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Saturday, October 22, 2016

Washington (AFP) – The U.S. Treasury sold its last shares in General Motors on Monday, ending the dramatic rescue of the auto giant at the height of the financial crisis five years ago.

The Treasury took a loss of more that $10 billion on the $49.5 billion bailout, but said that saving the U.S. auto industry, the jobs of millions of auto workers and the pensions of many retirees was worth it.

The 2008 rescue, controversial at the time, “helped stabilize the auto industry, and prevent another Great Depression,” Treasury Secretary Jacob Lew said.

He said that President Barack Obama “understood that inaction could have cost the broader economy more than one million jobs, billions in lost personal savings, and significantly reduced economic production.

“As a result of his efforts, which built on those of the previous administration, more than 370,000 new auto jobs have been created, and all three US automakers are profitable, competitive, and growing,” he added.

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Copyright 2013 The National Memo
  • centerroad

    Lost in this discussion is the large profit the gov’t made. We saved one million jobs which would have gone to long term unemployment, costing taxpayers $20billion/yr for 3 yearts,, a $60billion loss. Instead those workers pay taxes of about $10billion/yr ongoing, but just in the 3 years it totals $30/billion in tax revenue, and GM also paid taxes, although not much.

    So in direct savings and benefits, $90/billion profit less the $10billion stock loss.This doesnt even count the savings from the long term unemployed, the avoided foreclosure costs on peoples homes, and secondary taxes paid by those workers on things like sales taxes, gas taxes, etc.

    What is the matter with the Democrats for not making this case front and center in any discussion of the bailout?

    • InsideEye

      What happened to the remainder of Detroit.

      • centerroad

        Your ilogic completely escapes me.

  • Chumba Wumba

    Since liberty cannot survive if the vast majority of people do not understand its benefits, it is critical that liberty’s eternal and immutable principles be as widely disseminated as possible.