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GM boycott over bailout accomplishes nothing

(Last updated: 06/10/09 7:06pm)

Government intervention has been a touchy subject in political circles since the economy went sour. Financial bailouts, billions of dollars in stimulus money and the government’s assistance to auto giants General Motors Corp. and Chrysler LLC have upset many Republicans.

One in particular, a conservative radio talk show host by the name of Hugh Hewitt, is trying to vent that disdain for the government. For whatever reason, he chose to direct it at GM.

Hewitt said on his radio show recently that “Government Motors,” as he calls it, should be made an example of by those people who don’t believe government bailouts are the way to save companies. To teach that lesson, Hewitt — and later Rush Limbaugh — called on their listeners to join a boycott of all GM products until the government removes itself from the company. Surely Hewitt thought at the time this would be a smart idea, but we wonder exactly what he hopes to accomplish.

Let’s humor Hewitt and say his boycott works perfectly — which it won’t — and not a single GM car is purchased this year. His target, the government, would have two options: they can leave the company for dead, or they can give them even more money to try and build the product back up. In either scenario, GM is treated as collateral damage. One of the signature products of the U.S. would fail just so a talk show host can make his point. Really, there’s nothing to agree with in this boycott.

If this were a strike directed at GM and not the government, our position might be a little different. Hewitt could have called out the auto company on safety standards, gas mileage or any number of other potential concerns about those cars and he would have been justified. The economy is bad, but legitimate boycotts should still take place.

But Hewitt has seriously misdirected his anger on this issue.

A protest of the government should be directed at the government itself. Many people in cities across the country held “tea parties” earlier this year to protest government spending and each had the right to do so. They were trying to influence their government by directly voicing their opinions. A boycott of GM would only increase the company’s and the country’s economic issues. Hewitt is cutting off his nose to spite his face.

It’s very likely Hewitt knew this plan may not work or even gather much support, but it’s safe to say an extreme opinion like this would get plenty of attention from the national media. Hewitt protested government intervention frequently on his show, but received minor attention for it. When he singled out one of the world’s biggest car manufacturers, outrage — and more importantly, attention toward his cause — poured in. He might not even care about the strike, he could just want everyone to know how he feels.

His logic is backward. If he really wants the government to stay away from Detroit, then he should be promoting the sale of GM cars. The more sales they have, the quicker they can get the company back on its feet and paying off those government loans. To punish GM for what the government is doing is asinine.

Originally Published: 06/10/09 7:06pm




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Sophomore forward Delvon Roe dunks the ball during the second half. The Spartans’ pulled out on top in a close 67-65 game with Penn State on Thursday night at Breslin Center.

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Commentary:


Keep missing the point

06/11/09 7:46am

Try to following along —

- Commie-crats screw up everything. Look at Detroit, Detroit 3, Social Security, Medicare, Medicaid, Slick Willie and the public debt (NOT deficit), public housing, AFDC, welfare.

- Given the aforementioned — why would anyone buy anything that was tainted by Commie-crats?

Like whether MESSIAH will fail.

MESSIAH is going to fail, not because of his skin color — but because DEBT KILLS.

And MESSIAH is addicted to DEBT to pay for this ACORN pals’ fun-times.

Yeah, yeah — debt is racist. Tell me about it.

Grandma Taters

06/11/09 8:31am

and later Rush Limbaugh — called on their listeners to join a boycott of all GM products until the government removes itself from the company
Liars, bold-faced liars: all you had to do is go to Rush’s home page and you would have seen that your statement was false. So are you the world’s worst journalist or are you just liars? I guess there is no room for the truth in such a prestigious paper as the SN.

"Media Mutters" f'ed up again

06/11/09 9:14am

http://www.rushlimbaugh.com/home/daily/site_061009/content/01125115.guest.html

“ .. All I did, to clarify, was report a poll that said X number of Americans — what was it, 18 or 20% — say they are not going to buy a GM car anymore, after this bailout.

“Or a Chrysler. They’re not going to do it and then I said after that that I could understand it ..

“I urged no boycott of GM. General Motors is a sponsor here. (interruption) I bought a General Motors — That’s right! I bought a new Suburban last week.”

WHEN IS THE CORRECTION GOING TO APPEAR?

Yeah, stupidity can’t be cured. Tell that to “Media Mutters” and your COMMIE-CRAT masters and Walt Sorg on WILX-AM.

listener

06/11/09 9:16am

Doesn’t Rush own a GM car anyways, heck he even bought one for one of his listeners, this was while GM was tanking too

Todd

06/11/09 9:28am

Actually, we should boycott GM AND Fiat, er, I mean Chysler, and buy Ford. While Congress fiddles with “clunker vouchers” to get people to buy the vehicles they will force the Tiny 2 to build, Ford will be successful as it provides the market with the trucks and SUVs consumers will still demand. Time to buy Ford stock.

Matt

06/11/09 4:00pm

Well given that the senior debt holders were f*cked over by the Auto Task Force and given a lesser position in the newly formed Chrysler and GM than the junior debt holders (read UAW), I think a boycott of those companies serves a good cause.

That cause being punishment for the unions (the new defacto owners of GM and Chrysler), that the government paid off by basically throwing out contract law and pay off their cronies at the UAW.

Due to the manner in which these two situations were handled I will never again buy a car that is produced by the UAW. Call me what ever you want, but the fact of the matter is that these deals were nothing more than a payoff to the UAW for its support of Maobama.

...

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Grandma Taters

06/12/09 8:13am

Nice rebuttal and well said, I agree 100% Matt.

p.s. still waiting for the SN to apologize to Rush?

hvt

06/12/09 10:54am

Thanks, Grandma, for calling out the editors. They deserve it.
I own a Chevy, but will not buy another. The way ordinary investors and GM/Chrysler dealers have been treated by the gov’t and these two companies is an abomination and I won’t bless it by buying their products.
I also own a Ford and will gladly buy another, provided they stay away from the gov’t trough and treat their dealers fairly.