The Department of Energy is awarding $54 million for energy projects that should help manufacturing companies be more energy efficient. If your immediate response is, “If these technologies are going to lower a business’s costs, why aren’t they investing their own money?” then you’re asking the right question.
~ Sure Let’s JUST reelect Obama
Bailed-out General Motors is receiving $2.7 million to “develop an integrated super-vacuum die casting process using a new magnesium alloy to achieve a 50% energy savings compared to the multi-piece, multi-step, stamping and joining process currently used to manufacture car doors.” If General Motors wants to partner with a national laboratory or a research university to invent a manufacturing process for car doors that achieves dramatic energy savings and reduces costs, that’s wonderful. Go for it. But use your own money.
Other’s being bailed out:
* Dow Chemical Company, a $9 million grant
* PolyPlus Battery Company is also receiving a $9 million handout
* Teledyne Scientific & Imaging (another ARPA-E recipient) Teledyne is benefiting from a $2.1 million DOE “investment”
and WHO is truly getting the cash?
Obama told the United Auto Workers (UAW) in February not to listen to critics of the auto bailout who said union members “made out like bandits—that saving the auto industry was just about paying back the unions.” “Really?” Obama said. “I mean, even by the standards of this town [Washington], that’s a load of you-know-what.”
~ Sure Let’s JUST reelect Obama
New research from Heritage labor economist James Sherk proves that it was, in fact, a load of truth.
The Treasury Department estimates that taxpayers will lose $23 billion on the auto bailout. Sherk and co-author Todd Zywicki find that none of these losses came from saving jobs, but instead went to prop up the compensation of some of the most highly paid workers inAmerica. They write:
We estimate that the Administration redistributed $26.5 billion more to the UAW than it would have received had it been treated as it usually would in bankruptcy proceedings. Taxpayers lost between $20 billion and $23 billion on the auto programs. Thus, the entire loss to the taxpayers from the auto bailout comes from the funds diverted to the UAW.
The Obama campaign is touting the bailout in Michigan this week, crowing about saved-or-created jobs. What the bailout actually saved was the UAW’s heavily padded compensation packages; what it created was a massive taxpayer loss.
The UAW was a significant factor in the automakers’ decline: It had raised Detroit’s labor costs 50 percent to 80 percent above other automakers, such as Toyotaand Nissan. In 2006, General Motors paid its unionized workers $70.51 an hour in wages and benefits. Chrysler paid $75.86 an hour. Added to mistakes by management, these labor costs were a major reason the automakers went bankrupt.
However, through the bailout, the Obama Administration insulated the UAW from most of the sacrifices unions usually make in a bankruptcy—at taxpayer expense.
Even Stephen Rattner, President Obama’s “car czar,” has admitted that “We should have asked the UAW to do a bit more. We did not ask any UAW member to take a cut in their pay.”
* Instead, more than $26 billion went out the door and into the UAW’s pockets. Let’s put that in perspective: The amount of the subsidy given directly to the UAW was bigger than the budget of the entire State Department. It was bigger than allU.S. foreign aid spending. It was 50 percent more than NASA’s budget.
None of that money kept factories running. Instead, it sustained the above-average compensation of members of an influential union, sparing them from most of the sacrifices typically made in bankruptcy—a bankruptcy they contributed to. President Obama engaged in special interest spending at its worst.
The Administration did not bail out GM and Chrysler. It bailed out the United Auto Workers.
~ Sure Let’s JUST reelect Obama ~ JP