will be that the auto companies and the union will not make the deep changes required to make the companies profitable, so we can anticipate many more cash infusions.
Worse yet, we can foresee that now that the UAW and feds have control of Chrysler and GM, they won’t stop there. Their natural instinct will be to achieve monopolistic control. The UAW has helped drive Chrysler and GM to the wall and is now co-owner with the government of most of the equity. They will likely next target Ford, to get equity ownership of it. Then look for the UAW and the administration it controls to attempt to force the employees of foreign auto makers in this country to join the UAW, or use environmental and other regulatory laws to put those companies out of business.
Obama and the Democrats are willing to use threats and intimidation to ram through their socialist policies. Here is a long list of unconstitutional interventions. (H/T 4Simpsons) He does not care about laws and rights – he wants power over your liberty. He wants to control your life.
The Road to Serfdom
For those of you who did not know before, the greatest economics book of the 20th century was Nobel-prize winning economic F.A. Hayek’s “The Road to Serfdom“, which is analyzes the history of socialism and fascism in Nazi Germany and Russia. This book is #1 on Human Events’ Top 10 books every Republican should read.
Human Events writes:
Friedrich Hayek (1899-1992) was an Austrian economist awarded the Nobel Prize in 1974. He defended capitalism and individual liberty against collectivism. In “The Road to Serfdom,” he describes how government planning of the economy leads to tyranny. President Reagan cited Hayek as one of his favorite economists. “To decentralize power is to reduce the absolute amount of power, and the competitive system is the only system designed to minimize the power exercised by man over man,” wrote Hayek. “Who can seriously doubt that the power which a millionaire, who may be my employer, has over me is very much less than that which the smallest bureaucrat possesses who wields the coercive power of the state and on whose discretion it depends how I am allowed to live and work?”
When Michele Bachmann stands up on the floor of the House and advocates against government intervention in the free market, she is literally standing between the American people and mass-murdering, rights-trampling, faith-destroying communism.
And by the way, Obama means to do the exact same thing with the health care and energy sectors.
Are we looking at the biggest political scandal since Watergate?
Big Dem Donor Group allowed to keep all 6 Chrysler dealerships open…. Local competitors eliminated by Obama’s task force!!
Earlier it was reported that the Obama Administration may have targeted GOP donors in deciding which Chrysler dealerships would have to close their doors.
Now there’s this… RLJ-McLarty-Landers is owned by three men.
One was the former Chief of Staff for President Clinton.
One is the founder of Black Entertainment Television and a huge Obama supporter.
All 6 of their Chrysler dealerships will remain open. And, get this… Their local competitors have been eliminated!