Posted on 11/18/2010 6:18:35 AM PST by alg1921
Study says auto bailout saved 1.4 million jobs By Ed Brayton 11/18/10 7:15 AM
A new study by the Center for Automotive Research in Ann Arbor concludes that the bailout of General Motors and Chrysler in 2009, with $85 billion in taxpayer money going to the two companies to help them survive the restructuring process of managed bankruptcies, saved 1.4 million jobs. The Detroit News reports:
Most of the jobs — 1.14 million — were saved in 2009, during the low-point of the industry’s severe downturn. But another 314,400 were saved in 2010, the Center said Wednesday.
“The government intervention prevented additional personal income losses totaling $71.9 billion for 2009 and $24.6 billion for 2010,” the center said in a statement.
“The net impact to the federal government—in terms of changes in transfer payments, social security receipts and personal income taxes—was $21.6 billion in 2009 and $7 billion in 2010.”
But that is merely the tip of the iceberg. The cost to state and local governments for the sudden increase in Medicaid, unemployment benefits, loss of property taxes and other consequences of allowing the two companies to fail would have been even higher.
Add in the $29 billion cost of taking over the pensions of the two companies by the federal Pension Benefit Guaranty Corporation and the effect of another wave of foreclosures that would have been triggered and the bailout was a bargain.
Do not try and fool the Freepers, that is why I love it here.
I guess the reporter who wrote this believes then that the cost of allowing ANY company to go broke far exceeds the cost of just having the taxpayer write a check to bail them out.
I mean, when you chose to overlook the simple fact that OTHER COMPANIES would have taken up the slack, created new jobs, hired others, and in fact someone else would have purchased the chapter 11 company and turned it into an efficient business, of course you can justify spending taxpayer money to bail out EVERY failing company.
Let’s say you make widgets, but very costly widgets that don’t work well and you make them at an inflated price. Should the rest of us bail you out or should the next guy that is making better widgets cheaper pick up the slack when you fold your company, or do you (seriously) believe that if you go broke the demand for the widgets you put into the system disappears.....
Then I suggest it’s Flowers for alg1921 time. :)
Plus, there are the unintended and difficult to trace consequences in the job market, of bailing them out. Saving a job "here", might have cost another (or more) jobs "there". These studies are crap.
"..The Michigan Messenger is published by The American Independent News Network, a 501(c)(3) nonprofit corporation..."
A Left-wing Journalistic Plant in the Conservative Movement
"..The background of the Washington Independent, where he went from Reason magazine before he came to the Post, is interesting in this regard. The Washington Independent is published by the American Independent News Network, which began as the Center for Independent Media. Their network includes:
* The Colorado Independent
* The Iowa Independent
* The Michigan Messenger
* The Minnesota Independent
* The New Mexico Independent
* The Washington Independent
These publications are hardly “independent” of the left, as you can see from a list of funders. They include the Open Society Institute (funded by billionaire George Soros), the Carsey Family Foundation (big funders of the Soros-funded Free Press), the National Education Association, the Tides Foundation, the Wallace Global Fund (named after Progressive Party presidential candidate Henry Wallace), and the Gay and Lesbian Fund of Colorado (funded by gay rights multi-millionaire Tim Gill)..."
Nothing in "The Michigan Messenger" is credible and Free Republic is not the venue for Soros or Unionist sludge.
So, you’re a UAW member?
Not buying this figure for one second-—
How many people lost their jobs at dealerships that NObama closed because they were contributors to Republicans???
This was a UNION handout. Pure & simple.
Welcome to FR, but if you are another union supporter- you will have a hard row to hoe here at FR.
About 47% of the Center for Automotive Research’s income comes directly from government”
Another Government propaganda provider.
There is nothing but FAIL here.
The free market forces should have been allowed to manifest themselves.
The UAW was propped up under the guise of saving the two automakers. All the bailout did was prolong the suffering. Nothing has been fixed with the auto industry.
The UAW parasites are just switching hosts. Going from the auto makers to the taxpayers.
FU UAW!
IBTZ
Yes, because if not for the bailout, nobody would have bought any cars, and no other manufacturer could possibly have picked up the business, employing those people and generating that tax revenue.
Piss off newb.
LLS
*wipes eyes* Wow, that was a good one. Wonder how much government funding they got to tell that whopper.
The auto bailout was a bad thing.
It propped up a failed business model, I.E. Unions demanding higher and higher concessions for less work, less quality work, and less actual value without giving anything in return.
It only delayed the inevitable.
It took money OUT of the economy to prop up UNION BOSSES.
That is all it did, a big fat payoff to union fat cats that thrive off the work and earnings of others.
And for what?
To continue down the same tired road on a failed business model.
Notice how Obama screamed about how bad capitalism is, yet said absolutely nothing about the auto companies going bankrupt.
The idiot Dems want to raise taxes to close the ‘deficit’ when in reality what needs to be done is cut spending.
Like, how about union boss salaries, congress critter salaries, senator salaries, cut funding to the programs that idiot boy Obama pushed.
That woul;d go a long way towards cutting the deficit.
Note how the Dims always want to raise taxes, they never once consider lowering spending.
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