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Taxpayer money to help GM through bankruptcy

Posted 11:00AM 04/14/09 Tax, Travel, Banking
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If General Motors is going bankrupt, why are we still pumping taxpayer money into it? Beats me, but now the word is that GM is well on its way to bankruptcy and the government (that's us, taxpayers) will have to kick in $77 billion to help that bankruptcy go smoothly.

Here's how it supposedly will work: GM will file bankruptcy around June 1. The type of bankruptcy it will file won't mean that GM will be out of business. Rather, it will restructure (hopefully with a business model that is actually sustainable). In addition to the $13.4 billion GM has already gotten from the taxpayers, another $77 billion would be added to the tab.

$7 billion of that would go toward a new GM which is basically all the "good" parts of it. All the "bad" parts would be sold off, but $70 billion would be needed from taxpayers to fund health care obligations and facilitate the liquidation. $77 billion sounds like an awfully big price to pay for a near-worthless business.

All this bailout madness is crazy. Our government keeps throwing good money after bad, and it's our money they're spending. We should not be funding businesses that don't have a chance of surviving. In fact, government really shouldn't be funding or controlling businesses at all. Let the free market do its work, because no government has ever been all that good at running anything.

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sloconnoisseur

THE ANSWER: THE ANSWER IS TO 1.) BLAME SARAH PALEN FOR THIS ENTIRE FINANCIAL MESS, AND 2.) JUST PRINT MORE MONEY! You know that this is what is going to happen anyway. So lets get on with it!!! If you don't know this is what is going to happen, you need to wake up!!

January 15 2011 at 11:59 PM Report abuse +1 rate up rate down Reply
Denis

Very simple. Reduce the size of the Government, but that will never happen.

January 15 2011 at 10:02 PM Report abuse +3 rate up rate down Reply
1 reply to Denis's comment
wbearl

Correct. The Progressive Liberal Socialist need all of those Federal Employee Union Member to help keep them in office. SEIU is one of the largest unions supporting the Democrats, second only to the Teachers Unions.

January 16 2011 at 12:00 AM Report abuse rate up rate down Reply
mhesseys

If America would step up and cause Iraq to re-value their money, the American financial crisis would be helped in recovery. So Pres. O, while you are anxious to get NFL players jobs, how about helping the American financial system and encourage Iraq to pull the plug?

January 15 2011 at 10:00 PM Report abuse +1 rate up rate down Reply
camarillofats

If it had not been for Saint Ronald changing this country from a creditor to a debtor nation we would not have this problem. Borrowed more money than all the presidents before him, combined. Then GW did the same thing; borrowed more money than all the presidents before him,combined, including Reagan.For all of thir constant preaching about fiscal responsibility, republicans are not very good at it.

January 15 2011 at 8:41 PM Report abuse -1 rate up rate down Reply
2 replies to camarillofats's comment
wbearl

And then Obama came and borrowed more money than all Presidents before him, including Reagan and Bush. So your point is what? Reagan had a huge mess to clean up after Carter left office. Bush had to pay all the bills that Clinton deferred on his way to a "Balanced Budget". In all honesty, no one can really hold any President responsible for the huge Deficit. Every President since LBJ has had to borrow money to pay for the huge entitlement programs that LBJ pushed into place. Like FDR, LBJ made points by giving away something, but failed to provide for a way to pay for it without borrowing money.

January 15 2011 at 11:53 PM Report abuse +1 rate up rate down Reply
jerrym930

If you had actually done any checking, you would know that the government was in deficit spending mode 10 years before Reagan became President. It started after LBJ and the Congressional Democrats passed their expansion of social welfare programs in their "Great Society" legislation. As a matter of fact, there have only been 4 years of non-deficit spending since 1971. As far as President Reagan is concerned, he had a deal with then Speaker Tip Oneal. The deal was if Congress cut taxes for Reagan, then they would also cut spending $1.00 for every $2.00 the revenue increased. Instead, Speaker Tip Oneal and the Democrat controlled Congress increased spending $3.00 for every $2.00 increase in revenue. What you and all liberals fail to understand is deficits are caused by spending more than the government brings in. What you also fail to even look at, is that Democrats always increase spending to keep it higher than the revenue. Democrats have never been fiscally motivated. I am frankly surprised that all of them have not declared personal bankrupcy. But, then again, they control spending their own money, but are completely irresponsible when it comes to spending the public's money.

January 16 2011 at 2:06 AM Report abuse -1 rate up rate down Reply
fredglynn3

It looks like Congress is in between Iraq and a hard place--Afghanistan. That's where most of the money went. There and into Mr. Cheney's pockets.

January 15 2011 at 8:39 PM Report abuse +1 rate up rate down Reply
1 reply to fredglynn3's comment
wbearl

Typical Progressive Liberal Socialist propaganda. The largest part of the Federal Budget is Entitlements. One of the smallest in the Military, look at any pie chart of the Federal Budget. The entitlement part of the budget alone is larger than the revenues generated by taxes. The largest part of the entitlement costs is Medicare and Medicaid. Now Obamacare will joint those two as part of the entitlements.

January 15 2011 at 11:57 PM Report abuse rate up rate down Reply
GEORGE

The republicans solve the deficit problem. Ha Ha Ha Ha Ha Ha. The tea party is dreaming if they think thats going to happen.

January 15 2011 at 8:29 PM Report abuse rate up rate down Reply
jancf

What a terrible time to rein in deficit spending. The recovery is too fragile. First...firm up the recovery, simultaneously establishing a long-term plan to address the deficit. Then, attack the deficit - and raise taxes. If we give up the spending now, we'll spiral back down to 2007-8....and there will be no economy to save.

January 15 2011 at 8:27 PM Report abuse +1 rate up rate down Reply
1 reply to jancf's comment
Steven

You must be drinking a ton of kool-aid. You do realize that raising taxes is not good for the economy. That has been proven. Regardless of that fact though there is not enough money out there to tax enough to make a sizable dent in the debt. That tax the rich scheme would only net $70 billion a year. That is chump change compared to the deficit. Face it. Spending will have to be cut and cut fast. The Ponzi schemes known as Social Security and Medicare will have to be practically gutted to be properly fixed. OH AND GOVERNMENT SPENDING HAS NOT BEEN PROVEN TO SPUR ECONOMIC GROWTH. YOU WANT REAL GORWTH? STOP PAYING PEOPLE TO SIT ON THEIR A$$ AND GIVE BUSINESSES A SENSE OF SECURITY THAT THE GOVERNMENT ISN'T GOING TO DO SOMETHING STUPID TOMORROW. A BALANCED BUDGET WOULD GO A LONG WAY TO PROVIDE THAT SENSE OF SECURITY.

January 15 2011 at 8:58 PM Report abuse -2 rate up rate down Reply
BERNIE/LOIS

When you get down to it ,just why do we need so many politicians? All they do is live off the working man, and waste a heck of a lot of money.

January 15 2011 at 7:54 PM Report abuse +3 rate up rate down Reply
nmeyeopenyun

They could start by cutting off funding used to re-build every country but our own.

January 15 2011 at 7:28 PM Report abuse +4 rate up rate down Reply
1 reply to nmeyeopenyun's comment
dtriguy011

Because we still have the highest standard of living of any country in the world. It's called being a human being. You are a spoiled brat. You live in the top 5% of people in the world in luxury and that's still not enough. Even people at the poverty line in the U.S. have lives better than most people in the world. We forget that we are still a blessed nation.

January 15 2011 at 10:59 PM Report abuse +2 rate up rate down Reply
nmeyeopenyun

They could start by giving themselves a cut in pay and benefits.

January 15 2011 at 7:26 PM Report abuse +4 rate up rate down Reply
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