Deciphering a snippet of the State of the Union address
Friday, February 10th, 2012Never one to miss an opportunity, President Barack Obama offered his perception of the truth in his recent State of the Union address.
The president didn’t lie, he simply omitted some important facts that would have undermined his broad claims of success in a particularly high profile area.
Let’s use the auto industry as an example. Here’s what he said about the auto industry followed by what he “forgot” to say.
He said on the day I took office, our auto industry was on the verge of collapse. We got workers and automakers to settle their differences. We got the industry to retool and restructure. Today, General Motors is back on top as the world’s number one automaker. Chrysler has grown faster in the U.S. than any major car company. Ford is investing billions in U.S. plants and factories. And together, the entire industry added nearly 160,000 jobs.
He forgot to mention that the GM bailout process was initiated under President George W. Bush, and the success at Ford Motor Company was accomplished without any government action; the company didn’t take any government assistance. Yes, some jobs were saved, but overall the auto industry lost in excess of 200,000 workers. He also omitted the cost of the bailout to the American taxpayer. Considering the total cost of the national investment, the government has to sell its shares at $53 each to break even. GM stock is currently trading at around $25 a share, leaving the U.S. taxpayers $14 billion in this financial abyss.
Interesting how politicians can take a seemingly straightforward topic and spin it into something entirely different…
