One of President Obama's claimed successes was the bailout of General Motors and Chrysler. It is questionable just how "successful" this bailout actually was and is.
After all the carnage--stockholders were fleeced, hundreds of thousands of autoworkers lost their jobs, several thousand small businesses were obliterated, thousands of loyal nonunion workers had their pensions ripped away, and the UAW got rich.
General Motors is enjoying a federally gifted ten year tax holiday. Speaking of paying no taxes, a slimmed dpwn General Motors is paying far less taxes at the local level and those they do pay are on their way to the State Tax Commission in expensive tax assessment disputes with various GM communities in Michigan. There is certain to be more carnage in the next three years.
GM's diminished tax footprint in Michigan means layoffs in the state and local public employee ranks, reduced services, and operations. While former Michigan Governor Jennifer Granholm electrified the Democratic Party Convention, she shrieked on about "American jobs." There was no mention of Fiat's acquisition of Chrylser. That is Fiat, an Italian automaker.
So, when you hear about the success of General Motors and Chyslerini, consider that Bain Capital could never have wreaked such a significant level of economic havoc in its wildest "greedy", "bloodsucking", "parasitic", capitalist dreams.
There are some thoughtful suggestions that the bailout of the auto companies was particularly bad for Michigan, way too long dependent on the auto industry. Allowing the auto industry's self directed path to destruction might have finally forced Michigan to get its act together for the NEXT BIG THING.
When you hear about this "success", ask yourself the meaning of success.
In my contrarian world, success is spelled FORD.
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