Jim DeMint on ‘GM’s Political Bankruptcy’

I’ve spoken on several occasions with people on Jim DeMint’s staff–though, as much as I’d like, never to the South Carolina senator himself–but my existence on some sort of mailing list is absolutely news to me. Nevertheless, I received a piece of outreach correspondence a few minutes ago from the senator’s office, and thought it would pass it along:

June 10, 2009

Dear Friend,

The bankruptcy filing of General Motors last week didn’t have to be this way.

GM could have – and as many of us argued at the time, should have – declared bankruptcy last December. Our bankruptcy laws exist to give troubled companies a chance to restructure their business models and get out from under crushing debts.

But now, after we lost $50 billion in a misguided bailout scheme, the bankruptcy GM is entering is not even real bankruptcy. It’s a political bankruptcy, brokered by the Obama administration to reward the very people who helped to destroy the company in the first place.

Under the agreement, investors and creditors were wiped out, while the federal government, the Canadian government, and the labor bosses will own 90 percent of the new company.

Going forward, GM won’t be able to make the tough business decisions necessary to get back to profitability. They will be second-guessed and overruled by politicians in Washington. Meanwhile, as GM becomes a government program, car companies that are succeeding will have to compete at an unfair disadvantage – all because the labor bosses funneled millions of dollars to Democrat candidates over the last few election cycles.

It isn’t fair, and it needs to stop.

Broken companies and greedy labor bosses shouldn’t be rewarded for their failures. Washington needs to get out of this quagmire before politicians do to our auto industry what they’ve already done to our financial system.

A free auto market will help revive our industrial economy, and give GM its best chance to succeed. As always, freedom will work…if we let it.

Sincerely,

Jim DeMint
United States Senator

He called me a “friend.” How wonderful! If I were on Sen. Harry Reid’s e-mail list, I wonder if the majority leader would address me as “Dear Backstabbing, Critical Prick.” I would hope so. That would just about make my day.

All kidding aside, I like Sen. DeMint, and look forward to this time next year, when I will be one of his newest constituents. At a time when we need it most, DeMint is a conservative through and through, a man who understands the fiscal weaknesses of the Democrats and the need for responsible leadership while not forgetting, in the process, the social and societal aspects of the conservative movement. And he gets it. He gets why GM was played as a political pawn, when a growth economy facilitated by a hands-off federal government could have seen the venerable American automaker prospering instead of floundering. He gets that this is all about a power grab, cleverly disguised as caring and empathy.

Time and time again, as this adminstration and this Congress has been borrowing and spending and borrowing some more, DeMint has been on top of it. His closing sentence here, that “freedom will work . . . if we let it,” should be a rallying cry for a GOP marked by a renewed advocacy for a Jeffersonian approach to governance.

After being in the news nearly every day during the first three or four months of Barack Obama’s presidency, DeMint has been fairly quiet in recent weeks. Normally, I’d attribute it to the glorious weather down in the Palmetto State–I, for one, love the beaches on Sullivan’s Island and Isle of Palms–but in DeMint’s case, perhaps his Republican colleagues are starting to catch on, and catch up.

Let’s hope so.

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Comments

  1. Lilly says:

    "perhaps his Republican colleagues are starting to catch on, and catch up."

    Lets hope and that they become vocal about it!!!
    Off Topic- Did anyone listen to Rush today? He brought up the birth certificate issue in a joke! I was shocked, then giggled!

  2. Gail B says:

    I wrote to the CEOs of both GM and Chrysler on the same day in February that Nancy Pelosi did. I asked them please not to accept the bailout money.

    Makes me wonder now if they wish they had thumbed their noses at the O-regime back then.

    This is sad.

  3. Anonymous says:

    I am convinced that someone has orchestrated a default on the Democrats dime and that the Dems are still too ignorant of economics to realize that they have been had.

    This isn't going well for anyone. A few bones for the union but with the union once again managing itself, the workers are now back to square one with a need to protect themselves from terrible management.

    The economic lesson for our time is that junky credit matters even more than junky products.

    Junky credit brought America down. Additional political scams like propping up failed businesses will just lead to more spectacular failures.

    Obama is long on political scams but short on solutions. How long will the Dems allow this guy to hide behind an infantile hope for a better tomorrow?

  4. OBAMA TRAUMA says:

    I caught the Rush joke…. thats the way to do it, bring it into topic slowly and let the public grasp onto it bit by bit…..

  5. Rix says:

    A political speech, letter or article related to UAW and GM that doesn't involve the word "jail" will not have my attention these days. Those on the right side should get into habit of publicly calling a spade a spade – even if it doen't lead to immediate prosecution for bribery and corruption, it would give me a shade of hope that it eventually might.

  6. Anonymous says:

    Jeff, I was very upset with the SCOTUS ruling last night. Do you think that it just wasn't the right case and maybe someone else will try again? How could the SC just ignore the Constitution? This is very scary.

  7. Anonymous says:

    It's too bad that DeMint is off the radar for most folks because I think he is one of the best ones up there. I voted for him in your poll. I was disappointed to see unprincipled Newt get so many. He had his chance and blew it. The man is a hypocrite!

  8. Jan says:

    Well…this is distribution of wealth at it's finest!

  9. Bobby K. says:

    i like the repubs idea of turning the stock over to the tax payers who actually paid taxes last year, atleast we would get some of the money back the people, and keep the gov out of the car business. can't wait for 2010

  10. Anonymous says:

    Rightfully so, Bernie Madoff is going to jail for his Ponzi scheme. When are we going to wake up and realize that GM and Chrysler were just Ponzi schemes to the max. Can't wait until the next contract negotiations between the UAW and the AUW owners. Put them all in jail.

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