Gay Patriot Header Image

Does the federal government have enough money for Obama’s economic policies?

Last Thursday, Politico reported that President Obama wants to extend the “auto industry success” to other industries:

President Obama, while villifying Mitt Romney for opposing the auto industry bailout, bragged about the success of his decision to provide government assistance and said he now wants to see every manufacturing industry come roaring back.

“I said, I believe in American workers, I believe in this American industry, and now the American auto industry has come roaring back,” he said. “Now I want to do the same thing with manufacturing jobs, not just in the auto industry, but in every industry.

That “success” came at quite a price to taxpayers as the Detroit News reported yesterday:

The Treasury Department says in a new report the government expects to lose more than $25 billion on the $85 billion auto bailout. That’s 15 percent higher than its previous forecast.

In a monthly report sent to Congress on Friday, the Obama administration boosted its forecast of expected losses by more than $3.3 billion to almost $25.1 billion, up from $21.7 billion in the last quarterly update.

The report may still underestimate the losses. The report covers predicted losses through May 31, when GM’s stock price was $22.20 a share.

A loss of $25.1 billion?  Just a drop in the bucket for an administration which has increased the debt by over $5 trillion.

Share

6 Comments

  1. Here is example of a lefty logic fail (paraphrased from the comment board of my local paper):

    Erin G : If given the chance, greedy business owners will reduce their workforce in order to increase their bottom line.
    Me : Isn’t the point of being in a successful business to maximize revenue while decreasing expenses?
    Erin : Not it if comes at the expense of laying off employees.
    Me : So businesses should not be as efficient as possible.
    Erin : Not it if comes at the expense of laying off employees.
    Me : Doesn’t Obama say that he will save $500 billion in the entitlement system by increasing efficiencies?
    Erin : Yes
    Me : How does he plan on doing that?
    Erin : By finding positions and system that are redundant.
    Me : Isn’t that the same as what a successful business person should do?
    Erin : No
    Me : How is it different?
    Erin : The business owner is greedy.
    Me : So a business should keep unneeded/redundant employees and systems but the government should eliminate unneeded/redundant employees and systems?
    Erin : Yes

    Priceless …. Erin is employed by the state. Erin has never held a job in the private sector. Erin prides herself in her informed bi-partisan views.

    Comment by TnnsNE1 — August 14, 2012 @ 1:05 pm - August 14, 2012

  2. TnnsNE1, you can make a little animated movie of that, at Xtranormal.com !

    The Treasury Department says in a new report the government expects to lose more than $25 billion on the $85 billion auto bailout. That’s 15 percent higher than its previous forecast.

    I see the point, but there’s something funny about the logic.

    Even if the government made a “profit”, what they did would still be wrong. The market, i.e. the PEOPLE, should decide which companies, products, jobs, etc. live or die. Not the government.

    It is wrong for the government to enter business. It is wrong for the government, which takes what it wants by force, to try to make a profit. The so-called “profit” would only be something that the government took from its citizens.

    The word “profit” refers to the creation of value; even if the government could show an accounting profit on GM, the fact that they intervened in business at all is a great harm to American society. In that sense, no amount of accounting profit is, or ever can be, a genuine profit – when made by the government.

    Comment by ILoveCapitalism — August 14, 2012 @ 2:56 pm - August 14, 2012

  3. That kind of logic hurts my soul.

    Comment by Windy — August 14, 2012 @ 2:59 pm - August 14, 2012

  4. ILC.. I would if I weren’t so busy trying to make a profit ! haha

    Comment by TnnsNe1 — August 14, 2012 @ 3:13 pm - August 14, 2012

  5. One thing you can also point out, TnnsNe1, is this.

    Which is the case of a government organization ordering private businesses to lay people off to save more jobs and to increase the profitability of a private business.

    The next one to use on her: ask her if the government should be paying for millionaires to fly around on liquor-stocked private airliners or if she thinks a millionaire who uses legal means to reduce their taxes on luxury items is fit to hold office.

    And then when she answers in the negative, hit her with this and this.

    And if she screams about security, have her look up the fact that John Boehner flies commercial. 🙂

    Based on my Twitter experience, this is usually prelude to a meltdown.

    Comment by North Dallas Thirty — August 14, 2012 @ 3:23 pm - August 14, 2012

  6. Oh, darn!

    I just loaned a girl named Erin some money to start up a business called “Jobs R Us” which will hire everyone who applies and then do business and hire more people and do more business which will allow them to do more business and soon we will have 100% employment and so much business that we will have to open up branches in Africa and Antarctica and Chicago.

    Did I misunderstand the business plan? Where did I go wrong? Is this a scam? Can I get my money back? Will Obama bail me out?

    Comment by heliotrope — August 14, 2012 @ 5:53 pm - August 14, 2012

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.