GM Success Story: Republicans Wrong Again

In a CNN interview in February 2009, Senate leader of the Party of No, Mitch McConnell, stated: “I opposed the bailout …. the companies are not doing what needs to be done to save the companies. So that puts us on a long-term policy of the government simply propping up this industry endlessly“.  Again, in August ’09 Mr. McConnell reiterated his position: “I think the government auto bailout was a big mistake.”

Well, with the GM IPO, repayment of $11 billion, and the federal share of the company down to around 33% it looks like “endlessly” could be a couple of years.  The Republicans need to suck it up and recognize the auto industry “bailout” for what it was and is–an investment in America’s working class that has saved in the neighborhood of one million jobs and which may end up costing taxpayers nothing in the long run. If the Republicans had their way I guess they would just hand that $11 billion over to the wealthiest 1% of Americans as a supplement to the Bush tax breaks.

Related Articles

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The bailouts worked – Really!

Today’s USA Today opinion piece offers another voice acknowledging that the much despised TARP and auto industry aid program have been effective.

Of the $388 billion in TARP money that was spent, more than half has already been recovered, according to the latest Treasury Department report. What’s more, with GM looking healthier and even insurance giant AIG showing signs of life, it’s possible that TARP could turn a profit in the end. That would make it one of the best uses of federal tax dollars in memory.

I hated the fact that so many of those billions went directly into the pockets of greedy, already filthy rich executives.  But it’s times to stop bashing the politicians who made their best effort at avoiding a worse catastrophe. There are plenty of reasonable experts who concur that the programs helped, especially economists Mark Zandi and Alan Blinder. Some other editorial views:

• Guess what? Stimulus -and TARP- worked
• TARP bailout’s secret success
• TARP worked – look at the facts
• TARP a four-letter word for voters even as cost drops
• TARP had flaws but it worked
• Reality vs. perception: TARP, rescue plans worked