Yes - It has been a success. It got GM back on track, SAVED - I don't know how many jobs - but it was a lot. I got rid of a gas eating van during "Cash for Clunkers" and now drive a vehicle that for the two + years that I've had it has averaged 40 MPG. That program helped a lot also. Also (and the jury is still out on this) - these programs seemed to be a "Wake Up Call" for American made cars, not to overpay top people AND "Make BETTER cars". Time will tell......
Trickle down effect - 12 years ago
Initially I was in favor of letting the auto industry fend for itself, and file for bankruptcy if required, instead of giving them tax $ for a bailout.
But then I started thinking.
For the auto industry to be able to come out of bankruptcy, they would have had to do some serious re-organizing, lowering costs, etc. These usually translate in slashing of jobs.
That would result in several 100,000 more people collecting unemployment, and probably eventually welfare since the jobs that disappeared would never come back, or if they did, would resurface in places like China.
And all those unemployed would no longer be paying taxes, a large number would end up going in foreclosure and all would probably ratchet down their spending, a lot.
So we would get an economic trickle down effect, but not of the kind usually touted by Republicans.
So in the end I decided that despite being against handouts and bailouts, not doing so would be worse for the country.
Yes - It has been a success. It got GM back on track, SAVED - I don't know how many jobs - but it was a lot. I got rid of a gas eating van during "Cash for Clunkers" and now drive a vehicle that for the two + years that I've had it has averaged 40 MPG. That program helped a lot also. Also (and the jury is still out on this) - these programs seemed to be a "Wake Up Call" for American made cars, not to overpay top people AND "Make BETTER cars". Time will tell......
Initially I was in favor of letting the auto industry fend for itself, and file for bankruptcy if required, instead of giving them tax $ for a bailout.
But then I started thinking.
For the auto industry to be able to come out of bankruptcy, they would have had to do some serious re-organizing, lowering costs, etc. These usually translate in slashing of jobs.
That would result in several 100,000 more people collecting unemployment, and probably eventually welfare since the jobs that disappeared would never come back, or if they did, would resurface in places like China.
And all those unemployed would no longer be paying taxes, a large number would end up going in foreclosure and all would probably ratchet down their spending, a lot.
So we would get an economic trickle down effect, but not of the kind usually touted by Republicans.
So in the end I decided that despite being against handouts and bailouts, not doing so would be worse for the country.