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George Will (and Jacob Sullum) on The Illegality of the Chrysler Deal
In his Wash Post column yesterday, George Will asks whether the massive government intervention in Chrysler's meltdown (and the ongoing presence in GM's failure) is legal:
As the court said in its order permitting completion of Chrysler's bankruptcy, its refusal to review what lower courts have authorized "is not a decision on the underlying legal issues" and pertains to "this case alone."
That matters because the more complex and consequential General Motors bankruptcy is not completed, and as a consultant said in an e-mail to Chrysler's then-chief executive, Chrysler was a "guinea pig" on which the government tested what it can get away with in GM's bankruptcy, which involves the same issues: Is it lawful to use Troubled Assets Relief Program (TARP) funds for this? Does the mistreatment of Chrysler's secured creditors constitute an unconstitutional taking of property?
Will cites Reason's own Jacob Sullum in the column, who was the first (and remains the most vociferous) in pointing out the uncomfortable and irrefutable fact that the feds' moves are simply not legal via the legislation used to authorize them:
Although he ran on a promise to respect the legislative branch's constitutional role, Barack Obama applauded the Bush administration's illegal loans, and since taking office he has not sought congressional approval for a bailout that is still operating outside the law. President Obama's high-handed engineering of the pending merger between Chrysler and Fiat, a deal that flouts well-established bankruptcy principles, confirms he is no more committed to the rule of law in this area than his predecessor.
The Obama administration continues to subsidize Chrysler and G.M. (and even the companies that sell them parts) with money that Congress allocated to the Troubled Asset Relief Program (TARP). As the name suggests, the Treasury Department was supposed to use that money to buy troubled assets from financial institutions, the aim being "to restore liquidity and stability to the financial system." There is not a word in the Emergency Economic Stabilization Act, the law that created TARP, about automobile manufacturers.
Charles Montgomery|6.15.09 @ 7:46AM|#
The galternative rockers here at Reason bang on their drums in
reliable rhythm.
Still.. it's Casablanca-ish to believe that a government will shy
away from something that is illegal.
I'm interested in what a libertarian response would be to collapse
of the US auto industry.
Obviously, state capitalism and unionism have failed.
..|6.15.09 @ 7:52AM|#
Ok, so it's illegal. Since when did that ever stop a government from doing anything it wanted to do? It's a little late to even pretend there are any limits on the government.
Libertarian|6.15.09 @ 7:58AM|#
"I'm interested in what a libertarian response would be to
collapse of the US auto industry."
Meh.
|6.15.09 @ 7:59AM|#
Charles Montgomery writes: "I'm interested in what a libertarian
response would be to collapse of the US auto industry."
Why would a libertarian be the least bit concerned about
that?
What a stupid question. Trying to catch someone in an
inconsistency? Ohh! Tricky!!
Warty|6.15.09 @ 8:14AM|#
I'm interested in what a libertarian response would be to
collapse of the US auto industry.
I, personally, would hire a cartload of IllegalMexicans to bulldoze
Detroit. In its place I'd have them build the world's largest
frozen burrito factory. Then I'd amnesty the shit out of them.
MNG|6.15.09 @ 8:19AM|#
""I'm interested in what a libertarian response would be to
collapse of the US auto industry.""
"Yay, Out of work countrymen, rejoice, let the reallocation of
capital to more productive ventures commence!"
Gilbert Martin|6.15.09 @ 8:35AM|#
"Although he ran on a promise to respect the legislative
branch's constitutional role, Barack Obama applauded the Bush
administration's illegal loans,"
Obama did more than applaud it - he urged Bush to do it when when
they had their meeting before Obama took office.
|6.15.09 @ 8:46AM|#
"Are you saying the president can do something illegal..."
"I'm saying...when the president does it...its not illegal"
Naga Sadow|6.15.09 @ 8:52AM|#
Surprisingly, I'm agreeing with MNG. That would sum up my view
on those poor exploited workers.
*twirls mustache and grins evilly*
the innominate one|6.15.09 @ 8:53AM|#
that was a good column by Geo. Will, and it's good to see reason getting its props
Naga Sadow|6.15.09 @ 8:58AM|#
innominate one,
Am I the only regular to notice that Reason has been a lot
of mentions lately? WSJ, Wash Post, NY Times?
robc|6.15.09 @ 8:59AM|#
What Naga said, only without the mustache twirl.
Why should we favor workers in an unproductive industry over
workers in a productive industry?
When put that way, it seems pretty obvious, doesnt it?
MNG|6.15.09 @ 9:04AM|#
"Newly unemployed auto workers rejoice, creative destruction takes a little time but is always worth it, meanwhile enjoy your hobo chili!"
MNG|6.15.09 @ 9:07AM|#
Naga
Not a Dave Attell fan, eh?
http://www.urbandictionary.com/define.php?term=Hobo%20Chili
|6.15.09 @ 9:08AM|#
"Newly unemployed auto workers rejoice, creative destruction
takes a little time but is always worth it, meanwhile enjoy your
hobo chili!"
Meanwhile, all those greedy bastards laid off in the oil services
industry with the collapse of oil prices should be greatful we'll
even allow them hobo chili...
Naga Sadow|6.15.09 @ 9:20AM|#
LIT,
No, no, no. Employment based on the value consumers place on the
product, i.e, buying the product produced does not fit into MNG's
book. Labor is the source of prosperity, that's why India and China
with their teeming workforce are the envy of the world.
|6.15.09 @ 9:23AM|#
Naga, even Rush Limbaugh mentioned Matt's CA newspaper endorsement post. Someone is doing a good job getting Reason into people's heads.
|6.15.09 @ 9:28AM|#
My realclearpoplitics reading sister said she had been linking to Reason lately. She was pretty liberal until Obama stole her Bank of America retirement.
|6.15.09 @ 9:39AM|#
Of course, the question of legality is now moot. The
administration's test case at Chrysler obtained the desired result:
nobody has standing to challenge TARP, so there will be no legal
challenges.
She was pretty liberal until Obama stole her Bank of America
retirement.
What's that saying about liberals who have been mugged?
Naga Sadow|6.15.09 @ 9:44AM|#
No amusement parks for the IllegalMexican workers? That's fucked up, Warty. Get with the times bro.
Warty|6.15.09 @ 9:47AM|#
MNG, the former autoworkers can make burritos in Warty's
factory. Duh.
Fuck no. I don't want any union ideas getting into my
trabajeros.
Abner MacGillicuddy|6.15.09 @ 9:51AM|#
"Newly unemployed auto workers rejoice, creative destruction
takes a little time but is always worth it, meanwhile enjoy your
hobo chili!"
The average American worker sees the UAW's loss of its gravy train
in the same way European tenant farmers viewed the aristocrats'
losing the right to fuck their (the farmers, that is) twelve year
old daughters.
|6.15.09 @ 9:57AM|#
Illegality may not stop the government but it shouldn't go unchecked. This is a big part of what our 1st amendment rights are for. Our country's founders knew this could happen. Props to Will and Sullum for exposing this.
Xeones|6.15.09 @ 10:10AM|#
This is a big part of what our 1st amendment rights are
for.
Also, ultimately, our 2nd amendment rights.
Xeones|6.15.09 @ 10:11AM|#
Fuck no. I don't want any union ideas getting into my
trabajeros.
Good point. I guess they could all crash at MNG's place until they
get back on their feet, since he believes that they are owed a
living by the rest of us or some such bullshit.
|6.15.09 @ 10:38AM|#
Of course, the question of legality is now moot.
It's "moo", RC, not "moot". A moo point is like a cow's opinion.
It's moo.
Start towing the lion please.
T|6.15.09 @ 10:41AM|#
Meanwhile, all those greedy bastards laid off in the oil
services industry with the collapse of oil prices should be
greatful we'll even allow them hobo chili...
Dude, it's Texas. We do Hobo BBQ down here.
|6.15.09 @ 10:55AM|#
MNG,
Why do you hate the workers and shareholders of Ford Motor Company
so much?
EscapedWestOfTheBigMuddy|6.15.09 @ 10:55AM|#
I'm interested in what a libertarian response would be to collapse of the US auto industry.
Buy stock in those parts manufactures still afloat?
Invest in a local garage?
Take my own car in for a thought fix up before prices on parts and
labor go up---the better to ride out the dry spell?
|6.15.09 @ 11:03AM|#
I'm interested in what a libertarian response would be to
collapse of the US auto industry.
A sigh of relief that I don't have any investments there, together
with a feeling of satisfaction that both of our vehicles are
Japanese.
And a sublime confidence that demand for automobiles in the United
States will continue to be met. By someone.
T|6.15.09 @ 11:08AM|#
I'm interested in what a libertarian response would be to
collapse of the US auto industry.
Here's a hint: not spending over $80 billion dollars of taxpayer
money to bail out two failed business models.
Here's another hint: not rewriting bankruptcy law on the fly to
make sure your cronies get a better deal than the one they're
contractually entitled to.
BakedPenguin|6.15.09 @ 11:26AM|#
Dude, it's Texas. We do Hobo BBQ down here.
Wow. In Florida, we stick with pork and beef.
|6.15.09 @ 12:06PM|#
I'm interested in what a libertarian response would be to
collapse of the US auto industry.
In other words, "I don't care if its legal because I consider it
necessary." Did you cut Bush/Cheney any slack when THEY used that
line of argument?
ev|6.15.09 @ 2:20PM|#
Unless I'm gravely mistaken, hobo chili is a simpsons thing. Or
at least, that's where I first heard about it.
Moe: I start with the best part! The neck! And then I add secret
hobo spices!
Shit like this really bothers me, especially when cohorts don't
understand why I'm all frumpy about it. I can't renege out of the
Constitution. I don't pay taxes; I go to jail. The government gets
to renege all fucking day and I can't do anything about it.
People look at me with nonplussed eyes when I say this. They just
don't seem to understand.
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