Dealergate 3: Targeting GOP Districts


Obama's economic fascism is killing jobs and entrepreneurship across America.

The investigation into how the apparent redistribution of Chrysler dealer franchises we reported on here and here continues. Joey Smith, Gateway Pundit, Reboot Congress and Libertarian Republican are just some of the new media warriors on the case. What the intrepid bloggers are sifting through is the toxic fallout from the Obama administration’s journey to the dark side of corporatist policy - economic fascism:

From an economic perspective, fascism meant (and means) an interventionist industrial policy, mercantilism, protectionism, and an ideology that makes the individual subservient to the state. “Ask not what the State can do for you, but what you can do for the State” is an apt description of the economic philosophy of fascism.

Here’s what has been uncovered so far:

1. There are two published lists of Chrysler dealerships. One includes the 789 dealers which will be closed by June 9. Those dealers who will be able to retain their franchises and acquire the assets of closing dealers in their areas are on the other. Both are in .PDF format.

2. An attorney for closed dealers deposed Chrysler president Jim Press and said that his impression is that the decisions on which Dealers will stay and which will go really wasn’t Chrysler’s, as the company is under considerable pressure from President Obama’s automotive task force.

3. Many of the Chrysler dealers on the closing list were heavy Republican donors. Some are sitting congressmen.

4. Among the dealers which were selected to remain in business are a number of outlets owned and operated by a partnership which includes among the partners former Clinton White House chief of staff Mack McLarty and Robert Johnson, founder of Black Entertainment Television (BET). Both have strong Democrat ties. McLarty campaigned for Obama, and Johnson has contributed heavily to Democrats, including Obama.

5. The latest finding from the closure list is that there appears to be “an extremely high correlation between dealers closing and congressional districts BHO lost”:

Texas is getting killed and Blue States are sliding by. Florida is also taking major hits and nearly all are in Republican Congressional Districts.

Little West Virginia is getting hammered.

I will know much better when I start doing all the cross reference work after I finally get the data into Excel, but that is going to take time since the data has to be formatted up manually and there are over 2000 dealers involved between the two lists.

So far what I see smells big time.

There are many moving stories emerging from the list of targeted dealerships. Some have been handed down from family generation to family generation. Many have been saddled with large debts incurred from remodeling their dealerships and investing in large inventories of vehicles and parts, both at Chrysler’s insistence. Thousands of people, including managers, sales reps, technicians, parts specialists, cashiers and those who wash the cars and sweep the floors are losing their jobs at a time when President Obama tells us that he’s creating them. You can read these stories by following the links.

The evidence to to this point is anecdotal, but when all of the data from both lists have been put into spreadsheet format, the empirical evidence will emerge. Perhaps then even the Doubting Thomases and Thomasinas will find it to be as compelling as the anecdotal evidence is revealing.

Update: An evening update of the latest developments in Dealergate is here.

- JP


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24 Comments Leave a comment

Still following this closely.

evanm Wednesday, May 27th at 2:28PM EDT (link)

You’re doing fantastic work; keep it up!

I can’t help but wonder if we’ll discover a similar trend with GM dealerships?

I hope to have a post up later today

Josh Painter Wednesday, May 27th at 4:13PM EDT (link)

about one GM dealership in particular.

- JP

“An armed society is a polite society” - Robert A. Heinlein, “Beyond This Horizon” (1942)

 
 

Yeah, Its Economic Fascism

Swamp_Yankee Wednesday, May 27th at 2:34PM EDT (link)

Obama is not practicing socialism or national socialism. To use hyperbole often turns people off and undermines the importance of the argument. The government is determined to spread the wealth around and will use the bully pulpit to pick winners and losers without ending private property. It is economic fascism.

To understand this is to understand the whole motivation behind the “green” economy. What we are seeing here, we will see a thousand fold in the future. The Dems are gong to steer wealth away from sectors dominated by Republicans, conservatives, Southerners, etc. … through a variety of means. And the old energy sectors have a huge target on their backs.

The want to bleed the oil and coal wealth dry and re-allocate it to green corridors. This has more to do with empowering Blue areas, the young, minorities and liberals as it has to doe with the environment. They will use the government to do this without nationalizing private property.

This is a frightening insight

civil_truth Wednesday, May 27th at 3:58PM EDT (link)

This goes beyond mere corporatism, where the government becomes a dominant player in so-called private businesses. Or beyond using taxpayer dollars to benefit government favored groups

This is economic war against political entities who didn’t vote for Obama, destroying their economies in order to give money and resources to states who did vote for Obama. The hope evidently is either to intimidate the remaining businesses to play ball and/or discredit the state Republican adminstration by blaming them for the failing economies in their states and rising unemployment.

 

This sounds like "NeoReconstruction."

larueladue Wednesday, May 27th at 5:57PM EDT (link)

If this is true and is absorbed by the people affected, it will be the start of the “Neo-War Between the States.” People in these areas will not take this sitting down.

And it will be a shooting war….

“Igitur qui desiderat pacem, praeparet bellum.” - Publius Flavius Vegetius Renatus (Vegetius) in “De Re Militari,” Book III.

 
 

Thanks for all the work Josh. If what you suspect

eburke Wednesday, May 27th at 2:43PM EDT (link)

(as do I) is true and there is empirical evidence that this sort of ‘pay for play’ actually happened, it’s the stuff of which viral internet stories are made and will have *huge* legs. I have a friend in UT whose extremely profitable Chrysler dealership which has been around about 35 years was closed down. And, yep, he’s a GOPer all the way.

“All that need be done for evil to triumph is for good men to do nothing.”

“Dead fish go with the flow” ~ izoneguy

“We have a Statue of Liberty not a Statue of Necessity” ~ ColdWarrior

 

regarding job losses

techsan Wednesday, May 27th at 3:02PM EDT (link)

First off, thank you for the important work. Kudos to the blogosphere that a guy can do a bit of research and share the information so widely so quickly.

Secondly, here’s the rub for me…perhaps a small nit-pick. Regarding this statement:

Thousands of people, including managers, sales reps, technicians, parts specialists, cashiers and those who wash the cars and sweep the floors are losing their jobs at a time when President Obama tells us that he’s creating them.

I’d argue this was going to happen anyhow. The real issue, as your article makes clear, is that an external entity…our U.S. government…appears to be making the decision for the CEO. Were I an investor, this would infuriate me. I would want the dealers that make money to stay open, and lop off, say, the bottom x% who are losing money. Apparently, and not unsurprisingly, politics are trumping rational business decisions.

In the end, all we have on our side of the debate are facts and history.

Politics are trumping rational business decisions

izoneguy Wednesday, May 27th at 3:09PM EDT (link)

And that is how Obama sees business. A tool to use to extend his political reach. This goes beyond even Marxism….

Maybe we should start calling it Obamism.

“When the government fears the people, there is liberty. When the people fear the government, there is tyranny.”
Thomas Jefferson

I've been using Obamunism to describe the new economy we are suffereing. nt

ddstrain Thursday, May 28th at 12:35AM EDT (link)
 

"politics are trumping rational business decisions"

skorrent1 Wednesday, May 27th at 5:22PM EDT (link)

Isn’t that the normal function of a “community organizer”?

yes...

techsan Thursday, May 28th at 12:27AM EDT (link)

they often do.

In the end, all we have on our side of the debate are facts and history.

 
 
 

Spreadsheet listing the closures is up to view

oldgeezerguy Wednesday, May 27th at 6:42PM EDT (link)

Great work!!!!!!

itrytobenice Wednesday, May 27th at 10:24PM EDT (link)

Thanks for your efforts.

The problem with America is stupidity. I’m not saying there should be capital punishment for stupidity, but why don’t we just take the safety labels off of everything and let the problem solve itself?

 
 

Outstanding, OGG!

Josh Painter Wednesday, May 27th at 7:00PM EDT (link)

- JP

“An armed society is a polite society” - Robert A. Heinlein, “Beyond This Horizon” (1942)

 

Remember: You Must Establish a Definite Trend

Section9 Wednesday, May 27th at 9:48PM EDT (link)

…for BOTH General Motors and Chrysler dealerships.

Remember that, at bottom, the people in the WH are thugs, and they do things the Chicago Way-pay to play. So, if your theory is correct, an overwhelming majority of the dealerships that stay open for both GM and Chrysler will be dealers who donated to the DNC and the Obama Campaign.

The evidence has to be overwhelming and convincing to the lay person. The media won’t investigate this because of the implications of the data. Some Republican politician, like Palin or Romney, has to be able to hang their hat on this, so you can’t be screwin’ around here.

“History will be kind to me, for I intend to write it”-Winston Churchill

 

Actually...

Josh Painter Wednesday, May 27th at 10:57PM EDT (link)

You don’t have to show that Dems were rewarded in order to show that Republicans were punished. All you have to show is that Republicans were punished. If, for example, the majority of closing dealers who donated to political campaigns donated to the GOP (which appears to be the case), then all you have to show is that the majority of dealers who will remain open are *NOT* GOP donors. They don’t have to be Dem donors.

- JP

“An armed society is a polite society” - Robert A. Heinlein, “Beyond This Horizon” (1942)

 

There's a problem with the hypothesis.

sukwoo Wednesday, May 27th at 11:30PM EDT (link)

The vast majority of ALL auto dealer political contributions go to Republicans.

http://www.fivethirtyeight.com/2009/05/news-flash-car-dealers-are-republicans.html

I was wondering when somebody would invoke that after-the-fact.

Moe Lane Thursday, May 28th at 12:54AM EDT (link)

Sparky, free hint: when you’re trying to play ‘objective observation,’ don’t use the guy who writes things like “they have obvious reasons to be pro-business, pro-tax cut, anti-green energy and anti-labor. ” Silver has his own agenda, which pretty much involves telling Democrats what they want to hear. And, surprise! - what you want to hear right now is not “the White House may have used campaign contributions to determine who lived, and who died.”

Hope that was worth burning an account over.

Kowalski: the banning...

Moe Lane Thursday, May 28th at 1:14AM EDT (link)

…was merely to get people’s attention: I could care less about the sensibilities of a three-year sleeper account holder. For everybody else planning to dive in - and merely repeating the link will earn a ban; I’m already seeing it being used as an apotropaic symbol - please be advised: the question is not What is the statistical likelihood that a car dealer contributes to Republicans? It’s Did the White House save Democratic contributors from being closed?

Besides, now it’s a matter for the politicians, anyway.

Well, Moe, I'd say that both questions are important.

I do not apologize when I do something wrong. Friday, May 29th at 12:35PM EDT (link)

If, as the raw data from FiveThirtyEight suggests, almost 90% of car dealers are (or lean) Republican, then even a randomly generated list of closings would be slanted toward Republicans, yes? (Given a bag with 90 red balls and 10 blue balls, pick 40 balls - do the math.)

Your question of whether government influence was used to “save” Democratic contributors may well be valid. I’ve seen several reports that indicate that the list of “saved” dealerships is being reviewed by folks in the blogosphere, but I haven’t seen any results.

The third question–and one that is being largely ignored–is how other business concerns came into the decision-making process. For instance, a dealer who owns multiple dealerships in multiple cities might be a better “save” than would be individual dealers in those same cities. (Economies of scale, right?) We’d also probably want to look at their business results; obviously, sales volume is the most likely tiebreaker, and that would tend to favor larger dealers over the single-location folks.

Another factor is the size of the population being served. You mentioned that “Little West Virginia is getting hammered.” My count is that 17 WV dealers are closing, while 25 are remaining open. Given that West Virginia’s population is only 1.8 million (37th of the 50 states), and that 21% of the population is under 18, that leaves roughly 1.4 million people in the likely “car buying” age group. Does that small population warrant 42 dealerships? Heck, the 25 that remain provide one dealer per 57,000 people…and only 10 WV cities have a population of more than 15,000.

I would think it entirely reasonable for a car dealer facing closure to be told the specific reasons for their selection. I don’t think it reasonable to assume government interference in that decision without some serious evidence.

This is my site, which I did not reveal to you because I actually think that you’re all knuckle-dragging theocrats.

I'm sorry, but if you're not paying attention to who is saying what...

Moe Lane Friday, May 29th at 12:42PM EDT (link)

…please don’t engage in the discussion. This is something like the I think the third time this week that I’ve had comments, statements or posts attributed to me that I didn’t make or write, and it’s starting to get annoying.

 
 
 
 
 

Um...right above my reply, you wrote:

I do not apologize when I do something wrong. Friday, May 29th at 1:54PM EDT (link)

“the question is not What is the statistical likelihood that a car dealer contributes to Republicans? It’s Did the White House save Democratic contributors from being closed?”

At least, it says “Moe Lane” in the comment…I merely suggest that we should work through the first question before approaching the second.

This is my site, which I did not reveal to you because I actually think that you’re all knuckle-dragging theocrats.

Reply To This is your friend.

Moe Lane Friday, May 29th at 1:58PM EDT (link)

You wrote, referring to me.

You mentioned that “Little West Virginia is getting hammered.”

I did not.

Again, if you can’t pay attention, don’t participate.

Now that I know what I misquoted...

wesmorgan Friday, June 5th at 4:09PM EDT (link)

…I’ll certainly apologize for misquoting you. As you can see, I thought you were referring to the two main questions, not the WV remark.

You have my apologies.

 
 
 

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