The Cost of the GM Bailout on the Average Taxpayer

[dellinger63]

While celebrations took place over a $7.2 billion record profit by GM and $7,000 bonus checks going to 45,000 union, rank and file workers, the American taxpayers were left holding stocks worth $27 billion less than what was paid for them. Yet no investigation, no sorry it was a horrible mistake just singing of C-E-L-E-B-R-A-T-I-O-N!

Using $35K as an average income and the latest tax table available (2011 1040EZ) we find that taxable income on $35K (after the $9,500 standard single deduction) is $3,304.

Shockingly when that $27 billion GM loss is divided by the ‘average’ taxpayer’s contribution of $3,304 the total comes to 8.18 million taxpayers! Thus for every one of the 45K workers there are 182 average taxpayers who will be forced to pay 100% of one year’s taxes to offset the $27 billion ‘investment’. They received no $7K bonus, but instead in a left front pocket to right front pocket move, got a $700 dollar payroll tax cut offset by not contributing the same $700 to their retirement account.

Wall Street Occupiers, Buehler, anyone?

[Riot]

What is the cost to the economy of 1.2 million people on unemployment insurance? Foreclosed houses? Lost local income (groceries, etc.) Lost manufacturing ancillary firms? Ford having to close, too, because all their supply manufacturers closed, unable to keep open for just one auto firm.

Duh.

[dellinger63]

Originally Posted by Riot

What is the cost to the economy of 1.2 million people on unemployment insurance? Foreclosed houses? Lost local income (groceries, etc.) Lost manufacturing ancillary firms? Ford having to close, too, because all their supply manufacturers closed, unable to keep open for just one auto firm.

Duh.

Yea because instead of cars and trucks we'd be on horseback and in wagons without GM.

The entire universe would be sucked in by a black hole if GM were to go under. Flying Unicorns with missile-guided lasers shooting from their horns will attack America if GE is required to pay taxes.

[SOREHOOF]

Originally Posted by Riot

What is the cost to the economy of 1.2 million people on unemployment insurance? Foreclosed houses? Lost local income (groceries, etc.) Lost manufacturing ancillary firms? Ford having to close, too, because all their supply manufacturers closed, unable to keep open for just one auto firm.

Duh.

Pelosi and the Dems tell us that Unemployment Insurance is a big boost to the economy. Remember? Good thing G.E. bought lots of Chevy Volts!

[Riot]

Originally Posted by dellinger63

Yea because instead of cars and trucks we'd be on horseback and in wagons without GM.

You have no answer to the cost to the nation of 1.2 million on unemployment insurance, etc. Just ignoring that? Got it

Keep beating the "bailout sucked" drum with your friend Mittens, and be sure to drive American. Your drum is getting pretty faint, however. BTW, ask Mittens why the government had to bail out, why private firms would not provide capital for managed bankruptcy and declined financial involvement - you know, like Bain Capital turned down involvement when it was specifically asked.

The rest of us will enjoy the success and the win for Detroit. Unemployment of 1.2 million Americans prevented, a thriving manufacturing industry saved. Yeah. That's a good thing to most.

[Riot]

Originally Posted by SOREHOOF

Pelosi and the Dems tell us that Unemployment Insurance is a big boost to the economy. Remember?

Pelosi and the Dems tell us that employment is an even better boost to the economy. And they put actions behind their words to prove it.

Oh - and it worked. Beautifully.

[dellinger63]

Originally Posted by Riot

Keep beating the "bailout sucked" drum with your friend Mittens, and be sure to drive American. Your drum is getting pretty faint, however. BTW, ask Mittens why the government had to bail out, why private firms would not provide capital for managed bankruptcy and declined financial involvement - you know, like Bain Capital turned down involvement when it was specifically asked..

OK I'll take a wild guess. Maybe because they realized it was a $27 billion dollar loser? Same reason they didn't want anything to do with Solyndra?

Let me ask you something. How many employees of Lehman Bros and Art Andersen are still on unemployment?

[SOREHOOF]

Originally Posted by Riot

Pelosi and the Dems tell us that employment is an even better boost to the economy. And they put actions behind their words to prove it.

Oh - and it worked. Beautifully.

By putting people out of work? I'm not sure what you mean. The Dems have been quite prolific in that respect.

[Riot]

Originally Posted by SOREHOOF

By putting people out of work? I'm not sure what you mean. The Dems have been quite prolific in that respect.

I mean the obvious subject of the thread. By keeping 1.2 million auto industry people in work.

Not quite sure what you mean by "the Dems are quite prolific in that respect" of putting people out of work, as unemployment has decreased, not increased, consistently and markedly since 2008. Do explain.

[SOREHOOF]

It hasn't decreased ,Riot, things are worse. The numbers are fudged. Everything costs more. Working people are feeling the pinch. Gas prices rising, raises the price of everything. I know more people losing their jobs than getting new ones.

[SOREHOOF]

Originally Posted by Riot

I mean the obvious subject of the thread. By keeping 1.2 million auto industry people in work.

Not quite sure what you mean by "the Dems are quite prolific in that respect" of putting people out of work, as unemployment has decreased, not increased, consistently and markedly since 2008. Do explain.

She's better with words. Huffington Post!
http://www.humanevents.com/article.php?id=49843

[Riot]

Originally Posted by SOREHOOF

She's better with words. Huffington Post!
http://www.humanevents.com/article.php?id=49843

Seriously?

Michelle Malkin?



You do realize that she's arguing for an effectively much bigger bailout?

[dellinger63]

Various petroleum sources have estimated 1,000,000 jobs could be created if only Obama would reverse his policy and instead of throwing away the people’s money on doomed solar companies he’d sit down at his desk and sign some permits. Even if those touting a million jobs are off by 90% that’s still 100,000 jobs.

60,000 jobs were saved at GM at a cost to the taxpayers to the tune of $27 billion. Riot claims those 60,000 jobs actually represent and saved 1.2 million ancillary jobs.

If that conversion is to be believed reviewing a few calculations will make you sick:

Owed to Taxpayer
GM -$27,000,000,000
Oil $0

U.S. Jobs Created / Saved
GM 60,000 Ancillary 1,200,000*/Total 1,260,000
Oil 100,000 Ancillary 2,000,000* /Total 2,1000,00

* Ancillary formula using Riot’s conversion

Tax Receipts Created / Saved (Based on $40K/yr 20%)
GM $11.34 billion - $27 billion= $15.66 billion loss
Oil $189 billion – 0= $18.9 billion gain

There you have it. A demonstration of how FUBAR’d the GM deal was to the taxpayer and the money Obama is purposely leaving on the table choosing failure over success. A $34.56 billion difference is not small potatoes. The good news is GM will be close to even with next year’s tax receipts so out of courtesy working the number out to the standard 10-year frame Obama seems so fond of, and using $40K/yr as an average salary, GM will have contributed $84.88 billion in tax receipts from GM and ancillary workers. Over 10 years new/ancillary oil jobs $189 billion. What’s scary is if petroleum analysts are off by only 50% or God forbid balls on with their prediction.

If Riot’s conversion number is correct, unemployment could be severly reduced using a pen instead of taxpayer money. Good for the economy, jobs and ultimately social security and Medicare’s survivability.

Yea, Mr. President, keep telling us how that $27 billion was well spent! Explain it to military personnel and senior citizens, who were warned they might not be receiving checks w/o further raising of the debt ceiling (printing more money) and digging a deeper hole. Then be honest and tell taxpayers they will be picking up the $27 billion tab.