Nonsequitur: Did Obama’s Spending Save the US Auto Industry?

May 16, 2012

Was the auto bailout worth it?  John Lott has an interesting discussion reviewing Obama’s campaign claims that the auto bailout “saved one million American jobs,” that “all loans have been repaid,” that GM is again “the number one auto maker” and others.  Lott points out discrepancies for all of these claims. 

 I would just add this:

  • Despite the claim that the bailout would prevent it, both GM and Chrysler declared bankruptcy anyway
  • Ford Motor Company took NO bailout funds and did NOT declare bankruptcy
  • Chrysler is now owned by a foreign company (Fiat)
  • GM was “loaned” about $100 billion in TARP  funds, stimulus dollars and tax exemptions.  It is now worth about $34 billion

There is no doubt that the bailout did help individuals and some communities who are linked to the auto industry.  But was the bailout really needed and did it do what it was supposed to do?  What do you think?

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4 Responses to “Nonsequitur: Did Obama’s Spending Save the US Auto Industry?”

  1. […] Obama proposes bailing out … everybody? ’Cause it worked so well the last time?  […]

  2. […] House officials point out that “over a million” jobs were saved by the bailout.  But is this true? Share this:TwitterFacebookLike this:LikeBe the first to like this. Posted by poliwogg Filed in […]

  3. […] “break even” target value of about $70/share.  But I doubt it.  As already discussed, the bailout did not prevent GM from declaring bankruptcy.  It’s a […]

  4. […] how the auto bailout was going to >save Detroit (it didn’t) and keep American auto companies out of bankruptcy (it didn’t)? Another one of President Obama’s promises was that taxpayers would see full […]

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