Archive for the ‘gm’ Tag

Wasted Tax Dollars on Auto Bailout – Isn’t this what conservatives said in the fall?



The Obama Administration is now ordering the giant automaker to prepare for bankruptcy-just in case. Which, of course, is exactly what GM should have done before wasting billions of taxpayer dollars.

The Obama oversight task force contends that its job is to ensure that the money is spent wisely. The task force today announced that it had given GM 60 days to develop a plan for bankruptcy, in case its financial problems continue unresolved.

Not surprisingly, when the Treasury Department issued the bankruptcy preparation orders to GM yesterday morning, GM experienced a signficant drop in stock prices. Overall, shares dropped by more than 16 percent in yesterday’s trading after the government issued its latest demands. 

Writing for National Review Online, Henry Payne is right when he quotes Tennessee Senator Bob Corker (R), who stated that “the delay of several months has increased the severity and sent billions of taxpayer dollars down the drain.” And that’s why many conservatives had pushed for bankruptcy back in Fall. Unfortunately, $17.4 billion of the taxpayers’ money had to be wasted on GM and Chrysler before the federal government’s failed social engineers finally realized what many Americans had for months on end. Somehow, looking now at that mountain of debt pile up, “I told you so” simply falls flat.

The lesson in all of this is not simply that government is inept and contaminates its own house time after time and again. Everyone already knows that. But many people now need to realize that government will also hurt those who come to it for help, too—and even those government claims it is actually trying to help. By putting its trust in the federal government, GM has found itself worse off than if it had taken the painful, but tried-and-true route of bankruptcy.  Instead, however, it trusted Big Government. And instead of freedom, it woke up to find itself firmly bound by government regulation.  As GM awaits the inevitable end, it can find little solace in the fact the American taxpayer may share the selfsame fate: a slow and painful demise bound to the plank of Big Government.