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"Free market" Garrett decries free market.

by: Adam L

Sun Jun 21, 2009 at 12:01:15 PM EDT



Herb Jackson's Capital Games column today has an interesting snippet about Representative Scott Garrett:
Rep. Garrett opposed an auto industry bailout when it was proposed by the Bush administration in late 2008, and signed a letter suggesting the companies go through bankruptcy reorganization rather than receive government support.

But after hearing from constituents, he is not happy with the closure of car dealerships in his district.

In a letter to Treasury Secretary Timothy Geithner and presidential adviser Lawrence Summers, Garrett said the closures "represent the direct loss of hundreds of thousands of jobs and millions of dollars to local economies."

He demanded to know the reasoning used by a White House task force in pressing for Chrysler and General Motors to shed dealerships.

Garrett has this point on his side: When the Obama administration took an active hand in managing the car companies, it inherited the heat that comes with the disruptive changes the companies have to make to stay in business.

But worth noting: At a hearing in December, Garrett criticized the restructuring plans submitted by Ford, Chrysler and GM for putting that disruption off.

"The question is, do we close dealerships in 2012 or restructure union obligations in 2011? None of that's going to help us right now: Things have to be done sooner," Garrett said.

This is the same Garrett who votes against anything that has anything to do with the federal government spending money - if it isn't on Iraq.  and this is the same Garrett who said recently that TOO MUCH REGULATION was to blame for the financial crisis, and that the free markets should sort themselves out.

And yes, this is the same Garrett who voted against the stimulus bill (the largest middle class tax cut in history) that also was to bring thousands of jobs to his district, spoke out against the auto bailout and wanted the auto companies to go through bankruptcy - just as the "free market" would have it.

But when the inevitable happened and dealerships in his (and my) district closed - he wonders how the free market would allow that and feigns outrage.

Interesting.

Adam L :: "Free market" Garrett decries free market.
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Can someone in the know... (0.00 / 0)
tell me what the truth is here. The argument from dealers is that they cost the companies nothing.
Obviously, the companies want to shed dealerships for a reason.
What am I missing?


"Where ever you go, there you are." - Buckaroo Bonzai

I think it is a mix (0.00 / 0)
the dealers, from what I understand, own the cars and can't give them back to the dealers, so they are stuck with the inventory.

However, as jobs are cut and costs are cut and cars are retooled, the suppliers lose out (I would think we would hear more about suppliers than dealers, actually) unless their parts can be used.

I think the dealership part of the equation deals with the fact that people can't afford or don't want the cars that have been made, and therefore it is the last end of the equation that we hear more about - even though I bet more mfg jobs are lost than dealership jobs.

hopefully, that makes some sense....

Scott Garrett - on the wrong side of, well, everything.


[ Parent ]
oops - first sentence shouldn't have (0.00 / 0)
[ Parent ]
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