Auto Bailouts HUGE SUCCESS!
With the Obama administration touting over 1 million jobs saved as a result of the Chrysler/GM bailouts, editorials like this that say "The fact that GM and Chrysler are not only alive but modestly profitable in a weak market, after years of losing billions of dollars when car and truck sales were 50% higher, looks like more than just a successful government intervention. It looks like a flat-out miracle.",it's hard to believe we aren't all Communists by now.
Lets take a closer look at the "success" of these bailouts. It's important to look at the numbers used, because the Obama administration believes that complete destruction of these two companies wouldn't have created an opportunity for rivals, like Ford, Toyota or Honda. All companies that employ many thousands of U.S. citizens.
How many new hires would these companies have needed if the companies that controlled 37% of the market share disappeared?
How many Americans would have gotten fire sale prices on their outgoing inventory? What would they have done with the savings?
There is a new American company that hopes to sell electric vehicles called Tesla. Their biggest competition is going to be the Chevy Volt. Will this gov't subsidezed Volt be the death of Tesla? How many potential jobs have been lost?
The reality is that when the gov't meddles in the economy, the ramifications are often incalculable. Of course politicians love things that can't be calcultated or we would have kicked them out of office right after the debacle of 1913. But that's our reality today - a huge $60 billion auto bailout, that may destroy Tesla, the maker of today's ONLY plugin electric car.
I will make one prediction - by 2020 there won't be any Chrysler cars, if they exist at all they'll be just reselling Italian made Fiats.