Q: Would 3 million jobs be lost if U.S. automakers go under? A: The 3-million-jobs figure is based on doomsday assumptions that are unlikely to materialize. Independent economists put the job loss in the hundreds of thousands if GM and Chrysler go under. Ford has said it can survive on its own for now. http://www.factcheck.org/2008/12/loss-of-automaker-jobs/ Getting to 3 million requires us to assume that all of the Big Three fail, that all their suppliers fail as well, and a lot else besides – including an assumption that Toyota, Honda and other foreign manufacturers also shut down all their U.S. production. Some independent economists say these extreme assumptions are improbable. A collapse of Chrysler and General Motors is more likely and would indeed be a severe blow to the economy in general and a calamity for each of the hundreds of thousands of workers sure to be directly affected. But considering both its sources and the assumptions required to produce it, we judge the 3 million figure to be an exaggeration. -Brooks Jackson Sources Scott, Robert E. "When giants fall: Shutdown of one or more U.S. automakers could eliminate up to 3.3 million U.S. jobs," Economic Policy Institute 3 Dec 2008. McAlinden, Sean; Cole, David; Dziczek, Kristin; Menk, Debra Maranger "The Impact on the U.S. Economy of a Major Contraction of the Detroit Three Automakers" Center for Automotive Research 4 Nov 2008.
I didn't make that claim. Just pointing out that you can't measure the loss of GM by simply looking at its employee roster. Hundreds of other businesses would have gone under, many sole suppliers to GM. Other car companies already have sources of supply. Railroads would have taken a hit. Our remaining steel industry would have taken a huge hit. One of the largest corporations in the world could not go under without a lot of snowballing.
C Crawfishing a bit there Red. It is most likely GM and Chrysler would have gone into Chapter 11 bankruptcy and reorganized. They would not have been liquidated. Many companies as large as GM was in 2009 have done just that without causing chaos. Why because in Chapter 11 they still keep operating and their creditors are both not allowed to sieze assets or stop doing business. The suppliers would alos continue to do business as has happened with Delta Airlines, is happening wit American Airlines etc. The likely result would have been similar to what happened exceptit would have followed the rule of law and not been a federal power grab. instead of the taxpayers holding the debt the creditors and bond holders would be holding. As was said earlier one reason was to protect the unions another was what I feel is a disturbing tendency by BHO to take more power into his hands.
I wasn't the one who threw out those numbers but it is quite true that a GM bankruptcy would impact many other companies. The only companies the size of GM that have ever gone bankrupt were investment bankers, not vital manufacturing industries like GM. Still, the Lehman bankruptcy precipitated the economic crash, so you really can't say that it had no negative impacts on the nation. The GM bailout was not illegal and the government has received no new "power". US taxpayers own only 26% of GM which is now operating at a profit and is paying back the loans with interest. What "power" does Obama personally receive by the taxpayers owning a portion of GM? He's not on the board, he's not an executive, and can make absolutely no corporate decisions at GM. Hmmm?
More overt lies. YOU are the one advocating the best interests of the investment bankers and their bonuses and golden parachutes. I am the one advocating the best interests of the United States, which happen to be the taxpayers.
Incorrect. I advocate zero tax dollars for any bailout. If theses investment bankers have nothing, fuck em. That's not what most people would describe as advocating their best interests. Like I said, fuck em. No tax dollars for your pet special interest.
No it didn't. One thing that the government bailout did that wouldn't have happened in a regular bankruptcy court is the government got to pick the winners and losers without having to resort to established precedence. Of course any high administration official will tell you there was no politics involved. If you can get any of the reporters covering the White House to ask the question.
