President Obama has attacked Republican nominee Mitt Romney for his work as a venture capitalist, saying making a profit didn’t qualify him to be president.
We would say, however, being president doesn’t qualify Obama to be a venture capitalist.
Start with the automotive industry. President Obama bailed out GM and Chrysler at a cost of $80 billion and $24 billion of that is a paper loss, under water, likely never to be recovered. Our government gave Chrysler to a foreign car company. Part of that bailout included screwing a lot of retired people out of GM bonds they were holding and arbitrarily closing a lot of dealerships, costing as many as 100,000 jobs. The real capper was barring transfer to other plants of 2,500 non-union workers who had been laid off. That’s worse than Romney’s Bain Capital investing in a failing steel company and trying to make it work for several years before the Chinese flooded the steel market and the plant no longer was profitable and had to be shut down.
If only Obama had shut down Solyndra before his energy secretary subordinated the $535 million loan to the solar California panel maker, which declared bankruptcy soon after getting the government “loan.” Poof went 1,100 “green jobs.”
Or consider the $1 billion spent since 2009 subsidizing nine battery plants, including one owned by a Korean company. These are just outright grants. That’s a lot of battery plants to serve what has totaled about 17,000 electric car sales.
The plants have the capacity to produce 500 megawatt hors of lithium-ion battery capacity. That’s enough to supply 21,000 Nissan Leaf electric cars. Nissan has sold about 12,000 in the U.S. since 2010. General Motors had planned to sell 45,000 Volts but has only sold 5,700 n the first four months of 2012.
Toyota expects to sell 15,000 “plug-in” vehicles a year when it releases three models. It has sold 1,700 in April.
The battery plants were supposed to create 6,400 jobs, but only employ 2,000 currently.
The other investment wizard is the federal Human Services Department, which is shoveling out billions of Obamacare bucks to start up nonprofit insurance companies at a cost of $7.25 billion. No one who wrote insurance policies before 2009 can apply for loans to run a health coop. The result is the coops are being run by amateurs and defaults rates are consequently high. The Wall Street Journal pegged them at 91 percent so far, according to White House budget documents.
Dr. Steven E. Greer, who was asked to be a grant reviewer, highlighted some actions by the Center for Medicare and Medicaid Innovation. Among 26 grants from the CMMI in May were $1.9 million to George Washington University to reduce health care costs by $1.7 million. Or $4.5 million to the Center for Health Care Services in San Antonio to save $5 million. Or $5.6 million to the University of Chicago medical center to “train and create new jobs for an estimated 90 individuals from this high-poverty, diverse community.” That works out to $64,000 a job. For that price one could get a BA at a state college.
And why is our government spending Medicare money for another job training boondoggle when the Medicare “Hospital Fund” is forecast to be exhausted in 2024?
So Romney’s investment company had a 70 percent success rate, creating some iconic businesses, and he left that to save the Winter Olympics in Utah. Obama’s major success has been creating $5 trillion in deficits and $16 trillion in debt.