April 05, 2009

JOBLESS RATE HITS NEW HIGH

President Barack Obama and the Congress won’t utter the dreaded word “recession” – but the U.S. Department of Labor says the number of claims for unemployment compensation hit a high of 669,000 laid-off workers last March.

Not to worry! Mr. Obama has given the American automobile corporations – principally General Motors and Chrysler -- a “limited period of time to work with creditors, unions and other stakeholders to fundamentally restructure themselves in a way that would justify an investment of additional tax dollars!”

“During this period, they must produce plans that would give the American people confidence in their long-term prospects for success.”

Obama backed up this command by “firing” the General Motors chairman and ordering Chrysler to form a partnership with Italian automaker Fiat within 30 days.

Such arbitrary, hands-on government management of American and foreign companies reeks of fundamental communism.

The President appointed Edward Montgomery, formerly a deputy Labor Department secretary, to oversee the private companies.

KING CANUTE’S REBUKE

We are reminded of the sea-shore rebuke by King Canute of England, Denmark and Norway from 994 to 1035 A.D.

When a fawning courtier asserted: “The king is so powerful he can command obedience of the sea,” Canute ordered his entire court to join him at the sea shore.

The king placed his throne at water’s edge and commanded the tide to stand still.  When his feet got wet, the courtiers professed astonishment.

“You see,” Canute thundered, “some things are beyond my reach!”

For such wisdom, King Canute was buried at Westminster Abby when he also failed to stay the hand of death.

In the quaint custom of today’s philosophers, Canute’s seashore revelation has been reduced to a bumper sticker (here sanitized) “Grunge Happens!”

AUTO TAX BREAKS

A major concession by Obama is a tax break on automobile purchases from February 16 to the end of 2009.

Also, “incentives” would be established to persuade owners of old cars to trade them in for energy-efficient vehicles and government-backed warrants that they have “nothing to fear” by buying a car from General Motors or Chrysler.

The echo of President Franklin D. Roosevelt’s assurance -- during the Great Depression of the 1930s -- is not happenstance. “There is nothing to fear, but fear itself.”

PURCHASE INCENTIVE

Mr. Obama says he will work with Congress to make the purchase-incentive plan effective at once.  He asserts automakers are “not moving fast enough.”

General Motors chairman, G. Richard Wagoner, Jr., met with White House and Congressional leaders Friday to iron out details of government intervention.

“In the course of that meeting, they requested that I ‘step aside’ as CEO of GM, and so I have,” said Wagoner.

In doing so, Wagoner praised the executives succeeding him and hailed G.M. employees worldwide. “GM is a great company with a storied history.  Ignore the doubters because I know it is also a company with a great future.”

PLAN DEADLINE

General Motors already has cast off thousands of employees since the downturn began.  Many will not be recalled.

The company has 60 days to draw up a new plan acceptable to a Democrat president, a Democrat House of Representatives and a Democrat Senate.  All are pledged to exempt 60 percent of wage earners from income taxes.

RISE AGAIN

President Obama declared he was “absolutely confident that GM can rise again --providing the company undergoes fundamental restructuring.”

He asserted:

“This restructuring – as painful as it will be in the short-term -- will mark not the end but a new beginning for a great American industry.

“Therefore, we are offering G.M. and Chrysler a limited period of time to work with creditors, unions and other stakeholders to fundamentally restructure in a way that would justify an investment of additional tax dollars.”

“This restructuring, as painful as it will be in the short-term, will mark not the end but a new beginning for a great American industry.

“I am absolutely confident that GM can rise again, providing it undergoes a fundamental restructuring.  The U.S. government has no intention of running GM.”

FRIGHTENING WORDS

Excuse us if we shudder.  We recall the nine most frightening words in the English language -- defined years ago by U.S. President Ronald Reagan:

“Hello.  I’m here from the government to help you!”

By Lindsey Wilger Williams, retired newspaper publisher and syndicated columnist