Posted: July 31st, 2011 by Militant Libertarian
Apparently, all of those people in Washington D.C. who’ve never had a real job in their lives but have always managed to make a lot of money off of everyone else have a different definition of what “success” means than do the rest of us out here in the real world. If you’re under the impression that Los Angeles is “LA LA land” then you’ve never been to D.C.
In Washington, nothing is a “success” unless it needs taxpayer money to bail it out and put it on track. With that in mind, let’s look at the “success” that is General Motors (GM):
After receiving around $52 billion in taxpayer financing, GM declared bankruptcy and was put through “accelerated” bankruptcy proceedings on special order from Washington. This bankruptcy effectively screwedthe company’s secured creditors at pennies on the dollar in favor of its unsecured creditors (mainly the United Auto Workers) and restructured the company so that the federal government owned the lion’s share of it, most of the rest going to UAW.
After this restructuring, this newly-reformed company has.. you guessed it, churned out a lot of recalls on vehicles it’s been making. Here’s a couple of the approximately 24 or so issued in the past year – all for DIFFERENT things:
Yet the only company gaining headlines for recalls is Toyota. Who didn’t get any bailouts. And whose recalls were actually fewer than GM’s have been. Hmm.. While the Cruze, specifically, had a safety failure that definitely caused accidents – the damn steering wheels came off – while the Toyota recalls were over dubious claims of “sticking” gas pedals.
Meanwhile, the newly-revamped Government Motors has been changing its tune in the press as well. No longer is it a titan of industry. Now it’s a mouthpiece for economic stupidity.
- The Volt, which costs about $41,000 to make, is selling to dealerships for.. $41,000. Profit!
- Calling for a $1/gallon gasoline tax in order to “incentivize” the market for “green” vehicles.
- Putting in a $3 million solar array at their Detroit-Hamtramck facility to save $15,000 a year in electricity for 20 years.. Do the math – to get return on investment, GM would have to keep the panels for 10x that length of time and panels don’t last anywhere near that long.
- GM will be exempt from federal taxes for years, yet nobody seems to care.
- GM “paid off” it’s government loans amidst much fanfare. But a closer look at the payoff shows that they used government loans to pay off those loans. Er..
So far, I see no “success” here in the formal definition of the word. Only what passes for success in gov-speak. Welcome to our Idiocracy, folks.