Granholm's name pops up in Obama Cabinet discussions
Hillsdale professor analyzes likelihood of Mich. governor landing a position
Brandon Muri
Issue date: 11/20/08 Section: Beyond
Wolfram pointed out that her trend of "stumbling around tax policies" has not only raised taxes but also created uncertainty about what business taxes will be.
"Regulatory burdens and government involvement in picking winners and losers throughout her tenure has resulted in the worst economic climate in the nation," he said.
As to whether Granholm's position on the economic transition advisory board would have any effect on her recent appeals for a Detroit bailout, Boyd was quick to clarify:
"We are talking about a loan," she said, "not a bailout - this is money the auto manufacturers will eventually pay back."
Wolfram, whom Gov. Granholm once heatedly called a "traitor" after a column he wrote for the Wall Street Journal criticized her economic policies, remains skeptical.
After consulting GM stock on the Web, Wolfram pointed out in January 2004, the Detroit company's shares sat at $55 per unit; today, a unit of GM stock sits under $3.
"What this tells you is the market does not want to invest in these companies - you probably don't want to invest in these companies, so Granholm says, 'We are going to take your money and give it to them anyhow,' " Wolfram said.
The likelihood of the auto companies paying the money back was about "zero," Wolfram said.
"And the $25 billion she is suggesting is just the starting point," Wolfram said. "Barney Frank [Chairman of House Financial Services Committee] said on NPR this morning that they just wanted $25 billion until March…then they would ask for more," he said.
Wolfram predicted that, despite Granholm's position on the board, Republicans will be able to stymie the suggested load until January, when he said the new president will push it through.
"Regulatory burdens and government involvement in picking winners and losers throughout her tenure has resulted in the worst economic climate in the nation," he said.
As to whether Granholm's position on the economic transition advisory board would have any effect on her recent appeals for a Detroit bailout, Boyd was quick to clarify:
"We are talking about a loan," she said, "not a bailout - this is money the auto manufacturers will eventually pay back."
Wolfram, whom Gov. Granholm once heatedly called a "traitor" after a column he wrote for the Wall Street Journal criticized her economic policies, remains skeptical.
After consulting GM stock on the Web, Wolfram pointed out in January 2004, the Detroit company's shares sat at $55 per unit; today, a unit of GM stock sits under $3.
"What this tells you is the market does not want to invest in these companies - you probably don't want to invest in these companies, so Granholm says, 'We are going to take your money and give it to them anyhow,' " Wolfram said.
The likelihood of the auto companies paying the money back was about "zero," Wolfram said.
"And the $25 billion she is suggesting is just the starting point," Wolfram said. "Barney Frank [Chairman of House Financial Services Committee] said on NPR this morning that they just wanted $25 billion until March…then they would ask for more," he said.
Wolfram predicted that, despite Granholm's position on the board, Republicans will be able to stymie the suggested load until January, when he said the new president will push it through.
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