Opinion

GM and Chrysler bleed jobs while Obama claims victory

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Sam Foster
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      Sam Foster

      Sam Foster is a contributor for the blog Left Coast Rebel and founder of the Upstate Political Report, which covers NY congressional races for the 2010 elections. Sam also publishes in the American Thinker.

No, it wasn’t the biggest whopper Obama’s ever told.  Last time I’ve checked, Obama has done nothing about sea levels.  It wasn’t his first embellishment about job creation during his “summer of recovery” tour.  All week Obama claimed to have saved GM and Chrysler?  Given the flagrantly un-American way in which Obama seized the two companies, it’s a tall-tale worth taking a moment to investigate.

Last Friday, Obama stepped off the plane in Michigan with a speech in hand and a government report chalked full of propaganda and creative numbers.  Obama proclaimed to a throng of autoworkers:

And we came up with a third way.  What we said was, if you’re willing to take the tough and painful steps necessary to make yourselves more competitive; if you’re willing to pull together workers, management, suppliers, dealers, everybody to remake yourself for changing times then we’ll stand by you and we’ll invest in your future.  Our strategy was to get this company and this industry back on its feet, taking a hands-off approach, saying you guys know the business, we don’t.  We’re going to give you a chance, but we do know you’ve got to change…

…Last year, many thought this industry would keep losing jobs, as it had for the better part of the past decade.  Today, U.S. automakers have added 55,000 jobs since last June, the strongest job growth in more than 10 years in the auto industry.  This plant just hired a new shift of 1,100 workers last week.

The first lie was an obvious one.  According to Obama’s own report, the statistic detailing the creation of 55,000 at US automakers was taken from the BLS, which shows that the increase in jobs over the year included all automaker manufacturing jobs in the US, not just US companies.  That means Toyota jobs, Hundai jobs, Ford jobs or any other job creation from an automaker so long as they were residing in America.  Did Obama nationalize Ford and foreign automakers as well?

Now that we’ve established that the entire industry created 55,000 American jobs over the last year, let’s compare government job creation in the auto industry (GM and Chrysler) against those of the privately owned companies (everyone else).  According to GM press releases, in April the company had added 7,500 jobs since the restructuring and 400 new volt jobs in July.  That’s nearly 8,000 jobs!  Now compare to the 10,000 jobs GM lost due to Obama’s forced bankruptcy restructuring.  Obama still has 2,000 jobs to go to break even.

Chrysler has a similar story.  One of the five plants Chrysler closed during its restructuring sent 1,200 to the unemployment line, while Obama touts the company’s single plant opening of 1,100 new jobs at his recent visit.  I haven’t even broached the subject of dealership job losses.

The truth about job creation in the auto industry points to a far different narrative than the one Obama demagogues.  This is really a story about how private businesses, despite their hardships, created new jobs while overcoming the negative job growth perpetuated by government owned companies.  This is in fact a real life allegory of conservative, free-market beliefs and one in which we still wait a happy ending.

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  • jstan442

    sharing this with face book and twitter

  • http://www.facebook.com/people/Left-Coast-Rebel/100000811020974 Left Coast Rebel

    Great article and information – why hasn’t the press pointed out the fact that these numbers don’t add up? This needs to go viral.