• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Disturbing Auto Industry #s

    Lynne Kiesling highlights these daunting numbers from David Yermack’s WSJ piece:

    • GM and Ford are two companies that made the most money-losing investments in the 1980s; between them they “destroyed $110 billion in capital” in the decade, according to an analysis from the careful and renowned economist Michael Jensen.

    • Over the most recent decade, “the capital destruction by GM has been breathtaking,” $182 billion, and Yermack estimates that the aggregate capital investment in GM and Ford since 1980 has let to a net reduction in capital of $465 billion.

    • This is what I find particularly disturbing: with that $465 billion, “GM and Ford could have closed their own facilities and acquired all of the shares of Honda, Toyota, Nissan, and Volkswagen.”

    • “When a company makes money-losing investments, the cost falls upon all of society.” This observation means that we have already reduced our future economic well-being by $465 billion by his calculations, due to the persistence of these firms and their poor business decisions.

    Posted in Economics [slideshow_deploy]

    3 Responses to Disturbing Auto Industry #s

    1. TedN, St. Petersburg says:

      Ford offers medical benefits to those who choose to undergo sex change operations including mental health counseling, hormone therapy, medical visits, and short-term disability after surgical procedures for employees who desire to change their sex (link below).

       

      AFA announcement on Ford http://www.afa.net/emails/transform.asp?x=ford_12

    2. Pingback: findcheapinsurance » Blog Archive » Disturbing Auto Industry #s » The Foundry

    3. Pingback: Disturbing Auto Industry #s » The Foundry at Voter Fraud On Best Political Blogs

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×