Tags: Barack Obama | Donald Trump | Financial Markets | Joe Biden | Kamala Harris | Presidential History | Unions

The GM Bailout Should Haunt Biden and the Democrats

The GM Bailout Should Haunt Biden and the Democrats

(Raffaele1/Dreamstime.com) 

By Friday, 16 October 2020 05:40 PM Current | Bio | Archive

President’s Franklin D. Roosevelt, Harry Truman and John F. Kennedy wouldn’t recognize today’s Democratic Party. They represented and fought for people on Main Street — everyday Americans and the working class.

Today’s Democratic Party led by Joe Biden and Sen. Kamala Harris, D-Calif., represent the party of Wall Street, Silicon Valley and a socialist, far-left agenda.

According to OpenSecrets, Biden is hauling in big money from Goldman Sachs, Citigroup, JPMorgan Chase, and Morgan Stanley.

Biden even promised Wall Street donors during a swanky New York City fundraiser in 2019 that he wouldn’t "demonize" the rich if he’s elected, and that "I need you very badly."

But nothing has changed.

Biden has always favored the rich and well connected over hardworking, everyday people.

Even as Barack Obama's vice president.

Here’s what I mean:

Many all-too-well remember the Obama-Biden administration’s bailout of General Motors.

The company was in disarray because of mismanagement and declining sales.

In 2009, GM filed for bankruptcy, becoming at that time the largest company in U.S. history to do so.

In an unprecedented move, the U.S. government invested over $50 billion to save the failing automaker. The bailout even earned GM the nickname, "Government Motors."

But this was no joke. It cost the American taxpayer $11.2 billion — money that the "New GM" has yet to pay back despite record net income.

The bailout was both significant and unprecedented.

Not only were billions of hard-earned taxpayer dollars being spent to prop up a failing company, but once GM received bailout money, they made sure to pay multimillion dollar salaries to their top executives.

Records also show that they paid in full nearly $41 billion owed corporate vendors, unions, and car dealers.

But what the Obama-Biden administration steadfastly refused to pay was the $500 million in personal injury product liability claims on GM’s books at the time of the bailout.

Instead, the Obama-Biden administration cherry-picked who they wanted to pay — taking care of GM’s executives, unions, and corporate vendors, while abandoning customers injured in accidents caused by product defects.

This single action left thousands without compensation they were owed and so desperately needed. Even though these claims paled in comparison to the $41 billion in liabilities paid in full, the Obama-Biden administration justified its treatment of the accident victims’ rightful claims by that these claims "were not necessary for the commercial success of New GM" and so should be left behind to receive pennies on the dollar. (See Wilson Depo Testimony).

Under Chapter 11 Bankruptcy laws, GM was given immunity and shielded from having to pay out liability claims that were filed prior to their bankruptcy — essentially wiping their slate clean.

The Obama-Biden administration was fully aware that GM was on the hook for hundreds of millions of dollars in personal injury claims for defective GM cars, but the Obama-Biden administration made sure that these claims were paid only at a fraction of the amount due.

During the 2012 Democratic National Convention, then-Vice President Biden proclaimed, "Bin Laden is dead and General Motors is alive!"

On the presidential campaign trail, Biden often reminds voters that it was the Obama-Biden administration that bailed out GM and kept the auto industry alive.

What Biden won’t tell you, however, is that he also completely deprived everyday hardworking Americans by giving the government immunity from personal injury claims for product defects, while at the same time assuming outrageous salary and retirement obligations of GM’s executives using federal bailout money.

And many of these personal injury claims are not minor — many victims were left with debilitating, long-term injuries and even paralysis.

If Democrats and the Obama-Biden administration were truly for the working class, GM customers – who are mostly every day, hard-working people who are still suffering from permanent and physical damage because of accidents that were GM’s fault — then why did they abandon them in the GM bailout?

When put to the test, the Obama-Biden administration abandoned the injured in favor of corporate profit and shareholder gain.

Why should we think they won’t do the same thing again in this downturn if given the opportunity?

These would be great questions to ask Joe Biden.

President Trump campaigned on the promise that the "forgotten man" would be "forgotten no longer."

He’s kept that promise.

He’s brought back jobs that the Democrats shipped overseas; he’s signed historic criminal justice reform legislation that reverses tough on crime legislation passed by Democrats that unfairly incarcerated Black men and women in America; he’s put more money in the pockets of hardworking, middle class Americans thanks to his tax cuts; he’s created the lowest unemployment rate in history for Black and Hispanic communities; and he’s created the best economy we’ve seen in American history.

Again, under President Trump, the "forgotten man" is "forgotten no longer."

Yet, despite a historic record of accomplishments in just three years, there’s more work to be done.

Biden left thousands of hard-working families to needlessly suffer for the rest of their lives because he didn’t consider them important to GM’s future commercial success.

The accident victims left behind in the GM bailout are the forgotten men and women that President Trump pledged to support and he should direct the federal Judgment Fund to pay these victims the full amount due to them in the GM bankruptcy and not continue carrying the water of Biden and the Democrats who callously denied these victims the just compensation they were due.

The Democratic Party talks about being the party of the working-class, but it’s President Trump who’s showing them how to do it.

Make America Great Again is more than a catchy slogan. It’s a call to action — now and on Nov. 3.

Mark Vargas is a trusted adviser and close confidant to some of the highest profile political and business leaders in America. From 2007 to 2010, Mr. Vargas served as a civilian within the Office of the Secretary of Defense on a special Iraq task force. In 2009 he was awarded the Secretary of Defense Global War on Terrorism Civilian Service Medal. His civilian service included 14 trips to Baghdad. Follow Mark on Twitter: @markavargas. Read Mark Vargas's Reports  — Click Here Now.

© 2020 Newsmax. All rights reserved.


   
1Like our page
2Share
MarkVargas
The Democratic Party talks about being the party of the working-class, but it’s President Trump who’s showing them how to do it.
citigroup, goldman, kennedy, roosevelt, truman
1030
2020-40-16
Friday, 16 October 2020 05:40 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved