Last week, a letter from the CEO of Lacks Enterprises to his employees came to light. The contents of this letter were quite distressing to the employees. He encouraged his employees to vote against Obama or else they would witness their paychecks being cut.
He cited several reasons for this;
- His decision to pass along health care costs to the employees
- Implied that future bonuses would be cut to pay for “additional tax increases”
- and “It is important that in November you vote to improve your standard of living and that will be through smaller government and less government”
What Mr Lacks left out was that the “additional tax increases” would not need to be paid unless he chose to extract them from the company for CEO bonuses, as taxes are on money not invested into the company. He also seemed to have missed what it is that his company actually does:
Yes, Lacks Enterprises makes automobile parts! Of course, Mr Lacks claims that the auto bailout had nothing to do with his companies 3 years of straight growth, stating “We survived because of our business model and the money we have in the bank to survive these downturns.”
Lacks Enterprises counts as its customers such entities as General Motors, making trim pieces for vehicles as diverse as the Buick Regal and Chevy Volt. Without the bailout, Lacks Enterprises would have lost a huge portion of its income, and the Volt would never have hit the market without the large government incentive, which paid for Lacks Enterprises development of the components they now supply for the vehicle. They did not survive due to their business model, they would have had no business at all. The US facilities for other companies, such as Mercedes-Benz and BMW, also Lacks Enterprises customers, would have shut down without the bailout as well, cutting off his good fortune.
It has been such good fortune for the company that Lacks Enterprises is now building a new $31.9 million manufacturing facility, thanks to an incentive given by the Michigan Economic Development Corp. MEDC is a public-private partnership to encourage development in the state of Michigan and funded in part by the Obama stimulus.
Richard Lacks demonstrates a common failing of the right-wing, the attitude of “I’ve got mine, screw the rest of you.” His claims that he survived due to his own skill, and that the government had nothing to do with it is an outright lie. But is he lying to us, or is he lying to himself as well?