You Hate to Say We Told You So But…Obama Bailouts

You Hate to Say We Told You So But…Obama Bailouts

Liz Peeks discovers the nasty truth of the Obama auto bailouts -- they were a "Hefty Union Payoff": [media-credit name="NRTW Committee®" align="alignright" width="300"][/media-credit] In the second presidential debate, Mr. Obama attacked early on, saying, “Governor Romney said we should let Detroit go bankrupt.” Note to Obama fans: GM did go bankrupt – filing for Chapter 11 protection against its creditors on June 1, 2009. It’s what happened next that the president can take credit for – a handout of $49.5 billion in taxpayer money to GM, some $27 billion of which remains outstanding, and another $17 billion to its financial arm Ally Financial, which still owes $14.7 billion. In other words, Obama didn’t save General Motors; American taxpayers did, with an assist from the Federal Reserve. While liberals rant about the bailouts of Wall Street, it is worthwhile noting that of the $417 billion in TARP funds spent to stabilize the economy, only $65 billion has yet to be repaid – and more than half of that is owed by GM and Chrysler. The latest TARP report from the Congressional Budget Office says that the government invested nearly $80 billion in those two auto giants and that taxpayers are still on the hook for roughly $37 billion. In the same report, the CBO projects that handouts to Wall Street firms will ultimately net the government a cool $11 billion profit. They say the auto industry, on the other hand, will never pay back taxpayers. According to the congressional bean counters, $20 billion is gone for good.

California Workers Union Has Labor Issues UAW vs. SEIU

The Sacramento Bee reports on a messy labor dispute -- not between union activists and management but between union activists and more union activists: A messy fight between California's largest state employee union, SEIU Local 1000, and another union that has represented 160 of its staff has spilled into public view. As they battle for those workers, the United Auto Workers is calling Local 1000 a hypocritical union-buster. An official with the National Labor Relations Board says SEIU, as an employer, has engaged in "unfair labor practices." The local rejects the accusations. The fight dates back years to a split between Local 1000 and an umbrella organization, the California State Employees Association. SEIU represents about 95,000 employees, the largest of four affiliates in the CSEA. Other affiliates speak for state retirees, state university support staff and midlevel state supervisors. The four groups' interests often clashed. Still, for years they pooled their dues money and bargained with the UAW for staff contracts covering secretaries to senior attorneys. When Local 1000 left and gained financial independence, it raised a question: What did its new status mean to its relationship with the UAW? The union local concluded that it needed employees to say who they wanted to represent them.