Wednesday, November 28, 2018
I think the President has a point about General Motors
Angry over General Motors' decision to shutter several US and Canadian auto manufacturing plants, President Trump recently tweeted:
A lot of left-wing and progressive sources are claiming that this is inaccurate, and that GM has repaid all the loans given to it as part of the auto industry bailout. However, that ignores the reality that the US taxpayer lost almost $11.4 billion on the overall GM bailout package, as Pro Publica confirms. Click the image to be taken to a full-size view at the organization's Web site.
There are those who claim that the GM bankruptcy deal cost the US taxpayer a lot more than that. I think they have a point, and so does President Trump. If GM is going to shed well over 10,000 jobs in the USA, to the detriment of our economy and our society, after receiving bailout funds, loans and other assistance totaling tens of billions of dollars, then I see no reason why the company should not be required to repay that loss to the taxpayer. If it can't or won't, I think the President should withhold all subsidies, government orders, etc. from GM until such time that the loss has been made up.
GM should have been allowed to go bankrupt, IMHO, rather than rescued from a fate that (in the absence of post-bankruptcy reorganization and shedding corporate deadwood) will inevitably catch up with it again in the future. Its conduct was so egregious towards its bond-holders and creditors, and to non-union Delphi pensioners, stripping them of their assets and income, that I vowed at the time that I'd never again buy a new GM vehicle. (I had owned four of them prior to that time.) I've kept that promise, and see no reason why I should change it. This most recent development merely confirms to me that, ethically and morally speaking, I made the right decision.