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U.S. Sen. Lindsey Graham said the president’s ouster of General Motors’ CEO was a “power grab” of unprecedented proportions and said the Democratic administration is charting a course to corporate intervention that will be a disaster for the nation. Speaking in the BMW Zentrum, the company’s museum on Interstate 85 near Greer, Graham added that plenty of companies are making cars in this country without government subsidies.
By James T. Hammond
jhammond@scbiznews.com
Published March 31, 2009
U.S. Sen. Lindsey Graham slammed the ouster of General Motors CEO Rick Wagoner by President Obama as a “power grab” of unprecedented proportions and said the Democratic administration is charting a course to corporate intervention that will be a disaster for the nation.
The senior S.C. senator stepped up the Republican rhetoric against Obama’s corporate bailout proposals, asking, “How many more times will government intervene in corporate business?”
Speaking in the BMW Zentrum, the company’s museum on Interstate 85 near Greer on Monday, Graham added that plenty of companies are making cars in this country without government subsidies.
“This is the biggest power grab I’ve ever seen from a president,” Graham said.
Graham was at BMW on Monday to receive the Manufacturing Legislative Excellence award from the National Association of Manufacturers.
The ouster of Wagoner at GM was a prelude to Obama’s announcement Monday of his bailout plan for the Detroit-based American automakers.
“I’m urging the president to stay out of the business of making cars in Detroit,” Graham said. “There’s a proper role for government, but not this idea that government would provide an unlimited line of credit. I think most people are uncomfortable with a CEO being fired by politicians. We’re creating a dangerous model for this country.”
Graham said the Detroit automakers should resolve the failures of their business model in bankruptcy court.
“The best thing we could do for you is to cut your taxes,” said Graham, adding he would reduce the top corporate income tax rate from 35% to 25%.
Graham also attacked the so-called card check legislation that labor unions and their allies are seeking in Congress to facilitate organization of nonunion plants.
Business and corporate leaders and their political allies charge that the measure would spell the end of secret ballots for workers who are asked to vote on unionization.
“That would be a disastrous outcome for our country,” Graham said, labeling the card check legislation a “political payback” to unions that supported the Democratic ticket in November’s election.
“I will do everything I can to prevent it,” Graham said.
He also said that, although climate change is clearly real, he does not believe the Obama administration’s cap-and-trade system for reduction of air pollution is the answer. He said such a system would amount to a per-household tax of $3,000.
“I believe the government is charting an unsustainable path,” Graham said.
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