Failure of Phil
Market mechanisms had failed.
Hartmarx Clothing Co. was in dire financial straights, the jobs of hundreds was on the cutting block. Congressman Phil Hare wanted to save his old job and make his new one seem useful. This could be that one time where economic optimism was given back to a stagnating community. In that familiar place, just down the street from the abandoned Case plant, this was Phil’s chance. Here was his old job at stake–he knows at least 434 friends in Washington who are in the suit market. Even the President buys Hartmarx suits. All balance sheets aside, they deserve their jobs, right?
Hare was going to save a failing company with a personal photographer and a press release. Those 350 Rock Island employees would have job security for “another 120 years.” How? Force Wells Fargo to stabilize. Inject credit that only exists on paper. Ignore operating costs.
Reality hit. Profit and loss still exists. Swapping debt like a hot potato merely changes the name on the Chapter 11 papers.
“The millions of dollars in additional costs due to this proved too great to allow a deal to go forward that would keep the company intact,” Hare said. “Unfortunately, the Seaford plant and its workers are the victims of this gross mismanagement.”
It was only after the fact that this Congressman realized it takes more than an op-ed to save a failing company.
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Illinois for Growth: Phil Hare’s Mission Accomplished
QCExaminer on Local Blog Reactions
The Scoundrel: Phil Hare Strikes Out
Jonathan, I can't agree more.
Phil makes it a point to save jobs, and instead ruins them. This goes to show the failure of politicians who go into businesses and try to fix matters.
Free-market, non interventionist economic policies really do work. Congressman Hare mudding into things he shouldn't makes the situation all the more complicated and ends up in epic failure! I'm so disappointed in my Congressman, that's for certain.
Here's a clip from the Dispatch article:
'Rep. Hare was the guest of honor at a celebration at Seaford in late-June celebrating a U.S. Bankruptcy Court decision to allow Hartmarx to liquidate its assets. It was thought at that time the sale would save Seaford's jobs.'
Well, if Phil Hare can't save his own company he was employed at, how will he save the 17th District???
Mike Moehlenhof
7 Aug 09 at 9:04 pm
http://3.bp.blogspot.com/_3veXO2OYylA/Sn5CbJvC8YI/AAAAAAAAADE/bkTkE78xSyo/s1600-h/Hare.mission.accomplished.jpg
This sums it up. Phil Hare is no different than any other politician with empty promises.
I can't believe that the 17th has been voting this guy in. It is truly a shame.
Illinois for Growth
10 Aug 09 at 12:48 am
LOL lets see if this post makes it or if it winds up somewhere in blog hell with my previous post.
First excellent post.
Now on with the show this it:
I think Phil Hare is a putz. It is just my opinion but I despise Lane Evans and any politician that has Evans links starts below my doghouse level and has to earn themselves a higher consideration. Philobluster has not done that. In my opinion this was a dog and pony show Phil did for the cameras. He looks good for his adoring public for pretending to fight the big bad business types. You cannot bully a financial organization to be profitable. And unless you have untold wealth to pump in to a failing company it is going to die. I have watched companies come and go, bad business policy is still bad business policy.
One of the things I said early in the bailout programs was where was all this concern when electronics companies were biting the dust. At one time the US was a major player in the television/electronics industry. Now there are two companies that build televisions in the US Vizio and Curtis Mathias (which only has one small factory left in Texas. Every other major manufacturer moved or went out of business. RCA is an excellent example. US name, became a French Corporation decades ago and is farmed out to a Chinese Corporation. Saving Seaford was a political move for Hare, but if he was truly attempting to save the company, he was tricked by his own hubris and he failed badly. I believe he knew he could not save the company but he just wanted a show for his political worshipers.
thescoundrel
14 Aug 09 at 4:31 pm
[...] Republican Long time no post. John Deere is on a hiring freeze, people are losing their jobs left and right, and as unemployment hits 11% in Illinois the RICO Board* voted to give themselves a 4% [...]
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