A recent letter praised President Barack Obama's bailout of Chrysler and General Motors on the ground that it "saved jobs."
In fact, those jobs could have been saved without the bailout if the two companies had been allowed to go through normal bankruptcy proceedings.
In an expedited bankruptcy, trustees would have renegotiated the companies' onerous UAW contracts and taken other steps to make them viable. Meanwhile, car production would have continued uninterrupted. Not a single job would have been lost.
The problem was the president owed the UAW big time for helping elect him. So in a transparently political move, he stepped in and bailed out the companies -- not to save jobs, but to save the UAW's existing contracts from being renegotiated. Your tax dollars at work.
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