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Credit: Vanity Fair

President Barack Obama took an oath to "promote the general Welfare." Venture capitalist Mitt Romney pledged to maximize shareholder value. Unfortunately, candidate Mitt Romney is pretending the two are the same thing. As Romney repeatedly insisted this month, President Obama's rescue of the U.S. auto industry and over one million jobs associated with it is little different than his own Bain Capital days of slashing jobs - and extracting profits.

Romney introduced the new defense of his "vulture capital" past during the December 15 GOP debate in Sioux City, Iowa. There, he took Obama to task for layoffs at General Motors as part of the successful auto bailout Romney opposed:

"In the real world, some things don't make it, and I believe I've learned from my successes and my failures. The President, I'll look at and say: 'Mr. President, how did you do when you were running General Motors as the president, took it over? Gee, you closed down factories. You closed down dealerships. And he'll say: 'Well, I did that to save the business.' Same thing with us, Mr. President. We did our very best to make those businesses succeed. I'm pleased that they did, and I've learned the lessons of how the economy works. This president doesn't know how the economy works. I believe to create jobs, it helps to have created jobs."

Days later, the son of American Motors magnate George Romney repeated the talking point:

"The president has had one experience overseeing an enterprise -- a couple of enterprises, General Motors and Chrysler," Romney told Fox News in an interview that aired Sunday. "What did he do? He closed factories. He laid off people. He didn't do it personally, but his people did. Why did he do that? Because he wanted to save the enterprise, and he wants to make it profitable so it can survive."

No. In 2009, President Obama was trying to save an entire industry, one at the very heart of American manufacturing. In so doing, Obama likely helped save the United States from a second Great Depression.

As McClatchy reported this week:

U.S. and foreign automakers are poised to add nearly 167,000 U.S. jobs by the end of 2015, according to the nonprofit Center for Automotive Research in Ann Arbor, Mich. That breaks down to 30,000 hourly and salaried workers at the Big Three U.S. automakers, 17,000 jobs at foreign automakers and about 120,000 auto-supply sector jobs...

Most analysts say the industry's growing stability is sweet vindication for the federal government's $80 billion bailout, which allowed General Motors and Chrysler to reorganize. The Center for Automotive Research estimates that the bailouts saved more than 1.1 million jobs in 2009 and another 314,000 in 2010, while avoiding personal income losses of more than $96 billion.

(The November 2010 CAR analysis is available here.)

And over time, the federal tax revenue from that personal and business income will more than offset any potential losses the government might sustain from its future sales of GM stock. As USA Today noted in June in admitting the success of the Obama administration's bailout of Detroit:

That loss is nothing to sneeze at. It's a heck of a lot better, though, than the $108 billion to $156 billion the government would have lost over three years if it hadn't intervened, according to the Center for Automotive Research, a Detroit-based think tank. Those losses would have come in the form of lower tax receipts and higher spending for pension guarantees, jobless pay and other benefits.

As for Mitt Romney, who famously insisted in November 2008 that Washington should "Let Detroit Go Bankrupt," USA Today rightly pointed out, "On what planet would the automakers have found private lenders willing to provide tens of billions of dollars in needed bankruptcy financing at the height of a financial panic?"

In a nutshell, President Obama's tough actions, including painful layoffs and pay cuts for auto workers, saved American jobs, American taxpayer revenue and perhaps the American economy. But for Mitt Romney and his Bain colleagues, the benefits often went into their pockets alone.

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Robert Reich says the feds need to take over:

It's time for the federal government to put BP under temporary receivership, which gives the government authority to take over BP's operations in the Gulf of Mexico until the gusher is stopped. This is the only way the public will know what's going on, be confident enough resources are being put to stopping the gusher, ensure BP's strategy is correct, know the government has enough clout to force BP to use a different one if necessary, and be sure the president is ultimately in charge.

If the government can take over giant global insurer AIG and the auto giant General Motors and replace their CEOs, in order to keep them financially solvent, it should be able to put BP's north American operations into temporary receivership in order to stop one of the worst environmental disasters in U.S. history.

The Obama administration keeps saying BP is in charge because BP has the equipment and expertise necessary to do what's necessary. But under temporary receivership, BP would continue to have the equipment and expertise. The only difference: the firm would unambiguously be working in the public's interest. As it is now, BP continues to be responsible primarily to its shareholders, not to the American public. As a result, the public continues to worry that a private for-profit corporation is responsible for stopping a public tragedy.

[...] Expressing grave concerns is not enough. The President needs legal authority to order BP to protect the United States.

The President is not legally in charge. As long as BP is not under the direct control of the government he has no direct line of authority, and responsibility is totally confused. For example, listen for the "we" and "they" pronouns that were used by Carol Browner in response to a question on NBC's "Meet the Press" Sunday (emphasis added): "We're now going to move into a situation where they're going to attempt to control the oil that's coming out, move it to a vessel, take it onshore ....We always knew that the relief well was the permanent way to close this .... Now we move to the third option, which is to contain it. If [the new cap on the relief well is] a snug fit, then there could be very, very little oil. If they're not able to get as snug a fit, then there could be more. We're going to hope for the best and prepare for the worst."

When you get pronoun confusion like this, you can bet on confusion -- both inside the Administration and among the public. There is no good reason why "they" are in charge of an operation of which "we" are hoping for the best and preparing for the worst.

The president should temporarily take over BP's Gulf operations. We have a national emergency on our hands. No president would allow a nuclear reactor owned by a private for-profit company to melt down in the United States while remaining under the direct control of that company. The meltdown in the Gulf is the environmental equivalent.

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I just wonder why Obama's approach is so very different with the automakers than it is with the banking industry:

General Motors filed for bankruptcy on Monday morning, submitting its reorganization papers to a federal clerk in Lower Manhattan.

G.M. said it had $82.3 billion in assets and $172.8 billion in debts. Its largest creditors were the Wilmington Trust Company, representing a group of bondholders holding $22.8 billion in debts, and affiliates of the United Auto Workers union, representing nearly $20.6 billion in employee obligations.

The filing itself seemed anticlimactic. It was a simple procedure done thousands of times each day across the country, by individuals and business alike. But not usually, as in this case, by companies like G.M. that have woven themselves into the fabric of America culture.

The company was forced into the filing by President Obama, who is betting that by temporarily nationalizing the onetime icon of American capitalism, he can save at least a diminished automaker that is competitive.

[...] The bankruptcy of General Motors culminates a remarkable four months of confrontation between Washington and Detroit that is expected to result in a drastic downsizing of the company. It also places the government in uncharted territory as a business owner, as it takes a majority ownership stake in the company during its restructuring.

Why aren't we forcing the "too big to fail" banks to downsize?

The Congressional GOPers (Party of Corporate Pork) are so, so upset when the wrong people are on the losing end in government bailouts. See if you can spot the delicious irony!

Dozens of lawmakers are challenging the authority of President Obama's auto task force, saying its swift restructuring of General Motors and Chrysler is unjust to investors, dealers and others.

In a letter to Treasury Secretary Timothy F. Geithner yesterday, Rep. Jeb Hensarling (R-Tex.) said the auto task force is waging a "war on capital" by favoring the United Auto Workers, who are being offered a 39 percent equity stake in the new GM, over bondholders, many of them small investors and retirees, who are being offered 10 percent.

"Choosing sides between equal classes of creditors sets a terrible precedent -- one that could cause serious long term challenges to the financing marketplace by eroding investor confidence at the worst time in our recessionary period," Hensarling wrote in a letter signed by 20 other House members.

Yes, I know there's more to the story. I know Chrysler promised there would be no job losses or closings (which I put right up there with "the check is in the mail). But the absolute cojones of the Republicans, to complain about a protected class - well, I can't let that go without comment.

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A pretty good barometer of Republicans' utter desperation these days is just how farflung from reality their attempts to characterize President Obama are getting to be.

Newt Gingrich, who's clearly preparing for a 2012 White House run, was interviewed yesterday on Fox by Greta Van Susteren. Gingrich has been trying desperately to smear Obama as a weak leader, while cozying up to the GOP's tea-bagging populist wing.

So he hit on a way to hit both sweet spots in one swell foop: Smear Obama as an incipient authoritarian.

The subject was Obama's press conference earlier this week. First in the order, of course, he had to blame Obama's popularity on the media: "I think the Washington White House press corps has taken such a pathetic dive with this president that they ought to just be part of his PR firm!"

But then he there was this exchange:

Van Susteren: Well, you know, Fox News Channel got, quote, punished -- Fox News Channel didn't get a question the other night -- Major Garrett, our White House correspondent -- because the Fox broadcast, not the Fox News Channel, but the Fox broadcast decided not to air the press conference.

Gingrich: Right. Which should tell all of you about the abuse of power inherent in this administration. They now control General Motors, they basically control Chrysler, they control Citibank, they control AIG, and they are prepared to punish people.

I think that's very dangerous, to have a president who thinks he should get up in the morning and punish Americans. You know, appease foreigners, bow to the Saudi king, embrace the Venezuelan dictator, and punish Americans? I think that's a very dangerous attitude.

Gingrich is clearly counting on the public to be like Fox News anchors: They have a convenient case amnesia about the previous eight years of wiretapping, screw-the-public Republican rule.

But notice the underlying meme here: Obama is an incipient dictator who will punish his enemies and rule with an iron fist. Which, of course, is exactly what we're hearing from the growing militia contingent.

And then conservatives get all bent out of shape when someone like the DHS accidentally points out the growing similarities between them and right-wing extremists. Huh. Gee, wonder how that could happen.

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We all know that Glenn Beck is making a career out of saying bizarre things and getting all kinds of facts wrong.

Yesterday he was downright brazen about trotting out flat falsehoods as part of his rants. The first came when he started ripping President Obama for supposedly overusing his teleprompter. In the process, he resurrected the myth of Saint Sarah "Evita" Palin and how she read her entire speech without the use of a teleprompter after it broke down on her.

Well, yeah, except said story is complete BS, though that didn't prevent Palin from repeating it anyway.

But, as with all right-wing populists, the myth and its maintenance are more important than piddling little facts.

Such as Beck's subsequent rant about the New York City flyover fiasco, in which he painted a portrait of the scene that made it seem as though Obama himself were on board the plane:

Beck: Then yesterday we had the 'secret photo op' of Air Force One flying over Manhattan. Which gave a lot of people flashbacks to 9/11. See all those people on the street? They were evacuating buildings. These people are running in fear because the president flew his plane over for a photo shoot! He's yelling at General Motors, and now he's yelling at Chrysler -- which the unions own, and we own -- General Motors -- Now, he talks to them about coming to meet Congress on their private planes. But he's taking Air Force One, a jumbo 747, out from Virginia to fly it up to New York for a photo op!

In case there's any confusion besides Beck's (which can't be fixed, it seems): Obama not only was nowhere near the plane's flight (this was only one of several planes that serve as AF1), he was furious that it had been authorized at all.

But telling his audience that would ruin Beck's little fable.

I can't begin to tell you just how little sympathy I have for the Wall Street bankers who bitch and moan about how impossible it would be to live in NYC on "only" $250K. (My kid manages to live there on considerably less.)

No, my sympathies lie with people like this who worked hard, played by the rules and are now caught in an economic disaster:

As the Obama administration prepares to send Chrysler into bankruptcy court, with General Motors possibly to follow, one of the biggest losers may be the automakers' current and future retirees, a group of nearly 1 million people who could see their pensions and health-care funds slashed by tens of billions of dollars.

The loss could pose political trouble for the Obama administration, which has pressed both automakers since February to ready themselves for bankruptcy as a means of purging their overwhelming debts.

The GM and Chrysler pension plans together cover 928,000 people, and many of them worry that the industry restructuring already underway could slice their benefits.

A group of nonunion retirees is scheduled to meet with the administration's auto task force this morning to try to save their pensions and health benefits. The United Auto Workers is also negotiating over changes to the benefits, but has yet to reach an agreement with the Treasury Department, a source familiar with the matter said.

"We are going to do what we can to help protect their benefits to the degree that we can," said an administration official, who spoke on condition of anonymity because the discussions are private. "It's premature to speculate on what will happen. This is certainly a constituency that we are focused on, but we have not and cannot rule anything out."

With Chrysler facing an end-of-month federal deadline to reach agreements with its bankers and the union, stakeholders have been trading a flurry of offers and counteroffers.

In recent weeks, members of the task force have struggled to devise rescue plans and a legal strategy that might protect those workers if the companies file for bankruptcy. But experts say an outcome is difficult to predict.

"I feel betrayed," said Vicki Prout, 57, a former executive assistant at Chrysler whose 23-year career there included typing speeches for Lee Iacocca when he was chief executive. "They offered these incentives for us to take early retirement, and I took one. Now it looks like my fixed income wasn't so fixed."

She estimated that her monthly payment would be cut in half if the pension is terminated in a bankruptcy. She has started looking for jobs around her home in Troy, Mich., but said there are not many to find.

"I feel like I've been caught in a storm," she said.

The death spiral continues while the GOP whistles past the graveyard.

Bloomberg:

General Motors Corp., the largest U.S. automaker, will cut 10,000 salaried jobs globally and reduce pay for other U.S. white-collar workers by as much as 10 percent to slash costs and keep $13.4 billion in government loans.

About 3,400 of GM’s 29,500 U.S. salaried jobs will be cut by May 1, the company said. The Detroit-based automaker said in a statement it will cut pay temporarily by 10 percent for U.S. executives and by 3 percent to 7 percent for many other U.S. salaried employees. GM is reviewing salaried worker pay and benefits in other countries.

GM needs to accelerate cost-cutting plans after the automaker’s U.S. auto sales fell 49 percent in January. GM and Chrysler LLC must submit progress reports by Feb. 17 on their efforts to restructure their businesses, return to profit and repay $17.4 billion in U.S. loans by the end of 2011.

I'm not holding my breath on this one. I truly believe that American companies are being typically short-sighted as ever. Considering there is a six month waiting list for Toyota and Honda hybrids in my area, I would imagine that the company on the forefront of offering an electric car would have consumers beating down their door, especially as gas prices go higher and higher and people want less and less to be dependent on foreign oil. Further, I simply cannot believe that we have the technology to create a space station, but we cannot figure out a working electric battery for a typical commuter car.

SJ MercuryNews:

The company that killed the electric car, at least according to the makers of a popular 2006 documentary film, intends to announce today that it's getting back into that business.

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Brandweek:

To stimulate consumer interest in its line of American-built cars, General Motors has turned to radio and Sean Hannity. Beginning Sept. 25, Hannity will serve as the spokesperson for GM's "You're A Great American Car Give-Away" offering radio listeners the chance to pick and win one of five GM vehicles. Read on...

Jane admits the mind boggles at the thought.