George Bush went ahead and gave the money to the automobile makers. He was determined to save the industry believing that the economy could not stand the collapse of this industry. It is the government's job to ensure the solvency of these companies.
My opinion is that Bush is a misguided fool on this matter. He is just delaying the inevitable. The United States auto makers are going to fail unless a radical shift in business practices is undertaken. Now, there is not much incentive for the management to change anything. At the same time, the unions will resist making any concessions of pay. In the end, we will be in the same situation again.
Bush was lamenting this week on his legacy. This is a dangerous thing to be doing when there is a major crisis on the table. Naturally, Bush does not want to be known as the President that let the automakers fold. This certainly went into his decision. Bush secured his legacy at the expense of America.
One of the contingencies of the deal is that a workable model needs to be in place by the end of March. If not, all the money given needs returning. That makes total sense. These companies come to the government because they do not have the funds to get through the next 30 days but they will be able to return billions at the end of the first quarter. Does Bush think they are going to put it in the bank and earn 1% interest. Of course not; they will blow through that money like water. They will be broke in the next 90 days.
So what is Bush's legacy? That he achieved a state of socialism within a 120 days period, thus wiping out 230 years of democracy. The fact that he went against the wishes of the elected officials in Congress shows that Bush is a rogue dictator. Everyone who resisted this argument by the left should now be convinced that Bush cared little for the legalities of our society. He made a decision that might help his legacy but will screw the American people. Thanks George, you putz.
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