Political analyst: Federal government didn't have to bail out GM

Thursday, October 31, 2013
 | 
Chris Woodward (OneNewsNow.com)

An organization is offering its two cents on this week's news about the GM bailout loss, namely that there didn't have to be a bailout. 

According to an inspector general's report, the government expects to lose $9.7 billion on its bailout of General Motors.

Pete Sepp, executive vice president of the National Taxpayers Union, says there were other options. "If Congress had just allowed other options," he says, "such as a structured bankruptcy or a merger that would have preserved some jobs and allowed the industry to get back on its feet and innovate, we might not be in this position at all."

Sepp adds that one of the biggest quandaries is that if the federal government is ever able to recoup its investment, it would have to wait for GM's stock to nearly quadruple.

"We can't really do that, but on the other hand, if we sell now, taxpayers have to incur a loss," he points out.

Sepp, Pete (NTU)As for the government's claims that the federal government saved jobs and prevented a deeper recession, Sepp says government could have provided some temporary, targeted assistance to workers who might have suffered under restructuring.

"It's important also to count the costs of this bailout in terms of job losses elsewhere in the economy," says Sepp. "The fact that we had high deficit spending and tax levels could not come down to the amount that they should also had economic costs."

The government spent $49.5 billion to save GM five years ago. 

We moderate all reader comments, usually within 24 hours of posting (longer on weekends). Please limit your comment to 300 words or less and ensure it addresses the article - NOT another reader's comments. Comments that contain a link (URL), an inordinate number of words in ALL CAPS, rude remarks directed at other readers, or profanity/vulgarity will not be approved. More details

SIGN UP FOR OUR DAILY NEWSBRIEF

SUBSCRIBE

VOTE IN OUR POLL

What's the biggest question in your mind as Democrats start their meeting in Philadelphia?

CAST YOUR VOTE

GET PUSH NOTIFICATIONS

SUBSCRIBE

LATEST AP HEADLINES

  Latest from DNC: Comedian-turned-senator Franken riffs on Trump
DNC: Sanders' delegates react to call for them to support Clinton
  More than 50 pro-Sanders demonstrators cited by police
  Trump's new derisive nickname for Clinton _ 'Rotten'
  November trial set for cases over NC LGBT law
  At least 15 killed, dozens injured in knifing near Tokyo
3 detained in deadly Fort Myers nightclub shooting
Die-hard Sanders' backers divided on backing Clinton
Protesters nearly drown out Wasserman Schultz
Tim LaHaye, author of 'Left Behind' end times novels, dies

LATEST FROM THE WEB

DNC saves its loudest applause for daughter of illegal immigrant
76 percent of white evangelicals have 'made up' their minds to vote for Trump, poll finds
Congressman who once feared Guam could capsize compares Jewish settlers to 'termites'
Dem gov. on DNC emails: Debbie gas been a good leader, so let's move on, already
Intel experts: Putin's goal is to discredit American political system

CARTOON OF THE DAY

Cartoon of the Day

REASON & COMPANY

NEXT STORY
Continuing debate: Farm bill, food stamp spending

Groups remain divided over the issue of food stamp spending in the farm bill.