General Motors Bailout Costs Taxpayers $10.5 Billion

The Wall Street Journal reports that “the U.S. government sold its last shares in General Motors on Monday, booking a $10.5 billion loss [out of the $49.5 billion spent] but clearing the way for the auto maker to return cash to shareholders and begin wooing consumers alienated by the bailout.”

“That loss is sure to fuel the debate over whether taxpayer money should have been used to put GM and Chrysler Group LLC through government-led bankruptcies in 2009.”

President Obama declared the rescue a success, “pointing to the 372,000 new jobs created in the U.S. auto business over the past five years and the strong profits at the Detroit Three auto makers.”

“The Treasury Department stressed on Monday that the goal of financial-crisis-era program was never to turn a profit.”

FavoriteLoadingSave to Favorites
  • southerndemnut

    Lets see here, saving probably a million jobs by keeping the auto industry afloat $10.5 billion. CBO estimates that the GOP-led government shutdown charade that accomplished nothing cost the economy $24 billion. What more do I need to say?

    • pbrower2a

      Those million jobs surely pumped at least $10 billion into IRS coffers and kept unemployment payments from skyrocketing. It was a good policy.

  • centerroad

    Lost in this discussion is the large profit the gov’t made. We saved one million jobs which would have gone to long term unemployment, costing taxpayers $20billion/yr for 3 yearts,, we made $60billion there. Instead those workers pay taxes of about $10billion/yr ongoing, but just in the 3 years it totals $30/billion in tax revenue, and GM also paid taxes, although not much.

    So in direct savings and benefits, $90/billion profit less the $10billion stock loss, with a continued tax revenue stream of $10bil/yr until we reach full employment.This doesnt even count the savings from the even longer term unemployed which would have to receive gov’t benefits like welfare and health care, the avoided foreclosure costs on peoples homes and other local impacts, and the secondary taxes paid by those workers on things like sales taxes, gas taxes, etc.

    What is the matter with the Democrats for not making this case front and center in any discussion of the bailout?

Read previous post:
Congress Nears Deal on Defense Bill

With the end-of-year deadline looming, House and Senate negotiators appear to have reached an accord on a defense policy bill....