GM’s 16% Growth Fueled By Government Purchases
Before anyone gets too giddy about progress from the General Motors buyout, consider the bulk of that came from government purchases of GM vehicles.
While most of the mainstream networks reported the 16% rise in GM sales, they failed to mention that most of it was due to a 79% increase in GM vehicles bought by the Federal Government. On it’s truck sales, for example, General Motors has what is called a 135 day supply of trucks on the market; meaning if they stopped making them altogether, there would be enough trucks at dealerships to sell them for at least 135 days nationwide before they ran out. In automotive circles, a 60 day supply is considered signs of a healthy vehicle economy. The bailout has cost incredible amounts of money for taxpayers, while the UAW (United Auto Workers Union) and others received preferential treatment. A very easily understandable way to explaining the bailout is detailed by Newsbusters Online:
“That’s like you setting up a lemonade stand for your kids. You buy them the lemons, sugar, cups and pitchers – and then buy most of the lemonade yourself.
Except you are President Obama. Your kids are the United Auto Workers Union. And the lemonade cost $50 billion.
At least you get to tax your neighbors for the $50 billion.”
According to an in-depth report by the Heritage Foundation, numerous bankruptcy principles were violated by the bailout, and the government has already written off at least 7 billion dollars that will never be repaid, in taxpayer money. And Obama continues to campaign on the ‘success’ of the automotive bailout.