President Obama has reportedly asked for the head of General Motors to step down before anymore taxpayer money is given to GM. It is surprising that anyone would think that President Obama would not be tough on the automotive industry. The sad thing is that almost every pundit is shocked by this policy. Obama has taken his lumps over the last four weeks for the financial collapse that he inherited from the previous administration and the Congress that he was a member of. It is no surprise to me that he is being very careful in his first direct involvement in giving out public money to a private industry that has underperformed over the past thirty years.
Simply put, President Obama has already lost political capital because of the decisions made last year. Imagine if GM was to get taxpayer money, and then pay a bonus to their CEO, the voting backlash in 2010 would make 1994 seem like a blip on the political radar. Obama is not about to risk losing his advantage in Congress over this issue. If the automotive industry wants to put its’ hand out for money, it is going to have to play the game under Obama’s terms.
Copyright 2009 The Moderate Voice