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Monday, August 16, 2010

GM Plant in Mexico to Receive $500 Million

General Motors (GM), or as many refer to it, Government Motors, because we, the taxpayer, own 60% of the onetime auto giant, is investing $500 million dollars in a Mexican auto plant to build a new mystery vehicle and eight cylinder engines.

I don’t know about you, but I find this rather disturbing considering our country is facing “the worst economic crisis since the great depression” (I think I could recite THAT sentence in my friggin sleep!); we’re at 9.5% unemployment; and all we hear from the Left is how the Republicans have ruined the economy with trickledown economics, tax cuts and how they’ve sent all the jobs over-seas. Hmm, I guess it’s okay that we send hundreds of millions of tax payer dollars AND jobs straight over the border though, huh?

I mean GM only closed 14 plants and 13 warehouses in 2009 leaving 20,000 people unemployed. This Mexican plant employs 11,000 workers and with this new influx of cash it will hire 390 new workers. I’m sure there are 11,390 people unemployed in the United States who would LOVE to have a job right about now!

Where is the outrage? Where is the outcry? Queue the crickets because the silence is deafening. The Left is notorious for their rage over anything and everything that Bush, or anyone on the Right, has done, real or imagined, but let Obama do something, even take over an American car company then send half a billion dollars to another country when we NEED it right HERE and you hear NOTHING. The hypocrisy is astounding.

That Mexican plant, and any other foreign GM plant, should be shut down—YESTERDAY and reopened here in America where it can employee LEGAL AMERICANS, because it is OWNED by United States taxpayers. A privately owned company can do whatever it wants as it has its own money, but when taxpayer money is involved it should then do what is RIGHT for the taxpayer.

I know I’m wasting my time writing about this, but when I see such a horrific injustice, I just can’t help myself. I believe in doing what’s RIGHT and it angers me when I see such inappropriate actions and by our OWN government no less! It’s actions like THIS that make me wonder how anyone could ever think government is more capable than the average person. Those in government are NOT Gods. They are flesh and blood humans, with failings and frailties like so many others and THAT is why I don’t trust them to run my life, our car companies, our banks, student loans, and our health care. I don’t have blind faith that human beings are without fault and with total power they won’t abuse it. It’s just too tempting to people with less moral character and Washington has proven time and again that they have LESS moral character than the average person.

To emerge with one’s dignity unscathed after encountering temptation’s call is a feat many will flaunt but few will actually achieve …


  1. Nice find.

    Of course the mediots won't report this, they'll only report that GM made a $1.3B profit last quarter and that they are going public again.

  2. I left comment on your Rational Nation post Pamela.

    Could you provide the links to legitimate news sources on this? All I found were right leaning bloggers talking about ot.

  3. Well, the first link in the post is to an Agence France-Presse story, though it doesn't give much information.

    There are actually some valid questions here once one hacks one's way through the thicket of leftist-bashing. If the government is a majority or major shareholder in GM, why is it not using that influence to consolidate manufacturing capacity and jobs back into the US, or at least making sure that new investment goes here? (Never mind that a lot of right-wing bloggers would find grounds to condemn such "interference" -- it would be the right thing to do.) Is this a case of some low-level functionary dropping the ball, or did higher-ups in the government know about it?

    More to the point, of course, is whether this is an isolated case or a symptom of a broader policy. The Bush administration did nothing to discourage US companies from moving jobs overseas, but I would expect a Democratic administration to take a much more active role in pressing companies to keep jobs at home. Are they doing so?

  4. excellent find Pam..Limbaugh said: this country does not have to accept this "new normal", we do not have to accept the infiltration of this country, we can turn things around beginning at the ballot box..how true is that !!!

  5. The Big 3 auto companies have plants all over Mexico and have had for years - just as American ranchers/planters have moved their operations south of the border. Wages are less.

  6. Pamela, I share your outrage over GM’s investment in a components factory based in Mexico. Yes, I too saw this article several weeks ago, and the same thoughts came to mind: More jobs outsourced … this time at taxpayer expense. It is the same kind of post-TARP insensitivity and idiocy when Wall Street banksters awarded themselves bonuses … also at taxpayer expense. However, this should not be turned into a partisan issue, and there are many reasons why.

    Consider this: If Ford Motor Company is allowed to outsource because they didn’t receive bailout funds, then why constrain GM’s market competitiveness by imposing conditions that give Ford a competitive advantage while subjecting GM to a handicap. Furthermore, bailout funds are not a gift but a loan. Perhaps as early as this year, GM will initiate an IPO that effectively raises new capital and pays back the government WITH INTEREST.

    Although it is a failure of government oversight (meaning the government should have anticipated abuses in advance and imposed conditions in exchange for bailout funds), please do not overlook the fundamental ethical and moral lapses that are rampant throughout corporate culture today. As tnlib says, everyone does it without conscience or forethought. But that is beside the point.

    I too wrote on the subject in this post, THE BOOK OF JOBS – Revised Global Edition. Since the 1960s, our country has pursued open trade policies that have always worked to our detriment. Trade imbalances were never addressed; protectionists abuses by trade partners were overlooked; the playing field was never level; and we have given away the store so many times, it has become standard operating procedure.

    And consider this: The largest 1,000 corporations in America dominate our economy and our government, which means they dictate our trading policies and every aspect of commercial activity in America. In other words, corporate America likes things just as they are. Remember: Corporate America authored the current situation. Whether their actions hurt the country or not, or resulted in wage stagnation, or tilted the lion’s share of economy activity in their favor, they got exactly what they wanted … and there is little you or I can do except make noise.

    What we need is a national economic policy, one that corrects trade imbalances, levels the playing field, invests in infrastructure and new technologies that won’t be outsourced, and one that protects your privacy by prohibiting your financial and medical records from being processed in overseas call centers.

    Regrettably, the GOP will not consider any of these proposals. In their view, if corporate America won’t accept it, the GOP won’t accept it. If corporate America says 'no,' then the sloganeers will call it ‘socialism.’ Meanwhile our trade partners DO HAVE national economic policies, and we don’t. It tells you where things are heading.

    Sorry, but these are the facts.

  7. Is that where the stimulus money went that created all those jobs Obama is talking about?

  8. MRG, if you have something of substance to say, then say it. I don't respond to sarcasm and snark.

  9. A minor detail: According to the linked story, the figure of 11,000 jobs refers to all four GM plants in Mexico combined, not to the one plant which is getting the new investment.

  10. I’m well aware that all 3 car companies have plants all over the world and have done this for years (Also know that many companies outsource) But considering that GM is now owned by us taxpayers by 60% and the UAW by 19% the right thing to do would be ensure that the jobs stay in America—regardless of how much money they save in Mexico (average worker makes $26 a day I believe)—until our country gets back on its feet or they DO pay back the loan with interest. Once they are self-sufficient again they can do whatever they want, although we could discuss outsourcing as an entity by itself as it has affected our country in so many ways and the nation seems to be quite divided on the issue.

    I didn’t realize the 11,000 was a combination of all 4 Mexican plants, Infidel, but even so, my position stands—close them ALL down and reopen the American plants—11,390 unemployed Americans can use the jobs.

  11. I don't have a problem with protectionism Pamela. But I also understand the macroeconomics of our global community.

    CHina took over as the number 2 economy in the world and there are a billion Chinese. Just as countries allied militarily, countries will ally economically. In the future we will have no choice but to try and ally.

    India is still backwards in many ways but as China has done, so will India. We need to keep India on our side.

    Brazil has a growing economy. Mexico is growing and on our border. Investing in the Mexican plant may well have been a political as well as economic decision. I don't like it either Pamela. But trading with the world is necessary. We are not an island unto ourselves. Of the old "Guns and butter" saying, it's the butter that is the most important now.

  12. I guess that Mr. Obama is the Godfather of America.

  13. I'm with Most Reverend, and wasn't aware that octo was a moderator here, but acts like everyone is always addressing him.

    Jobs will move back to this country when unions realize the error of their ways and stop this 'living wage' crap and 100% retirement with tons of 'benefits'.

  14. Which union gets 100% benefits BP?

    And why don't you want people to earn a living wage?

    And why don't think promises made should be kept?

    You're a mean person Bluepitbull. But I forgive you.

  15. And you're a big phony instigator, but I forgive you.

    Living wage is a buzzword like tolerance, hate speech and anything else your kind can use to pervert the public's perception of reality.

    Keep smoking whatever it is you smoke. Perhaps it will be subsidized by the end of the week as your soon to be gone liberal-progressive-communist-socialist house and senate can ram through to damage the country more.

    Face it, you're a dying breed. And to top it off, your humor is getting old.

  16. The reality is that you're a selfish person. You care not about the promises made to others as long as your benefits aren't BPB.

    That's not an attempt at humor. That's an accurate observation of an asshole who only loves the America that provides his benefits and screws the rest of us.

  17. LOL!! My so-called 'benefits' are due to military service, so stop. Your comparison assumes that no one else gets anything and I think that you and I can agree that is fallacious.

    That is the only trick you have in your bag when dealing with me which is typical of liberal morons. Trying to silence me by discrediting me. I pay for my healthcare, I paid into my GI Bill, and I get a meager, meager pension for serving 20+ years in the service.

    Thank you for calling me an asshole and interjecting yourself into my opinion. Shows how right I am about y'all.

  18. So are you willing to take a cut in your "meager" pension benefits the way you call for others to take in theirs BPB?

    That's my point dude. You won't because as I said, you are selfish. And an asshole.

    A promise is a promise. You were promised benefits and as far as I'm concerned I'll gladly see my taxes go up to keep those promises.

    Employees pay into pension funds that get raided by their corporations and your answer is "tough shit." If that happened to you then you would scrfeam the loudest.

  19. And how is that my problem? Stop pretending to be a humanitarian you goofy bastard and if you're so, so concerned...donate your money to their pensions.

    Save your money. There. Don't live beyond your means is a phrase lost on Americans these days. Your beloved leaders run around and tell people they are entitled to everything in the world and if the public is dumb enough to buy into that, waaa.

    I'm not sure how I should have to take a hit on my pension for a private industry, but I'm sure your buddies will try to figure that out soon enough.

    You're a broken record. Attention world, Truth 101 hates the military and supports big labor unions that pretend to help the workers while fleecing them and bankrupting the corporations that employ them. It's OK to hate the Armed Forces, Truth, just admit it.

    Your president certainly does. His solution to Iraq is to withdraw and spend even more on private contractors that will line he and his legislator buddy's pockets. Maybe we could send the UAW over to Iraq and destabilize the region with their incompetence.


  20. Well you sure as hell don't have a problem with a 13 trillion dollar debt as long as nobody touches your pension BPB. And what are you? 40, 45 years old? You get yours with colas the rest of your life. And you bitch about other people's pensions.

    Each time you post one of your self important, suck up to righties ass rants you make me sicker.

    You have no concern for the welfare of your fellow American. If you're so damn jealous because guys like me negotiated decent wage and benefit packages then join a damn union. I got news for you BPB. They won't give you jack shit out of the goodness of their hearts. They will take another tax cut though so we can go a few trillion more into debt paying your fair pension though.

    And I thought you were done anyway. What happened?

  21. I can still smell the stink of phony Truth in this country. That's why I'm here. I'm sure you'd love to keep this a strictly lib site, but no thanks.

    If the workers didn't try to vote themselves more money all of the time, we wouldn't be here, would we?

    Greedy my ass. I'm 41 and you're a fool if you think any cola they give us fixes anything.

    And trust me, I'm not jealous of a bitter old man whose leaders he votes for bend him over each time they lie to him. Don't you wish they'd kiss you first?

    Hopefully after this ass-whopin the dems get we get some true change. Not just more career politicians that want to line their pockets with taxpayer money and lobbyist money. And yes, I mean republicans, too.

    While we're on the subject, why don't you leave? You're a dying breed.

  22. Sometime last week, Rational Nation left a gracious comment under my post, WITH A WHIMPER NOT A BANG (much appreciated), which leads me to my next question.

    For months, if not years, conservative and liberal bloggers have traded insults and potshots but have never focused on areas of common concern, the result of which is that our voices remain fractured and divided when there are at least a few issues that should unite us. Examples:

    Some conservative and libertarian blogs have expressed distrust over what they call ‘corporate statism.’ Guess what? These concern liberals too. Why have we avoided talking about it or finding common ground?

    Some libertarian bloggers lament the breakdown of our free enterprise system and the loss of competition wherein the largest corporate entities monopolize markets and control the economy to the detriment of smaller businesses. Barriers to entry concern liberals too. Why are we not about talking it?

    You read conservative and libertarian blogs and find a concern about outsourcing and high unemployment in a period of economic decline. Why is it that whenever we frame the problem, the recriminations get in the way of discussing solutions?

    What I don’t want to hear: Crap about ‘libtards,’ socialists, big government nada dada. These are conversation stoppers. It you want to have a serious discussion, put aside your insults and put on your thinking cap.

    Anyone game?

  23. But...you...spent...an entire post doing just what you are asking us not to do. Are you just reminding yourself? Tie a string around your finger. Practice what you preach, and others may follow.

  24. Ah BPB...thought you had given up on blogging...

    We have the largest consumer economy in the world and its not because we have the most consumers; that honor would go to China.

    But our economy cannot create jobs because we don't make anything in this country any longer.

    We have watched as our manufacturing sector has feld overseas in search of cheap labor....so all the BRIC nations are enjoying wonderful economic growth and we are not...

    Now you can even go overseas to see a doctor...so everything can be outsourced.

    Sadly, as we outsource jobs the working folks have to learn to live on less and less, oh I know conservatives will go on and on about if the workers weren't lazy they could get ahead...hey, computer programmers, doctors, and enigneers are being outsourced...

    Outsourcing and free markets has decapitated our economy...

    As BPB benefits are derived from taxpayers dollars and as the vast majority of taxpayers are earning less and less...his benefits are no longer guaranteed...

    If we cannot afford social security we sure cannot afford military benefits....

    47% of American households did not earn enough last year to pay taxes...there is no middle class in this country just working poor.

    If you slap tariffs on overseas goods the US Chamber of Commerce and the Cato Institute will have a fit...and China will not buy anymore treasury bonds...

    Thus begins the long slow ride to the end of America's greatness...

    We have become an investors heaven but a workingmans nightmare...

    Enjoy your benefits BPB...because without a middle class and without a living wage there is no one to tax to pay for those benefits...

  25. There is a middle class in this country, but people like you are willing to tax them into non-existence while telling them you're on their side.

    Don't put this on me and don't act like you know me or anything about me other than what I say on here.

    In all of your bloviations, you have yet to provide a logical solution for anything. The only thing you've done is use lofty language and condescension. Boring.

  26. BPB,

    I have no desire to know you or anything about you...you are just an ignorant malcontent...

    47% of American households did not pay any federal income tax last year and most likely because Obama lowered the tax rate...

    In 1970 the median household income was 29,000 and now its 54,000 which means that median household incomes did not even keep up with what little inflation we have had over the course of the last 30 plus years...

    But those are facts and facts scare you...

    So go on acting like some intellectual John Wayne wannabe...

    Here is a solution...Buy American! Demand that our government develop an industrial policy and that US taxdollars are used to only purchase US made goods...

    Demand that our government not only close the borders to illegal aliens but also that it does away with tariff free goods....

    Free trade ain't fair trade...

    Tax all investment income as wages...

    Have all elections federally funded with no more than $1 per tax paying citizen be allocated for elections.

    Make it illegal to campaign on mass media...make the candidates go door to door for votes...

  27. And yet...no one can afford American. Wonder why?

  28. I buy American as much as possible. I love America BPB.

    I dedicated nine years to helping other Americans achieve a better standard of living.

    Why are you against Americans earning a better standard of living BPB? You wore the uniform then you hate those who strived for a bigger piece of the American Dream.

    Both my parents are Veterans BPB. I don't remember either of them saying they vowed to serve and defend America, our Constition and rich people only.

  29. It's a futile discussion because we are on ideological opposite ends of the spectrum. I try to buy American when I can.

  30. Yeah, BPB, no one can afford to buy American...

    Americans do not earn enough to buy products that are made by their fellow Americans...

    One time we could, because Americans were buying what their neighbors made...

    Now Americans are buying what Chinese makes...and more and more Americans cannot afford that either...

    But the stock market has increased over 400% in the last 20 years!

    That is not an economic system but rather a ponzi scheme...

    Thank you supply side economics, it made a few very rich and it bankrupted a nation...

  31. bluepitbull - “In all of your bloviations, you have yet to provide a logical solution for anything. The only thing you've done is use lofty language and condescension. Boring.”

    There are conservative and libertarian bloggers interested in having this conversation, and a venue has been selected. Regrettably, I am not in a position to extend to you an invitation, and the reason is that there are conservative bloggers, yes, you read this right, conservative bloggers who have requested that you not be invited. The general concern is that you have no anger control and no impulse control and will reflexively disrupt conversations and offend participants with little or no provocation.

    Sorry. Maybe next year, after you have worked on your anger issues, we will try again.

  32. I wouldn't be interested in talking to so-called conservatives that would have any dealings with the likes of you anyway. Your intended insult missed it's mark again.

  33. Octo said: You read conservative and libertarian blogs and find a concern about outsourcing and high unemployment in a period of economic decline. Why is it that whenever we frame the problem, the recriminations get in the way of discussing solutions?

    Maybe we permit our anger to cloud our judgment. It’s true, at least to my way of thinking, that the issue of our economy, outsourcing, high unemployment, etc., is a bipartisan issue. It would be nice if we could discuss this without the insults or finger pointing. I don’t think that either party is innocent in these areas so I can refrain from the partisan attacks if others are willing.

  34. Pam,

    There is no "republican" and or "democrat" way to run a capitalistic economic system.

    What has happened over the last 30 years is we have focussed on "supply" rather than "demand" in the basic economic equation.

    Thus we longer have an economy that innovates and rewards risk but rather one that rewards bigness and domination.

    We have in effect devised an economic system where individuals and entreprenurs no longer matter.

    We cannot allow Wall Street to crash, we cannot allow the automakers to fail and we have to protect our healthcare industry with mandatory healthcare coverage.

    State and local governments line up to give money and tax breaks to companies to locate in their states and cities.

    We measure the health of our economy by our stock market not by the living standards of the average citizen.

    Supply side economics has shifted our whole perspective away from a job well done to a greedy one class against another.

    So now, as BPB says, American cannot afford what Americans produce...

    It feudalism when the producers cannot afford to buy what it is they produce....it ain't capitalism!

    Ronnie Reagan always said that, "...a raising tide raises all boats..."

    That ain't true....and we can thank supply side economics for this disaster....

    Fannie Mae and Freddie Mac worked fine and made homeownership for Americans a reality...then they got turned into a ponzi scheme for Wall Street.

    Glass Sengel worked fine until Phil Graham got the bright idea that we no longer needed this regulation.

    We allowed the greed and recklessness of a few to destroy the lives of many...

    If we are citizens then we need to take our country back, not from ACORN and welfare queens, but rather back from the corporate interests and Wall Street...

  35. Hi Pamela,

    As promised (see comment above @ August 23, 2010 1:00 PM), I cobbled together a bipartisan topic at Democracy Central, opening statement as follows:

    So many partisan bloggers, see how quickly they disconnect. So many attempts at starting a constructive dialogue, see how quickly these degenerate into potshots and mutual scorn. Yet, if you follow our respective weblogs from a distance, you will find areas of mutual concern: The economy, unemployment, outsourcing, trade imbalances, stagflation and American competitiveness in the world. Why must our discussions always degenerate into an eye-for-eye when we should be seeing eye-to-eye?

    Is this possible: Our politicians and news media do not want us united. Wedge politics polarizes us and turns us into a kind of political apartheid. Wedge politics keeps the party faithful in line. Public anger makes sensational news copy. Each sides gets different news, and with different news you get different views. Each side has their own talking points with noble lies and pious deceptions. Wherein lies the truth? Are we being manipulated as puppets by opportunists for partisan gain? Let us find out for ourselves.

    Here are some suggested guidelines. First, let us focus on a small number of topics, perhaps no more than three or four. Let us chose topics objectively, topics that we believe are important to BOTH sides, not necessarily a subjective pet peeve.

    Let us keep potshots and sarcasm out of the discussion. Epithets such as ‘libtard’ and ‘winger’ are conversation stoppers. Recriminations turn into circular arguments leading nowhere. Let us bring trustworthy, partisan neutral facts to the table; no soundbites or thinktank spin or party position statements. Get out your Google keyword search engines. Put aside your insults and put on your thinking cap
    May I prevail upon you to invite Rational Nation to the discussion, and any others whom you think might be a good fit? See you there.

  36. Nice to hear that I'm right once and awhile. It's true that we haven't had true capitalism in the last century. It would be nice if the feds would butt out and let commerce continue in a proper way.

    Where we diverge in our opinion is that large labor unions are the way to go. I agree, we need to look out for the little man in each establishment, but I think we can all agree that the union situation is totally out of control and at least partially responsible for many jobs going overseas. Not everyone needs everything. It's hard to teach that in a society where reality TV is the new opiate of the masses and many (not all) think that they need to live the lavish lifestyle of some hoe on TV.

    It is tough to buy American due to costs (especially autos, trucks, and motorcycles) because much of the cost of the vehicle is supporting the laborers. A fair wage? Sure. But a realistic one. I'm sure your going to ask me to define it. I admit I don't want to put a price on a human being. Certainly they should be making enough to live with a family and enough to invest wisely for retirement.

  37. BPB, I never once mentioned labor unions...

    But lets look at them...16% of the US workforce are members of a union...if you subtract out public servants (police officers, firemen, and teachers) you have unions representing less than 7% of the US workforce...

    If I am trying to figure out a problem and one variable only accounts for 7% of the outcome I am pretty much going to disregard it as irrelevant.

    Then you have the fact that UPS is unionized and it is profitable and very competitive...the Teamsters didn't hurt their operations at all.

    SEIU...now THATS a big union...they represent hotel, motel and restaurant employees...and the average salary of their members is $8 an hour....

    Last time I checked hotel rooms were still pretty cheap!


    The median household income has increased less than 1% (which is less than the inflation rate) between the years 1970 to 2008 but the stock market has gone up 400% in the same period of time...

    There has been alot of wealth created in this country but it has not trickled down...

    So to keep making these big profits the economy either had to create jobs that paid more or they had to make goods cheaper and increase the consumer buying power with credit cards...

    If your paycheck doesn't give you enough to live on and if someone wants to sell you something then they got to get you a credit card...

    The unions haven't been all the influential over the last 30 years...

  38. Can I cross check your facts? Link please?

  39. http://liberalideology.blogspot.com/2010_04_01_archive.html

    There you go BPB...

    Notice, the data comes from the Heritage Foundation...

  40. http://news.yahoo.com/s/thenation/20100812/cm_thenation/154002

    Oh, more news on unions today....

  41. You don't always need to be a prick. I was trying to learn something.


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