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The Auto Bailout Worked


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Duh!

 

http://www.washingtonpost.com/opinions/celebrating-the-auto-bailouts-success/2015/04/01/67f3f208-d881-11e4-8103-fa84725dbf9d_story.html?hpid=z3

 

Every so often, we ought to celebrate our victories. The auto bailout is a case in point. Six years ago, it was wildly controversial, with the fate of General Motors and Chrysler hanging in the balance. Now, it’s clear that the bailout was a solid success.

The revitalized auto industry has been a pocket of strength in a lackluster economic recovery. Motor vehicles and parts have provided 25 percent of the recovery’s gain in manufacturing, despite representing only 6 percent of manufacturing’s value added. Since mid-2009, the number of manufacturing jobs increased by 256,000, up 41 percent from the low of 623,300. Dealerships and parts stores added another 225,000. (All gains are as of mid-2014.)

 

 

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Two things: Would the automakers be in any worse shape now than if they had gone through normal bankruptcy? Is it the administration's place to divvy up a company and reward its political supporters with shares in that company?

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You can keep almost anything alive with $10.2B.

I would like to see what they mean by 70 billion "recovered". I know only a small portion of the bailout was in the form of a loan. I know they got that back. The rest was buying stock in GM. Like the government has the right to be in the car business. I'm just kind of confused why gatorman is suddenly behind the bailout of corporations. Or is it just the heavily unionized ones? They made a ****ty product with overpriced labor and should have paid the price like every other business that is mismanaged.

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How much of that boom is attributed to GM and Chrysler, and how much is attributed to all other industry competitors who did not receive any bailout money?

 

Also, strange to see a "Bush good!!!" post from you.

Edited by TakeYouToTasker
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How much of that boom is attributed to GM and Chrysler, and how much is attributed to all other industry competitors who did not receive any bailout money?

 

Also, strange to see a "Bush good!!!" post from you.

 

There's your control group. Seems that Ford skated away fine with zero federal help.

 

That article (and Goolsbee's thesis) are crap..

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You can keep almost anything alive with $10.2B.

I believe we spent that much every month in Iraq, but Conservatives didn't want to save jobs here in America with money. Ignorance is not strength

How much of that boom is attributed to GM and Chrysler, and how much is attributed to all other industry competitors who did not receive any bailout money?

 

Also, strange to see a "Bush good!!!" post from you.

At this point, who cares? As long as it worked, which it did.

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At this point, who cares? As long as it worked, which it did.

Channeling Hillary here?

 

It matters a great deal, because that's what would determine if it worked, or if the article's author is giving credit that was actually deserved by non-bailout firms to the bailout itself. If that's the case, then it's not evidence that the bailout worked, at all. It's evidence that the free market worked, and that the bailout only served as political patronage to the UAW.

Edited by TakeYouToTasker
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  • 2 weeks later...

It did not work. It screwed over thousands of people to reward the politically connected and Chrysler is now an Italian company. The can was kicked down the road and the real reforms needed in the domestic auto industry never happened.

 

And then there were two....

 

Meanwhile Japan has Toyota, Nissan, Honda, Mazada, Mitsubishi....

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The problem is both consumer confidence and credit are at stall speed and the age of vehicles on the road remains at 11 years plus.

 

I don't disagree the bailout "worked" in that it prevented certain doom for certain automakers then but today they face strong head winds on the demand side.

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So the conclusion is.......corporate welfare good??

 

These new-era "progressives" certainly are a confused bunch.

 

Major political party strategists beg to differ.

Corporate welfare has its place for sure. Military Industrial Complex wouldn't function with out, and I'm not complaining

 

And yes, the political parties sure do live off ignorance, what other choice do they have?

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It did not work. It screwed over thousands of people to reward the politically connected and Chrysler is now an Italian company. The can was kicked down the road and the real reforms needed in the domestic auto industry never happened. And then there were two.... Meanwhile Japan has Toyota, Nissan, Honda, Mazada, Mitsubishi....

The Delphi retirement fund was taken over by the gubment as well. Those benefits are now on the tax payer's dime.

 

That was and is a dangerous precedent, and seemingly forgotten by most everyone.

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The Delphi retirement fund was taken over by the gubment as well. Those benefits are now on the tax payer's dime.

 

That was and is a dangerous precedent, and seemingly forgotten by most everyone.

 

It was never understood by most everyone to begin with. And when it was explained that the White House unilaterally changing the seniority of creditors outside the scope of law sets a bad precedent for everyone, most everyone dismissed it with "rich people deserve it."

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Corporate welfare has its place for sure.

 

The auto bailout was cronyism more than corporate welfare. People should be in jail for what happened.

 

It was a massive failure. Much of the increase in sales was due to fleet sales. Fleet sales is generally govt. buying large quantities of vehicles. Recent fleet sales have probably been politically driven, not need driven in order to convince the low information rubes out there that the corrupt/failed auto bail out some how has worked.

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