The Fix Is In! Rep. Barney Frank Delays Local GM Plant Closure
You, TTAC’s Best and Brightest, knew it was going to happen: that unfortunate intersection of business and politics, where the taxpayer-supported GM would be forced by its new masters to place the latter ahead of the former. In other words, brain dead zombies are easily led. The Hill reports that Massachusetts Congressional Representative Barney Frank has “convinced” GM to keep a parts operation in his district open for business. “Frank’s staff said the lawmaker spokes with GM CEO Fritz Henderson on Wednesday and convinced him to keep the Norton, Mass., plant open for at least 14 months.”
Need we (and the Hill) point out that Barney is chairman of the House Financial Services Committee? You know, the pols that oversee the government’s bailout program, under which GM has received $50 billion? No, I didn’t think so. [Thanks to lw for the link.]
Long126Mike - you are right of course, but I think in this case it has been pushed too far. The gov is taking over for the explicit purpose of cutting expenses and getting the business profitable again. And the first thing they do is sabotage themselves? I agree that Reps are supposed to help their districts, but it appears to be increasingly at the expense of everyone else, and eventually, even themselves.
@ long126mike : "It’s not really clear what the problem is. It’s a Rep’s job to represent his or her constituents. One can complain about that reality, but that’s how our system works. If Rep. Frank weren’t standing up for his constituents, then he wouldn’t be doing his job. It’s completely normal for any politician to try and help their district." That is the problem. Now that the government owns GM all of the "rep's" will represent the interests of their constituents, which unfortunately directly oppose those of a profitable automaker.
I'm with long126mike. Frank is just doing his job. And he'd probably try to delay closure of that place even if GM weren't government owned. It's what Representatives do.
So with this news and more to come is the New GM still worth $33B? To the smart investor the new GM isn't worth 33 POS's.