The Campaign Spot

GM’s Biggest Profit Ever . . . Still Doesn’t Help the Taxpayers

The news this morning:

General Motors earned its largest profit ever in 2011, two years after it nearly collapsed into financial ruin . . . GM also said Thursday that its 47,500 blue-collar workers in the U.S. will get $7,000 profit-sharing checks in March.

Hmm. That’s strange. The unionized workers of GM are getting $7,000 each, while taxpayers are still on the hook. If the federal government sold its stock in GM today, taxpayers would lose $14 billion. (The fantastic site at that link calculates the loss to taxpayers based upon the current stock price.)

The Atlantic is already snarking, “Just don’t tell the Republican candidates that the bailout worked.”

Amazing how easy it is to return to profitability when the federal government gives you $60 billion, with zero interest and no particular deadline on paying it back, and lets you write off up to $45 billion in old losses.

Perhaps we’ll be able to find some military use for Government Motors’ revolutionary new mobile incendiary device:


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