Political Cortex: Brain Food for the Body Politic

"Officials say the president will insist that once the government sets up new management and a board of directors, it will remove itself from GM's day-to-day operations.  But even his aides anticipate intense pressure on the company's managers as they are called to testify in Congress and face questions like why they decided to build new cars in Mexico and South Korea, rather than in Michigan and the South."

Questions like these should have been resolved before billions were lavished on GM.

Does it make sense?  This question has been asked, as this informative article explains:

"'It is unacceptable to ask U.S. workers to subsidize the exportation of their jobs,' said Representative Dennis Kucinich, whose district includes Cleveland, `the taxpayers' investment should be used to protect American plants so that American workers can build the next generation of automobiles.'"

This is only fair!  But it became self-evident on June 1 why GM wants to build cars, in Mexican and South Korea.  The Wall St. response told the story as stock prices soared.

Building cars in Mexico and South Korea with cheap labor can make for larger profits.  Profits represent all some business short-sighted unethical leaders can see.

On Lou Dobbs' CNN program, the talk show host on June 1 interviewed the new head of GM and asked point blank if it was fair to ask U.S. taxpayers to fund GM's foreign plants, which take jobs away from U.S. workers at GM.

His answer was blunt and easy to comprehend.  He explained that the costs of building autos in Mexico and South Korea was cheaper than in the U.S. and the U.S. car buyer can benefit with lower prices when GM brings its foreign built cars back to sell in the U.S.  All smiles, this new General Motors head had just added insult to injury when he graciously thanked the U.S. taxpayer for making this result possible.

As stated in the New York Times article:

"Rob McNabney, chairman of the Madison County Democratic Party in Anderson, Indiana, a one time booming automotive center, said the problems for Mr. Obama were severe, 'He's going to be judged by what he does,' Mr. Mahoney said."

In a New York Times business page article by David E. Sanger on June 1 datelined Washington, we learn that Obama has appointed a 31-year-old who is dismantling GM:

"It is not every 31-year-old who, in a first government job, finds himself dismantling General Motors and rewriting the rules of American capitalism.

"But that, in short, is the job description for Brian Deese, a not quite graduate of Yale law school who had never set foot in an automotive assembly plant until he took on his nearly unseen role in remaking the American automotive industry.

"Not for that matter, had he given much thought to what ailed the industry that had been in decline ever since he was born.

"Mr. Deese was thrown into the auto industry's maelstrom as soon as the election night parties ended.

"Mr. Deese, a special assistant to the president for economic policy, as acknowledged recently as he hurried between his desk at the White House and the Treasury Building next door, `It was a little scary.'"

You can say that again.