Obama Hits Auto Execs As "Tone Deaf," Demands "Ethic Of Responsibility" For Business Bigs
Although some are worried that Barack Obama is betraying liberals, he sounded some sharply populist tones in an interview set to air on ABC tonight, hitting auto executives as "tone deaf," calling on bank execs to forgo bonuses, and asserting that business leaders have a responsibility to the "community."
Obama also called for a return to an "ethic of responsibility." ABC sent out advance excerpts of the interview, and the exchange is worth quoting in full:
BARBARA WALTERS: How did you feel when you read about the three heads of the auto companies taking private planes to Washington?BARACK OBAMA: Well, I thought maybe they're a little tone deaf to what's happening in America right now. And this has been a chronic problem, not just for the auto industry, I mean, we're sort of focused on them. But I think it's been a problem for the captains of industry, generally.
When people are pulling down hundred-million-dollar bonuses on Wall Street, and taking enormous risks with other people's money, that indicates a sense that you don't have any perspective on what's happening to ordinary Americans. When the auto makers are getting paid far more than their counterparts at Toyota, or at Honda, and yet, they're losing money a lot faster than Japanese auto makers are, that tells me that they're not seeing what's going on out there, and one of the things I hope my presidency helps to usher in is a, a return to an ethic of responsibility.
That if you're placed in a position of power, then you've got responsibilities to your workers. You've got a responsibility to your community. Your share holders. That if -- there's got to be a point where you say, 'You know what, I have enough, and now I'm in this position of responsibility, let me make sure that I'm doing right by people, and, and acting in a way that is responsible.' And that's true, by the way, for members of Congress, that's true for the president, that's true for Cabinet members, that's true for parents.
I want all of us to start thinking a little bit more, not just about what's good for me, but let's start thinking about what's good for our children, what's good for our country. The more we do that, the better off we're going to be.
WALTERS: Should bank executives -- it's almost Christmas time -- forgo their bonuses?
OBAMA: I think they should. That's an example of taking responsibility. I think that if you are already worth tens of millions of dollars, and you are having to lay off workers, the least you can do is say, "I'm willing to make some sacrifice as well, because I recognize that there are people who are a lot less well off, who are going through some pretty tough times."
Spoken like the true socialist that Obama is. Also note that he's putting the call for responsibility to the "community" in a patriotic context.
In all seriousness, while this is just rhetorical and the devil will be in the policy details, the tone Obama struck here is certainly encouraging. It's another sign of just how sharply the political landscape has shifted amid the crisis, as well as a reminder of how great an opportunity to prove the virtues of liberal ideas this moment really represents.
In due time, Obama's nuanced and articulate responses to questions won't dazzle me quite as much as they do, but Bush is still president, so when I see how he rifts on the simple question about the executives flying in on their private I am dazzled.
November 26, 2008 3:58 PM | Reply | Permalink
agree, on the top of his game here
November 26, 2008 4:00 PM | Reply | Permalink
Will liberals become the new values voters?
I agree that because this crisis is so severe, it does provide an opportunity for someone such as Obama to point the way to a new understanding of what it means to be a citizen, a way that is associated with liberal values, such as peace and justice, but also prosperity.
November 26, 2008 4:39 PM | Reply | Permalink
Well, somebody's gotta knock down this canard that Obama really is the liberal we voted for, so I'll just say this:
How dare he lump the auto industry, whose execs are scum but which manufactures actual tangible useful products that help the economy, with Wall Street, whose execs get paid a lot more and are even more scummy but which produces nothing but worthless paper?
Can we impeach him yet?
November 26, 2008 4:04 PM | Reply | Permalink
I don't know about impeach. Maybe annul!
November 26, 2008 4:21 PM | Reply | Permalink
get over it.
November 26, 2008 9:19 PM | Reply | Permalink
Because, unfortunately, if the banks go down, I can't make payroll, and how will I pay my employees? It will be the same for all businesses. Banks don't "make" anything, but every other business needs them. Whereas if the American auto industry goes down, that will impact fewer people.
That being said, the American auto industry cannot go under. It's important that we maintain a strong manufacturing base.
November 27, 2008 5:08 PM | Reply | Permalink
Here are the pictures of the Preside-E and family, images of the next first family on the heels of thanksgiving.
http://www.huffingtonpost.com/2008/11/26/obama-familys-thanksgivin_n_146725.html
The president-elect, dressed casually in a leather jacket, black scarf and khaki pants, was in a jovial mood, calling out "happy thanksgiving" and telling everyone "you can call me Barack
November 26, 2008 4:06 PM | Reply | Permalink
I like the part where the kids in the school across the way see him out there and put up the sign in the window saying they love the prez. So Obama has the "surprised" secret service go into the school and bring the students down to the auditorium so Obama could do a little Q&A.
November 26, 2008 4:28 PM | Reply | Permalink
I know these things aren't a big deal, but they're big deal- you know what I mean?
He definetly dazzles as you said.
November 26, 2008 4:50 PM | Reply | Permalink
Looking at the faces of those kids (and the adults) - these things are big deal.
November 26, 2008 4:55 PM | Reply | Permalink
My god, yes. I can't see that "we love our Prez (room 203)" sign without tearing up. It's silly, but...it really isn't.
November 26, 2008 5:27 PM | Reply | Permalink
I was listening to an interview with William Ford yesterday on All Things Considered and he was asked about Ford CEO Alan Mullaly's comment on his $22 million dollar salary (when he was asked about it during his testimony before Congress he said he was "OK with it.") Bill Ford doesn't take any salary as the Chairman. Ford said "We're going to talk to him about that." At least some of them aren't totally tone deaf!
November 26, 2008 4:18 PM | Reply | Permalink
I heard that interview, too. And I think it should be noted that Ford Company was not asking for a bailout like the other two, but the promise of a line of credit should they need to access funds in the future. Currently Ford Company has another liquidity to keep going. And they are already in the process of moving their European fuel efficient cars into production here in the States. Just thought that Ford should get credit where credit is due.
November 26, 2008 4:23 PM | Reply | Permalink
Yep. While I've never owned an American brand car (growing up in MI I knew some of the assembly line workers and heard too many horror stories) it sounds as if Ford MoCo pretty much has its ducks in a row. I'm thinking Bill Ford regretted the decision to lump Ford in with Crysler and GM when going to Congress.
November 26, 2008 4:30 PM | Reply | Permalink
And he must have said a variation of "We going to talk/are talking to him about that" three times. So it seems there is some internal pressure going on there about reforming the executive status.
November 26, 2008 4:34 PM | Reply | Permalink
Can we stop with the US Auto Companies and their workers make bad vehicles! Let's do a history check--all automakers made crappy products until about the mid 1980's when Toyota and Honda finally got quality right. Ford followed suit and had some of the best quality vehicles in the late 1980's to early 1990's.
I would agree the US automakers dropped, but now they are making a comeback with Ford's quality equal to that of Toyota and Honda.
This crappy vehicle canard has to stop. Otherwise, I like your post.
November 27, 2008 6:25 AM | Reply | Permalink
Quality isn't the issue these days, it's market awareness. US automakers bet the farm on SUVs 10 years ago and apparently either completely missed or simply ignored the public's call for more gas-efficient vehicles. Even now, the automakers are pushing not smaller cars but "hybrid" SUVs and "crossovers," and crowing about they get 21 MPG in the city. Either they still haven't learned to listen to the market or they've painted themselves into a such a corner that they have few options but to keep flogging those gas-guzzling heaps. Either way, it represents a failure of executive vision and leadership that seems rather unique to the U.S. auto industry.
November 27, 2008 10:13 AM | Reply | Permalink
I don't think the crossover hybrid SUV's are really an issue because the Ford Escape and Mercury Mariner sell out every year. There is a waiting list. This product is not new and has been on the market a few years.
Barack Obama has one.
November 27, 2008 12:59 PM | Reply | Permalink
Last year on holiday, I rented a Ford Escape Hybrid. It was a terrific car. I think it's going to be my next new automobile, unless the Volt is ridiculously awesome.
(Right now I drive a 2003 Toyota Prius, and I love it so much I briefly considered naming it. But then my friends told me that was weird...)
I'm writing this comment in case there's anyone left in America with money who's considering an automobile purchase. The Ford Escape Hybrid. [I am not a paid endorsement.]
November 27, 2008 5:17 PM | Reply | Permalink
Don't be confused by that "doesn't take a salary" line. Executives at this level have many components to their compensation package, salary being just one (often small) part of it. There are all kinds of other things that go into what an exec earns such as stock options (maybe not so good to be getting now but who knows what the future will bring), expense accounts, low interest loans, deferred payments and probably others being invented right now to get around the letter and spirit of the law and the tenor of the times. You can be sure that none of these guys or their families, chauffeurs, cooks, housekeepers or nannies is going hungry at any of their multiple homes.
November 27, 2008 12:11 AM | Reply | Permalink
This made my day:
http://www.huffingtonpost.com/2008/11/26/al-qaeda-condemns-pro-oba_n_146706.html
Are we a day away from al-Qaeda accusing Obama of "playing the race card from the bottom of the deck"?
November 26, 2008 4:19 PM | Reply | Permalink
Sounds like that's what they are already doing. Interesting link, btw.
November 26, 2008 4:26 PM | Reply | Permalink
LOL! Thanks!!
November 26, 2008 4:32 PM | Reply | Permalink
You this is the second time Obama-Biden have expressed community-awareness as in part patriotism. The reaction in the campaign was revulsion by the right that they are entitled to everything they can get....kind of like the cattle barons of the old West.
I think this will begin creating a line in the sand where the rich, the corporate rich will be illuminated as un-American if they are not joining in on saving the Union.
This will be interesting as it is another sign of the Uprising that is permeating throughout the land. For the finance world---this is the consequence of nationalizing your industry, it is more than shareholders but community and moral responsibility to the community.
It will be interesting to see how the International Globalist corporate class will try to negotiate this. Where will they find safe harbor?
November 26, 2008 5:24 PM | Reply | Permalink
Good call on asking them to forgo bonuses - he really wants to convey that we're all in this together. We have to think of ourselves as more than individuals.
-- Cris
My site: Obama Wallpaper Archive
November 26, 2008 5:28 PM | Reply | Permalink
I come to TPM to learn and have my voice heard. Or at least pretend to have it heard. I really come here to read stories and comments and many times I hear someone talking to me, voicing my sentiments. This President-Elect will, at times, voice my sentiments. For eight long years I have never heard my sentiments coming from the White House on anything. When Obama does not exactly voice my sentiments, he makes some point that I have to consider and research and consider some more. W could never put 2 sentences together, even in front of a teleprompter and he never spoke to Americans like he was speaking to adults.
November 26, 2008 5:56 PM | Reply | Permalink
Heady isn't it
November 26, 2008 7:18 PM | Reply | Permalink
I understand dday. After a lifetime of disappointment and cynicism, I feel like a kid again. I used to have an LP (Long Playing) record of JFK's speeches I would listen to over and over again. I feel young again.
I only hope we don't fall off the abyss before Inauguration Day.
November 26, 2008 9:09 PM | Reply | Permalink
I agree with Obama. It doesn't make sense to make 20 million+ in salary and take bonuses costing billions of dollars and then lay people off and ask for a bailout on top of that. It's just not right. Companies in trouble have no business giving themselves bonuses. And I definitely feel it's unfair to the workers and to the shareholders to take a bonus. Execs are being paid in excessive amounts for this economy as it is. Bailouts should restrict those companies from giving themselves bonuses.
November 26, 2008 7:22 PM | Reply | Permalink
While rest of pols and teevee media are expressing faux outrage over the auto presidents/czars, I love the way this guy pivots from mild scolding (tone-deaf) to what is required to be done by the so-called captains of the industry. He could have easily poured scorn and derision on these guys to please the mass but he didn't.
Also, buried in the message, is a subtle & nuanced call for americans, especially the pols, to tighten their belts.
November 26, 2008 9:04 PM | Reply | Permalink
Obama outright calling Bush a "lame duck" is probably something he shouldn't say, no matter how true it is.
November 26, 2008 10:13 PM | Reply | Permalink
Normally I would agree. But check out the look in Bush's eyes. Lame? Hell, this guy has already been to the taxidermist. I think Obama is having a hard time hiding his disgust.
November 26, 2008 10:40 PM | Reply | Permalink
Many of us are having a hard time hiding our disgust (or just don't try).
November 27, 2008 6:05 PM | Reply | Permalink
Lame is not the word for Shrub. I honestly thought the man did as little as possible before but now I know better. If he does any less he will be into the negative life range. The economy is going to hell in a handbasket and this bird says not to overregulate? Is he talking to the American people? Like Sarah - Shrub spends more time hanging around turkeys than trying to help the citizens he is supposed to be leading. Obama is exhibiting extraordinary restraint if all he calls Bush is a lame duck. I thought it couldn't happen but I really am completely disappointed in Shrub's behavior over the economy.
November 27, 2008 6:16 PM | Reply | Permalink
while this is just rhetorical and the devil will be in the policy details...
Not sure there's any need for a caveat here. Most of what Obama talked about was not policy at all, merely shaming the "captains of industry" a bit. If, by focusing unwelcome attention on their mistakes and their wealth in the midst of the crisis, Obama maneuvers the leaders of these industries into voluntarily giving up their bonuses...well, that's a hell of a lot easier than writing that into legislation.
Besides, when's the last time a President asked corporate heads to sacrifice anything?
November 26, 2008 10:17 PM | Reply | Permalink
"Ask not what your country can do for you--ask what you can do for your country."
November 26, 2008 11:32 PM | Reply | Permalink
"Ethics of responsibility?"
Sure---just ask Joe Lieberman!
"Change you can believe in" can now be filed with those other historic flim-flams: "A chicken in every pot" [Herbert Hoover, 1928], "He kept us out of war" [Woodrow Wilson, 1916], "Compassionate Conservatism" [Bush, Junior, 2000].
November 27, 2008 1:03 AM | Reply | Permalink
gosh, you're right - Joe Lieberman's fate IS more important than attending to the economy . . .
November 27, 2008 8:18 AM | Reply | Permalink
I don't think it's "socialist" to forgo ones million dollar bonus when your company is going bankrupt. It's about time industry leaders set an example of how to behave. Even in the best of times their compensation is WAY out of proportion...this is all about class warfare and there's more of us than them. Off with their heads! There's nothing wrong with proportion and a sense of fairness. Obama is right on! Glutenous greed in the face of millions of people being out of work is simply poor judgement and lousy taste!
November 27, 2008 2:59 AM | Reply | Permalink
As always Obama is saying what needs to be said, and how it needs to be delivered.
Besides, what exactly do these CEO's and high profile exec's do that warrants such salarys? I'd wager they don't have their nose to the grindstone 25 hours a day 8 days a week to justify such income.
November 27, 2008 6:28 AM | Reply | Permalink
If I didn't know any better, I would think Obama got his talking points directly from organized labor. This is something the Unions have been talking about for years--the exhorbitant pay of executives. Even the AFL-CIO website has an "Executive Paywatch" section.
Also, the community aspect is something the UAW has been preaching to auto executives for years. UAW-Ford (and maybe at other companies) have negotiated to have union members perform community service (if there is a layoff). A large contingent of organized labor went to New Orleans to help after Hurricane Katrina as part of community work and outreach which was organized by the UAW-Ford.
One other comment, Bill Ford,Jr., is very socially responsible. He was behind starting Ford's research into electric vehicles (1990's) and having environmental friendly manufacturing facilities (the new Rouge complex).
November 27, 2008 6:31 AM | Reply | Permalink
I agree with what Obama said to walters during his inteview. The captain's of industry should be more responsible to teir employees and not accept their bonuses. how can you accept bonuses after approaching Congress about needing financial asistance? You obviously failed at your job. However, referring to Obama as a Socialist was uncalled for. Where is the Socialism at? Since when is asking CEO's to be held accountable for their decisions considered "socialism." Enough all ready!
November 27, 2008 11:50 AM | Reply | Permalink
I am from Michigan (but drive a Toyota). My dad worked on the assembly line for over 40 years. I do not live in the Detroit area. So much for background and biases.
The Detroit newspapers are filled with articles that make the point that the auto execs went to Washington and were raked over the coals and told to go home and come up with a business plan as to why they deserved the help and what they had in mind for improvement and long term viability. The banks (notably CITI) and insurance companies (notably AIG) seemed to get the money without the lecture or strings. In response to these articles the comments in the Detroit papers are largely favorable to this point of view.
My view is it is perfectly understandable and productive for Congress to ask for a plan and accountability for the auto companies. That is the way it should be in my estimation. But why is this not evident for insurance and banking - they do seem to be getting quick money with few lectures or strings. Why the difference?
November 27, 2008 4:30 PM | Reply | Permalink
I just watched the excerpt from the interview. It's silly for ABC to say 'how hard it is to give up his blackberry' as though it's a toy he wants to play with. He stipulated that he wants an outside connection to the world around him other than his 12 main advisers. That seems such a great thing to have a President who wants to find out things for himself, possibly avoiding all the bad intelligence the previous Prez was susceptible to.
November 27, 2008 6:57 PM | Reply | Permalink