Quote:
Originally Posted by Calgaryborn
It both cost the taxpayers money and prevented the only thing that could have fixed GM's problems: bankruptcy.
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Had GM and Chrysler collapsed, it would have cost the federal government about $28.6 billion in lost tax revenues and assistance to the unemployed in just the first two years alone, according to the Michigan-based Center for Automotive Research. In other words, doing nothing could have cost more than twice as much the bailout.
By the way, that $28.6 billion figure doesn't include the business taxes the federal government would have lost but can now expect from two large, profitable automakers and their suppliers. It also doesn't include any lost state and local tax revenue.
-http://money.cnn.com/2011/07/21/autos/chrysler_bailout_costs_gains/index.htm
I didn't approve of the auto-industry bailout, but I think I was wrong.
Clearly the economy would be in a worse state (today) without it.