Bailing out GM also was socialism, not free market. There is a reason they needed bailing out...
And, the money they are making now, it's from selling gas guzzlers...
Actually is was quite capitalist. Remember that capitalism and laissez-faire are not the same thing. As we discussed before, the rich saved their rich buddies.
Besides, this is not the first time the government has saved a company or a bank from collapse. They saved Penn Central Railroad back in 1970, and it bailed out Lockheed back in 1971. And then there was the famous salvation of Chrysler in 1980.
If GM can't compete without taxpayer assistance, screw them. I don't get any interest free $50B bail outs. That's not at no cost when we are $14T in debt, and our budget deficit is over $1T/year.
You realize that most of the bailouts are already paid back to the government, right? Only a small fraction (though still a huge amount of actual money) is "missing."
I find that I agree with Kochman on this. Bailing out the companies didn't really "Save Jobs" it just delayed the inevitable.
It made the transition smoother, instead of sudden. Sudden things are dangerous. It probably bought them a few more years of business, and that's a few more years that a few hundred thousand industrial workers still have jobs. That's pretty worth it.
As for the bank bailouts, our resident economist, JH, posted something rather fun a few days after those bailouts:
http://forums.civfanatics.com/showthread.php?t=309989
On Thursday at 11:00 a.m. the Federal Reserve noticed a tremendous draw-down of money market accounts in the U.S., to the tune of $550 billion was being drawn out in the matter of an hour or two. The Treasury opened up its window to help and pumped a $105 billion in the system and quickly realized that they could not stem the tide. We were having an electronic run on the banks. They decided to close the operation, close down the money accounts and announce a guarantee of $250,000 per account so there wouldn't be further panic out there.
If they had not done that, their estimation is that by 2:00 p.m. that afternoon, $5.5 trillion would have been drawn out of the money market system of the U.S., would have collapsed the entire economy of the U.S., and within 24 hours the world economy would have collapsed. It would have been the end of our economic system and our political system as we know it.
So the bank bailout was quite necessary to save your capitalism.
Hahaha, who do you think gives campaign donations to socialists? Poor people?
Hahaha, who do you think gives campaign donations to socialists?
Rich people?
We didn't make them change anything
Yes they did!
The President announced that the administration would use TARP money to bailout GM and Chrysler. Ford Motor Company did not make a request. The "Fact Sheet" from the Bush administration states that GM and Chrysler will receive $13.4 Billion from TARP funds immediately and another $4 Billion in February if Congress approves the second tranche of TARP funds. There are a series of "conditions", most of which are illusory. Some are not however. First, the real conditions: limits on executive pay and perks, warrants for non-voting stock, government debt is senior, government can block any large deals (over $100M), no dividends. The illusory conditions request that the companies "use the funds to become viable" and set goals and targets for viability.
http://lawprofessors.typepad.com/business_law/2008/12/gm-and-chrysler.html
And get this: GM paid its loan back
early.
You can get a Japanese car, of the same quality/type... for about $2k less, on average.
Why buy american?
To support American jobs? I thought you were some sort of American nationalist? Is the
communist really defending American jobs more than you?