Watching the president chest thump about Government Cars telegraphs the Democrats’ November campaign.
Believe it or not they are going to run on the takeover of GM –with the 50 billion tax infusion infusion for stock, followed by the complete screwing of the bond holders and thousands of dealers in order to save their UAW allies– as an example of what can be done when the government picks winners and losers according to its political favorites.
The takeover of GM, whether or not an IPO arrives nicely timed for the fall voting, remains a bright line for many voters, the sort of massive government jam down that repels rather than enthuses. The president can keep traipsing up to Detroit to declare victory just as Joe Biden keeps declaring the stimulus a massive success, but neither “initiative” has any more credibility than when they were begun in 2009.
It is a testament to the deep unpopularity of Obamacare that the president has to campaign on the bailout of GM as his great achievement.