There is much ballyhooing and chest beating about the GM and Chrysler bailouts. Obama claims that the bailout saved a million jobs - that's a lie. He also claims that GM is now the number one car maker - another lie.
At most GM employs about 91,000 employees in the US. If you include suppliers maybe 400,000 employees. These jobs would have been saved regardless if GM and Chrysler would have gone through a structured bankruptcy - the rub is that the union contracts would have been replaced with a new reasonable contract.
As far as being the number one car producer, well......"Fortune magazine lists GM as smaller than Volkswagen, Daimler, Ford, and Toyota."
But there's more to this bailout:
- GM gets to carry forward 45 billion in past losses, it therefore will not pay any income tax for years.
- This violates an IRS ruling 382 for any companies going through bankruptcy.
- The bailout screwed anyone holding GM securities including pension funds - they got nada.
- The bailout really was a bailout for the UAW - they were the real winners.
- Anyone who was not a member of the UAW got dumped.
- Unions are forbidden to strike against GM and Chrysler, but not Ford.
- Ford and foreign manufacturers in US are put at a competitive disadvantage to GM.
- Obama has in essence paid $100 dollars for GM stock that is currently worth $22 - he should be fired.
This crony capitalism is Obama's version of Trickle Down Economics. The union and his cronies "got their's", the h3ll with everyone else.
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