No it was not. There are a few union members who made out like bandits and a few more senior managers who got to keep their very generous pensions. It was worth it for the president because he was able to sway Michigan and Ohio by convincing people the auto bailout was for them. But for the rest of us, the world would be better off if GM had died in 2009.
We’ve said multiple times that GM is a company which deserved and deserves to die. It is a shame that this company still treads the earth along with the rest of the herd of bailout dinosaurs.
We are just beginning to get the story on why vehicles were not recalled to GM when they should have been. That the vehicles involved might have shown the government sponsored car manufacturer in a bad light had nothing to do with the slow response of course.
I was talking to an avid NFL fan recently and he thinks the league has seen its zenith and it will be a slow decline from here on out. The brain trauma scandal isn’t helping things and neither are the kinds of deals team owners get.
Earlier this year the Treasury decided to sell off the remaining position it (and the taxpayers) had in Government Motors at a $10 billion loss.
This week Senator Rand Paul, who is likely running for president, suggested that Congress act to pass legislation which would declare Detroit an economic “freedom zone.” That is to lower taxes in Detroit to near 0% levels spurring business activity and development.
We at Against Crony Capitalism wholeheartedly agree with this idea. We even called for something similar last year. Unleash the market in Detroit and the city will bloom.
Few cities have been as ravaged by inept governing and crony capitalism as Detroit has. Because of decades of mismanagement and neglect what was once one of the great cities of the world is now a rusting heap. But it need not remain so.
We couldn’t be more for this. In fact, last year we suggested a very similar idea. We said:
This is a winning strategy for Paul. The cause of truly small government and free markets and free prices isn’t an idea which only works for white folks. It works for ALL folks.
These are annual pensions. The workers are retired. They contribute little if anything to the state of Illinois at this point. And most of these folks probably retired in their 50s, some probably before that.
This isn’t a bailout, a bailout would be much larger, but it is a gift (paid for by you) from the Feds. Mostly a political move to placate some of the restless Dem party loyalists who would like far more for Detroit, I am surprised it isn’t a greater sum. In the end it probably will be.