The bail-out of major corporations and banks at the expense of public debt contradicts the rhetoric of the free-market. According to capitalist theory companies that make poor decisions should pay in the market even if that means they go out of business.
But, that is not what happens.
Governments around the world decided every woman and man would contribute to the bail of privately-owned enterprises that failed to manage speculative business ventures or to respond to new market demands.
Should the public purse keep afloat private enterprise?
This is from 10 days ago...
"General Motors today $8.1 billion in government loans repaid, five years ahead of schedule and nine months after the troubled auto giant declared bankruptcy, signaling that the auto maker may be on the path to profitability.
General Motors Co. CEO Edward Whitacre Jr., celebrates with workers during a news conference at the GM Fairfax plant Wednesday, April 21, 2010, near Kansas City, Kan. GM repaid $8.1 billion in government loans, five years ahead of schedule and nine months after the troubled auto giant declared bankruptcy.
(Orlin Wagner/AP Photo)"As of today, GM has repaid in full and interest," said GM CEO Ed Whitacre to a crowd assembled on floor of a GM plant in Kansas City, Kan.
To smiles and applause from workers, Whitacre also announced GM's plan to invest $257 million in that plantand another in Detroit to ramp up production of the Chevy Malibu.
Cheering on the floor of a GM factory would have been unthinkable a year ago, when the company was on a downward spiral towards its bankruptcy in June 2009. "
http://abcnews.go.com/WN/general-motors … d=10437944
Yet it just keeps happening.
The media only covered a few of the many banks who got free tax payer money.... most of which has not been paid back.
That money went to the banks with no stipulations. They could use it however they wanted and had to tell no one how it was used.
And Obama wonders why there is such a huge anti-government sentiment?
Just look at the Government Motors media scam in the past 2 weeks. $18 Billion handed out to General Motors Finance... no one is talking about this part of the GM Bailout on the nightly news. Then Government Motors repays a loan of $8 Billion (While still owing an Additional $45 Billion) and the media picks up the story as if EVERYTHING HAS BEEN REPAID.
Americans citizens are being lied to over and over by the Media and the Government.
by pgrundy 10 years ago
Does anyone else think this is getting out of hand? I read yesterday that GM will close 5 more plants and lay off 20,000 more U.S. workers but they need $14 billion to do it. How many jobs could we lose for $28 billion? How many billion do we have to fork over to get them to eliminate ALL the jobs?...
by Journey2244 8 years ago
I think the wealth should be shared by the Rich. Let's put an end to hunger in our own country.
by phion 6 years ago
Taxpayers pay for $49,000 of the $89,000 dollars it cost to build a Chevy Volt. Sound like a good deal to you? That President Obama really wasn't joking when he said energy costs will have to sky-rocket was he? What a joke. See what happens when we rely on government?
by Rhonda D Johnson 7 months ago
What did the US use for collateral when we borrowed money from other countries?We know that the US government has borrowed billions of dollars from China, Japan and other countries. But what did we use for collateral? I've been told that the United States is actually a...
by MikeNV 8 years ago
You can read it for yourself... and you should. And you should vote out every Democrat and Republican that supported this giveaway of your tax dollars to the wealthy. Everyone here knows that the Chrysler GM Handout wouldn't be repaid.http://news.yahoo.com/s/ap/20100517/ap_ …...
by MikeNV 8 years ago
The Associated Press released a story today... an anti-republican, pro Obama piece about jobs created with stimulous money in South Carolina in a mostly Republican area."The new hires came from a broad area including parts of South Carolina and Georgia, and unemployment rates have continued to...
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