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  • Morning Bell: Auto Bailout Was Really Just a UAW Bailout

    President Obama told the United Auto Workers (UAW) in February not to listen to critics of the auto bailout who said union members “made out like bandits—that saving the auto industry was just about paying back the unions.” “Really?” Obama said. “I mean, even by the standards of this town [Washington], that’s a load of you-know-what.”

    New research from Heritage labor economist James Sherk proves that it was, in fact, a load of truth.

    The Treasury Department estimates that taxpayers will lose $23 billion on the auto bailout. Sherk and co-author Todd Zywicki find that none of these losses came from saving jobs, but instead went to prop up the compensation of some of the most highly paid workers in America. They write:

    We estimate that the Administration redistributed $26.5 billion more to the UAW than it would have received had it been treated as it usually would in bankruptcy proceedings. Taxpayers lost between $20 billion and $23 billion on the auto programs. Thus, the entire loss to the taxpayers from the auto bailout comes from the funds diverted to the UAW.

    The Obama campaign is touting the bailout in Michigan this week, crowing about saved-or-created jobs. What the bailout actually saved was the UAW’s heavily padded compensation packages; what it created was a massive taxpayer loss.

    The UAW was a significant factor in the automakers’ decline: It had raised Detroit’s labor costs 50 percent to 80 percent above other automakers, such as Toyota and Nissan. In 2006, General Motors paid its unionized workers $70.51 an hour in wages and benefits. Chrysler paid $75.86 an hour. Added to mistakes by management, these labor costs were a major reason the automakers went bankrupt.

    However, through the bailout, the Obama Administration insulated the UAW from most of the sacrifices unions usually make in a bankruptcy—at taxpayer expense.

    GM and Chrysler owed billions to a trust fund they had created to provide UAW members with gold-plated retiree health benefits. In bankruptcy, these funds should have been paid proportional to other unsecured creditors. Instead, while the Administration paid other creditors only a fraction of what they were owed, it gave the UAW trust fund assets worth tens of billions—including partial ownership of both companies. The U.S. Treasury should have received these assets.

    Bankruptcy law also enables reorganizing companies to improve their post-bankruptcy situation by renegotiating union contracts to competitive rates.

    If the UAW had been treated normally under bankruptcy law, the automakers’ average labor costs would have fallen to the same levels as the foreign-based carmakers, approximately $47 an hour. While this is still 40 percent higher compensation than the average manufacturing worker, it would have reduced UAW members’ standard of living. And the Administration wouldn’t allow that. So while the UAW accepted huge pay cuts for new hires, the Administration kept the pay structure of existing UAW members at GM intact.

    Even Stephen Rattner, President Obama’s “car czar,” has admitted that “We should have asked the UAW to do a bit more. We did not ask any UAW member to take a cut in their pay.”

    As a result, even after the reorganization, GM still has higher labor costs ($56 an hour) than any of its foreign-based competitors.

    The average American worker—whose taxes paid for the bailout—earns $30.15 an hour in wages and benefits. Few Americans have the ability, as UAW workers do, to retire in their mid-50s before they can collect Social Security. Fewer still receive retirement health benefits in addition to Medicare, as UAW workers do. Yet their tax dollars went to subsidize UAW pay and benefits.

    Had the government treated the UAW in the manner required by bankruptcy law, taxpayers would have broken even. The program would have amounted to bankruptcy financing instead of an outright bailout. The Administration could have kept the automakers running without losing a dime.

    Instead, more than $26 billion went out the door and into the UAW’s pockets. Let’s put that in perspective: The amount of the subsidy given directly to the UAW was bigger than the budget of the entire State Department. It was bigger than all U.S. foreign aid spending. It was 50 percent more than NASA’s budget.

    None of that money kept factories running. Instead, it sustained the above-average compensation of members of an influential union, sparing them from most of the sacrifices typically made in bankruptcy—a bankruptcy they contributed to. President Obama engaged in special interest spending at its worst.

    The Administration did not bail out GM and Chrysler. It bailed out the United Auto Workers.

    Quick Hits:

    • Attorney General Eric Holder faced a heated hearing yesterday where he rejected a Republican call for his resignation over the Fast and Furious gun-running scandal, saying: “I stuck by my guns.”
    • At least 53 people have been killed in attacks coordinated during a Shi’ite Muslim festival in Iraq. Radical Islamists affiliated with al-Qaeda have been targeting Shi’ite pilgrims and Iraqi police.
    • “Secretary of State Hillary Rodham Clinton said on Tuesday that the United States believed that Russia was shipping attack helicopters to Syria that President Bashar al-Assad could use to escalate his government’s deadly crackdown on civilians and the militias battling his rule,” reports The New York Times.
    • President Obama is planning to give another economic speech on Thursday, with blaming Bush as the centerpiece of his re-election plea, according to Reuters.
    • Unionized teachers in Chicago are demanding a 30 percent pay raise. The average teacher in Chicago Public Schools—a district facing a $700 million deficit—makes $71,000 per year excluding benefits.
    Posted in Ongoing Priorities [slideshow_deploy]

    83 Responses to Morning Bell: Auto Bailout Was Really Just a UAW Bailout

    1. Glenn Foden says:

      Captain Renault: I'm shocked, shocked to find that gambling is going on in here.
      Welcome to the United States of Casablanca.

    2. Lindbergh Hodges says:

      This information should be on the front pages of all newspapers in the Counrty. However, because most newspapers are liberals, the average citizen will never see, nor know this information. The UAW bailout prevented a lot of job seekers from getting a normal paying job. Speaking of "fat cats" on Wall Street, they don't hold a candle to the "fat cats" in the UAW. Again, the taxpaying suckers are on the hook for another misstep by a president that has never held a real job in his life. Why is it that a CEO of any major Company in the world has to have an impressive resume of accomplishments and experience, while a teacher (not even a Professor) at Harvard skates by with a whimpy resume and only two years in the US Senate.

      • Ron Charvat says:

        I'm a member of UAW Local 719, in suburban Chicago. I don't work for GM, my company is owned by Caterpillar. My local basicaly was told " take a sub standard contract offer or leave". We now have the dis pleasure of wages that would have been good in 1999 or 2000. As for benifits, they have been reduced as well.
        When you greedy "Fat Cat" CEO's wake up and realize that paying a wage that allows for purchasing a home and all the reponsability that goes with it, as well as a new vehicle will help the economy, will help.
        You must really be a sorry A-hole, to think like you do after going to college on your daddy's union wages. I'll bet he paid your tuition.

      • Patrioticnut says:

        While I agree with your sentiment I must correct one small item in your post. The part about the taxpayers being on the hook for another misstep by the president. It was not a misstep, but a plan to elicit backing from the union thugs and the money that is stolen in the form of dues. Make no mistake it was no accident that the o funneled all that taxpayer money directly to the unions.

      • Carl says:

        This information should be displayed in the time square screen that all see on television during the Good Morning America show. This information should be on electronic bill boards in every city with a population over 20,000 people. America needs to know what the bail outs went for and not that we saved the Auto industry that could have been saved through the bankrupt courts just like other business are saved. A democratic government controlled by democrats that put the american public to pay for such few people to prospure while others lived off of the public. So much for change and hope, and now he wants to move forward

    3. chyatt says:

      No way. Really?

    4. victorbarney says:

      THANKYOU MORNING BELL! EXACTLY! It's alll about UNIONS & a promised "fundamental transformation of government" as promised our "gatherer's"(i.e., women alone, but including blacks) and the Marxist(Anti-Christ by definition) New World Order to TRANSEND RELIGION! WATCH! Especially on September 16, 2012, which is the Israelite(by the seed of Joseph, but including Judah) Feast of Trumpets(WAR) for the two-witnesses of Revelation, chapter 11 BECAUSE, WE ARE ISRAEL, NOT CHINA(Gen. 48:16) and it is we(u.s.) that placed the prophetized "forbidden foreigner" of Deuteronomy 17:15(ONLY NON-ANGLO-SAXON OVER ISRAEL IN ISRAEL IN OUR 6,000 year HISTORY)! Did I also mention the "RIGHT" Anti-Christ"(Marxist) over u.s. this time? Just saying…Watch!

    5. When will we ever learn?

      • will says:

        Clyde… please see below for another song lyric that seemed to fit the occasion.

      • dcnj says:

        Never….the wheels that drive this nonsense are so intrenched, so deep that it will have to completely collapse…the stupid now rule this country.

    6. auntdeedee says:

      They need to use those union dues for any overdrafts to their budget instead of political campaigns of socialists.

    7. pat from texas says:

      UAW, the pet project of this president, really made out like the bandits that they are. After this bomb went down, I and many friends who feel the same way, decided NEVER, to buy another GM auto again. This was a national disgrace and this president presided over it. The unions are things of the past and rightly so. Unions served a purpose in the beginning, but now they should be relegated to the dust bin, along with dinasours and "twenty three skidoo".

      • Ann says:

        I couldn't agree more. My husband and I also have decided to never buy another GM auto again (and my husband has always been a big GM auto guy)

    8. randydutton says:

      Cash for Clunkers also was an auto bailout. It removed working cars from the US inventory and, by reducing the least expensive cars from the used car inventory, forced the poor to buy more expensive vehicles. Of course, the addition of ethanol also is a boon to the UAW because ethanol destroys older cars.

      • ascpgh says:

        Yeah I thought the clunker program was for the people until I realized the EPA altered the historical MPG stat on my old car. I called outright BS because despite 200k miles I still had the window sticker with the mandated (non altered) EPA numbers. Union welfare in the free market always has the opposite effect.

      • At least the Cash for Clunkers bailout wasn't a mandated program as Democrats a few administrations ago advocated. They wanted to force turning in all cars over a certain age to "help" reduce pollution.

    9. glynnda says:

      Heritage…..you're stating the obvious here……

    10. Dave Lyddon says:

      Who was the referee overseeing this bankruptcy? Can that person be identified and held accountable? There are so many instances of government corruption coming out each day that I feel overwhelmed. I sense the approach of a worldwide calamity and I am beginning to think we need a catastrophic cleansing in order to move forward.

      • Jim says:

        I believe the President should be held accountable for this crooked deal….He gave pieces of the new GM and Chrysler to the UAW even though they had no secured debt position. They got preferential treatment and now they are going to funnel millions in contributions back to Oduma…..He ought to be tried and convicted for bankruptcy fraud……

      • The auto company bailouts were designed to avoid the bankrupt of the companies. However, a bankruptcy that included reorganization might have been better for the economy and certainly for the Federal budget. However, it would have voided union contracts, a serious no-no to the progressive Democrats.

    11. Blair Franconia, NH says:

      GM and Chrysler took the bailout money. Ford didn't. Isn't it any wonder that GM now stands for Government
      Motors?

    12. Melody Adams says:

      This is why I purchased a Ford!!!

      • Dale says:

        Only reason ford took none of the bail out was because they are still a family owned company and they wanted to keep it that way. So they rode the coat tails of GM and Chrysler and when the consessions were made they had their hand out demanding the same, and got it. Like a draft doger, they let someone else do the fighting then demanded the benefits.

    13. Oscar Brwon says:

      This confirms what we've known since 2009. Thanks for the work and the specifics. We cannot afford four more years. Our auto business cannot afford four more years. Want to save Detroit? Put the UAW on a stringent diet.

    14. Yellowjacket2 says:

      Add one more monumental lie to the increasingly long list that Obama is racking up.
      And again we ask; where is the main stream media when it comes to reporting the facts?

    15. Yellowjacket2 says:

      Add one more lie to the growing list for Obama.
      Where is the mainstream media when it comes to reporting the truth about his lies?

    16. Wayne Stippich says:

      I thought I distinctly heard Obama say that all the bailout money would be paid back!!!! Ah, another big lie!!

      Can't someone be held accountable? No, big gov. can get away with anything!!!

      • With about 50% of the population receiving government benefits, I'm one as a retired disabled veteran, do you think a cowed and deceived public will vote out sugar daddies?

    17. hughbaby says:

      Let's not overlook the bondholders of GM & Chrysler. They were also given a raw deal to further prop up the unions. A normal bankruptcy would have yielded a much better result for the bonholders.

    18. will says:

      Every night I hope and pray, Mitt Romney will see the way… with apologies to Bobby Darin and everyone not yet on Social Security. Based on the muddled response thus far, I'm hoping the campaign's strategy is to wait for this Obama talking point: Romney… "Let Detroit Go Bankrupt" to come up in the debates. Amy Payne has nailed the context for a powerful response… let's hope Mitt's team can nail the sound bite.

    19. Jesse Cox says:

      And the bailed out auto companies do not have to pay taxes on their profits!!

      • infidel4ever says:

        Isn't that just rich! Obozo's always attacking millionaires and billionaires…this regime is such a fraud!

    20. Jeanne Stotler says:

      Everyone should read some of the books out there that expose BHO for what he is, a Saul alinsky student, puppet of George Soros and his "ONe World" regiem, he has circled himself with people who belie as he does, That America should cease to exist as it has for the last 230+ year and ecome part of a One World, One goverment, where a select few will RULE, thy will decide what jobs you will have and how much educationyour children will get, what kind of neighborhod and house you can live in and who will also live with you. ou will be monitored like a prisoner and if you balk you will be killed, your relatives, like you aged parents will diappear. DO YOU WANT this to happen??, IF NOT wake up and take back the goverment our ancestors developed, VOTE NOV 6th, 2012 READ: "Conduct Unbecoming", "Amateur" and "The Blueprint: Obama's Plan to subvert the Constituion etc". There are others, they show who the REAL BHO is.

    21. Jaydee says:

      Why is it that we see nothing about all the GM dealers who bought the right to sell GM cars? We know of two who paid seven figures to purchase one. Many others paid in the high thousands. These were made null and void by our commander in chief. Just dumped in spite of a "binding" contract which contained provision for dissolving them. It couldn't have been because these "Republican" owners didn't pay homage to the "leader's" cause???

      Let's get rid of this pirate.

    22. NM Leon says:

      Any guesses on how much of that money will find it's way into the Obama campaign coffers?

    23. toledofan says:

      You're right that the money bailed out the UAW, but, it also helped the Democrats because a lot of the union dues go back to the Democrats, regardless if the members approve or disapprove, in the form of campaign contributions. So, the real problem isn't the union, it's management and the union will take whatever they can get. Anyway, everyone should remember that all of this was a direct result of the falied loan debacle at Fannie and Freddie and the bailouts and the stimulus were smoke screens to cover the real problems the Democrats created in the entire economy.

    24. Roy S. Mallmann says:

      I grew up in Detroit and I worked in an auto plant. I have been pointing this out since the bailout but nobody would believe it. Finally someone has the guts to bring it out. It should be reversed and Obama impeached because he violated contrat law to accomplish this bailout fiasco to protect the UAW. Somebody needs to do hard time on this!

    25. benny benhaer says:

      I don't quite understand. I have been UAW for 5 now. i make $16 on hr with no optical or dental. I do have a major medical plan. After I pay first $2,000. Am I or the tens of thousands of UAW brothers an sisters the fat cats that got over and got bailed out? Please give me serious responses if you would , I am open for these debates. And it is helpful to hear from ppl. who have such different views. thanks Benny Benhart

      • infidel4ever says:

        I believe that this money is used for the union thug bosses and the money laundering scheme to reelect statist politicians as Obozo! The working plebes are treated just like the private sector second class citizens. It's time the working people throw these corrupt unions out on their derriere's!

      • Rose Marie says:

        Benny, you are NOT the problem. All you have done is take a job to be able to live. It is the 'fat cats' at the top eschelon of the corporation and the union bosses who take huge bonuses every year, then try to claim that these monies are spent for benefits for the workers. Personal knowledge. My husband worked at GM for 30 years, now retired. Every year, the president of GM would got anywhere from 10 the 20 million dollars as a bonus. A bonus for what? Doing a job, sitting on his azz, negotiating with unions? What is so special about his job that he deserved that kind of money? But the claim that it was for the work force is what got them the bailout. It always gets laid at the feet of the worker. Don't feel bad, it wasnt you or the workers. You make $16 per hour with no retirement and no benefits, unless you pay for them. I know, I worked for GM too. At least you have a job.

    26. OLE BOB says:

      What would have happened if there wasn't a bailout? Thousands of other jobs hinge on building automobiles, trucks, etc. Many more workers from various industry and trades would have been impacted. Also remember that management agreed to the wages and benefits enjoyed by the UAW. Blame has to be shared for the failure of these companies. I would rather see a bailout for American workers instead of the billions of dollars given to other countries. Money should be spent on Americans and not foreign governments.

      • Patrioticnut says:

        Ole Bob, if the bailout had not happened the auto industry would have still survived. They simply would have gone through the proper bankruptcy process and been reorganized properly to make a profit on the other side of it. The unions would have had to make concessions and would have never received the golden treatment and the large share of the companies that they did. This has been coming for a long time for several reasons not the least of which the unions have driven up the manufacturing cost with demands for higher wages and retirement benefits, and have robbed these companies of their profits. Most of the largess has failed to make it to the actual production line workers and has actually gone in the pockets of the union bosses and their lackies.

      • siquijor island says:

        Normal bankruptcy is what happen when business are put out of business due to extravagant demands by unions. What about the bond and stock holders are they not important> They risk their money not yours to give you that job in the first place with the hope of getting something back. Simple no profit no reason for you job.

      • Curt B says:

        What would have happened?
        A civil war…

    27. Rose Marie says:

      Excuuuuuse Me—by this estimation, a normal auto worker would have been paid $21,153,000.00 per year. This estimate is a bit excessive don't you think? I am no fan of any union, yet I did the basic math and found this to be absolutely ridiculous. $70.51 per hour times 60 hours per week times 50 weeks per year = $21,153,000.00 per year(that's 21million, 153 thousand dollars). Come on people. I do believe what the administration did was wrong and absolutely illegal, but these figures are bogus. Every member of the UAW is required to pay 2 hours pay per month in union dues, which goes to the Democrats. Yes this was quid pro quo but not for union members, it is for the Union Masters.

      • ann says:

        Your math is off – Your figures come out to $211,530.00 (thousands). Do they actually work 60 hours a week, or 40? Anyway, the total is for wages AND benefits.

        • Steve says:

          Actually, the $70.51 is TOTAL BENEFITS, not their pay check. This figure includes the company portion of all benefits paid for each worker, not their pay rate. The average work week is approximately 38-42 hours.
          Side note: I have a friend who is a computer programmer and had to go to a GM plant in Detroit. He was there working and needed to move his laptop that was plugged into the wall. He was told he would have to wait for an "electrician" to unplug his computer. 45 minutes later the "electrician" shows up and does the dangerous job of unplugging his laptop.

          • Rose Marie says:

            Steve, yes I believe that the programmer was told to wait for an electrician, and yes that is ridiculous, but there is NO Way that GM or any other corporation pays $70.51 per HOUR for any employee, even including benefits. Actually, I worked at GM Doraville, a shut down plant in Georgia, I was not nor will I ever be a union member, but I can tell you this. All this being laid off on the worker is BS. The union bosses and the big guns in the corporation took huge bonuses every year that I worked there, and I mean in the tens of millions of dollars. They did not pay this much for worker benefits. After 30 years of employment with GM my husband grossed maybe 55 grand a year. No Way would GM pay an additional 211 Grand for benefits.

        • Rose Marie says:

          Thanks Ann, you are right my math was off. Actually both my husband and myself worked at a shut down GM plant in Georgia, and yes we did work 50 to 60 hours per week. His paycheck after working there for 30 years was nowhere close to the $211,530.00 per year that is claimed. What benefits could possibly cost nearly 161 thousand dollars per year. The real problem was all the bonuses for the big bosses and the union masters. I know of several years when the president of GM garnered over 20 million in bonuses. Those are the facts. It is not the workers, its the bosses.

    28. Casey Carlton says:

      There is a word for the Obama administration's antics here: Criminality!

    29. antiliberal232 says:

      Duh! We all said this…BEFORE the bailout took place!

    30. RHO says:

      I get hammered by democrats for saying exactly the same thing. Told ya' so.

    31. dfrank says:

      This a has been somewhat reported on. I heard about it; but, didn't understand, and still do not understand why or how they were able to avoid honoring the bond holders' claim for re-imbursement. Was there ever any legal action attempted by those bond holders? It appears to me that they were victims of an outright theft. Why is this not the case? Let's hope that some of them step forward and make a real loud public issue out of this — perhaps an October surprise. The dems like to talk a lot about people being treated fairly: What's fair about giving bond holders' money to members of the UAW?

    32. Mutantone says:

      Just how do you supply the campaign coffers just in time for a reelection effort? tax payers money back into the elections to further add more "stimulus" the endless cycle.

    33. It wasn't only the taxpayers who got screwed by Obama. Many thousands of GM bondholders and stockholders lost millions of dollars of retirement income in this phony bailout benefiting the UAW.

    34. Steve says:

      to Ole Bob: I understand your frustration and the need to keep America working. But let me ask a question. Why is the Auto Industry any more important than the Airline Industry? Or the Energy Companies? Almost all the bankruptcy lawyers and financial institutions said that the bankruptcy could have been "fast tracked" and gone through the system quickly with little disruption. There were several groups that would have purchased sections of GM and Chrysler and kept many of the UAW workers working but at a reduced wage. But, those NEW companies probably would not have contributed to the DEMS as much as the UAW does. While some workers in other companies would have faced layoffs due to the bankruptcy, the layoffs would have been short-lived. But more importantly American taxpayers wouldn't have contributed their taxes to pay for the UAW members benefits.

    35. Dot says:

      Please remember that all GM auto workers were not UAW members. Many belonged to smaller unions like the IBEW. Members of those smaller unions took big loses. This is not to complain, it is to ask you not to lump us in with those who did not feel the pain of the bankruptcy. (What I would like to complain about is that our rep was suddenly qualified to work at the IBEW headquarters in DC.)
      PS: Thanks for providing spell check.

    36. Odie1956 says:

      I hope President Romney will return ownership of the auto companies to their rightful owners on January 21.

    37. J.P. Travis says:

      You must have flunked arithmetic, Amy. First you say that GM labor costs were $70.51 an hour, then you say the UAW gave up nothing in the bankruptcy, then you say GM's new labor costs are $56 an hour. How did they go from $70.51 an hour to $56 an hour if they didn't give up anything? I hate it when people pretend they've done some research when all they've really done is regurgitate numbers pumped into the infosphere by GM management. I'm certainly no proponent of government intrusion into the marketplace, but the story of the auto bailouts is much more complicated than this simplistic article implies.

      • SmarterThanJ.P. says:

        Or you flunk at reading comprehension J.P. The *average* decreased from $70.51 to $56 per hour in benefits because *new* workers were forced by UAW to take very low pay rates while no *current* UAW employee was affected. Try again.

    38. Tim Kern says:

      "Had the government treated the UAW in the manner required by bankruptcy law,…"

      What you're saying is that this whole fiasco (including the robbery of preferred stockholders and others) was illegal. It's a crime, a series of crimes.

      It's OK, though, because no one will prosecute.

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    40. Charles Bohn says:

      This is just another wake up call to these dimwits who voted for this Marxist. But you will get those who swear he did a good job. I guess thats why The Dem are against the people showing prove they can vote like hear in Florida. By the way our great Senator Bill Nelson who loves everything Obama does is against Gov. Scott reguireing people to show proff to vote. As many as they can get like illegals thats more votes for marxist Obama & his — wipe Senator Nelson

    41. Brad S. says:

      Ok, let's put this into proper perspective. If you put the $20 Billion dollars into "rebates" for all of the GM customers who bought one of their cars in the past year, they each would be getting a $7000+ check from the government. What auto company in the world wouldn't be able to post a profit with a $7000 per car advantage over their competition ? Problem is their profit was FAR less than the $20 Billion they owe us (the taxpayer), so where did that money go . . . ?

    42. Patrioticnut says:

      Shortly after this mess went down, I and my wife traded our GM vehicles for Fords, never to buy another GM as long as we live. Not only did the unions steal all that money, the actual shareholders simply lost every penny they had invested. That in and of itself should be criminal. Not to mention that many GM dealers were closed, and coincidentally they were mostly owned by republicans. My wife works for Honda manufacturing here and loves her job. The UAW has tried to force their way into this plant and I told my wife, and she agreed, that if they did get in it would ruin the plant and her job. Why do you think the auto manufacturers are moving to the right to work states?

    43. Ron Brown says:

      As a diesel/heavy equipment mechanic with nearly 50 years experience I only made $19 per hour with almost no benefits ? where do they get an average of $ 30 per hour

    44. George says:

      People don't understand layoffs are a trickle effect. The cpoeple making parts for the GM plants go under, the people supplying the materials go under, the people making the shipping boxes to put the parts in go under, the people shipping the parts go under and it goes on from there. Reagan bailed out Chrysler because 12 states would have imploded. Obama bailed out GM because 5 states would have imploded. I for one didn't like it, but 12 million people would have been impacted and the unemployment fund would have run out in 3 months!

      (Economist)

    45. It was a pay off to the Unions . Just like everything he does . and we get stuck with the Bill .

    46. Its like you read my mind! You appear to understand so much approximately this, like you wrote the e-book in it or something. I believe that you can do with some percent to pressure the message house a little bit, but instead of that, that is great blog. An excellent read. I will definitely be back.

    47. Curt B says:

      The U.S. Military is in Japan and in Germany – on 1960s Cold War assignments – supporting those countries and their auto companies. No active major military installations or contractors are anywere near Detroit. The military industrial complex has bankrupt the U.S. domestic auto industry and what has replaced them is Japanese and German companies – most located near military bases or military contractors. Autos are imported at shipping terminals guarded by the U.S. Navy and Coast Guard. Unemployment is rampant and no one can figure out what happened??? What the public has for information is poorly written news articles. What the U.S. has for an auto industry is Japanese/German corporations – supported by the U.S. military…

    48. Jamie Graham says:

      Obama didn't bailout GM.. He bailed out the Union's who spent millions to put him in office.

    49. Mike says:

      Ford got 5.9 billion in bail out money!

    50. DrFrank says:

      Everyone tries to hedge the truth, both Obama and Romney. But let's look at some facts. The US tax payers will lose about 20 billion on the bailout. In 2006, both GM and Chrysler paid unionized workers $75.86 and $70.51 an hour in wages and benefits, respectively. That is 50% to 80% more than other autoworkers. I'm not commenting on whether this is good or bad, just the data. Obama circumvented bankruptcy laws and provided protection to union workers as many non-union workers lost pensions. Again, it could be argued that at least some pensions were saved. What was upsetting to me was the loss of shareholder investments (stocks and bonds). To let GM issue new securities is criminal to those who had previously invested (I am not one). GM was a poorly managed company with little vision. How could GM not produce a competitor to the Prius, I'll never know. The most progressive GM auto is the volt (what a monstrosity). This is not the fault of the worker but of poor management, which still continues today. Don't let anyone tell you there wasn't private money for the automakers. Money is always available for good companies

    51. Mark Bowling says:

      Ironically the UAW is trying to bring charges against Mitt Romney for ethics violations in connection to the bailout money.

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