Of Car Dealerships and Pacemakers – Federal Government Priority Drives Health Device Industry Down Props Up Car Dealerships

Richard Neal (D-MA) far left - takes credit for reinstating Car Dealership - GM of course - photo credit: Springfield Mass. Republican

Western Massachusetts – Two articles which appeared in the Springfield Republican, highlight the disparity in the Federal Governments commitment to job development vis a vis the nationalizing of private industry in the United States. On one hand, General Motors, a government owned entity, has recently reinstated a local car dealership which had been closed during the takeover. Richard Neal (D-MA – Hamden 2nd), was featured in an article where he takes responsibility for reinstating local car dealership, Bob Pion Pontiac in Chicopee. The article begins: “After prodding from U.S. Rep. Richard E. Neal, D-Springfield, General Motors Corp. reversed course and has reinstated Bob Pion as a Buick and GMC dealer.”, and goes on to describe how the dealership lost its status during the government “bail-out” in January. The article goes on to point out: “Pion kept the dealership going with the service department and by buying used cars at auction to sell, Donald Pion said. He has 32 employees and annual payroll of $1.4 million.

Neal, a member of the powerful House Ways & Means Committee, said he met with GM executives and asked them to review Pion’s sales statistics and profitability.”

Based on the figures include in the piece, assuming this dealership is representative of the other 1300 plus which were closed in the bailout, approximately 43,000 jobs were endangered or lost when the Government took control of the auto industry. The fact that a Congressman has the power to reinstate a specific business is chilling in that it becomes a question of human nature and the whim of a particular congressional representative and/or the fact that an election year is at hand.

On the flip side, businesses are preparing for the heavy negative impact brought about by the recently passed health care legislation. On a national level, large employers who have filed anticipated losses due to the legislation, an anticipated one billion dollars in losses which will impact hiring as well as eventually result in layoffs. Firms such as Caterpillar, AT&T, and Deer and Company are on the top of the list, however, other firms, such as those involved in the Medical Device Industry, which are smaller in scope, are also seeing immediate impacts from health care reform taxes.

In the same week, the Springfield Republican ran an article regarding the loss of revenue to the Medical Device Industry in Massachusetts. In Massachusetts alone, the industry directly employs 21,000 individuals, while smaller industry that manufacture parts for these devices employee an additional 29,000. Neal, featured in this article due to his support and yes vote on the Health Care Reform Act, apparently feels that an excise tax on an industry that is critical to the health and welfare of millions of people (Medical devise manufactures make everything from pacemakers to hip implants), was lucky to pay a smaller tax than originally proposed by the Bay State congressman. In the same city as the auto dealership the featured firm employs 200 individuals, and placed any expansion plans on hold indefinitely.

Neal’s response to Senator Scott Brown (R-M)’s legislation to repeal the Health Care Reform in order to save businesses such as medical device manufactures: :”Neal challenged Brown to find another way to pay for the reforms.”

The message Richard Neal (and his like minded cohorts in D.C.) is sending to his constituents: More Cars, fewer pacemakers! Save 32 jobs, lose 200! Perhaps if the Government takes over the medical device industry once it goes bankrupt, Neal will be on hand to reinstate that concern, unless of course, he is not re-elected in 2010.

Someone should point out to Rep. Neal that the loss of an industry due to legislation will result in less income for the Federal Government, which it needs to pay for all of this - lost jobs equal losses in tax revenue. A situation which the taxed to smithereens Massachusetts residents and businesses were well acquainted with before the Health Care plan was exported nationally.

A video found on Hillbuzz.org sums up the continuing angst felt by the general public when they see articles such as these: