Clint Bower’s letter “GM: Survive then profit” made some good points, especially about the need of the U.S. government to become aware of the costs of being over-employed. They also need to recognize the need to live within a budget, and to make necessary spending adjustments when called for. That holds true for the government, as well as GM.
Which brings me to one of my “hot buttons:” the government bailout of GM, and, if my understanding is correct, the continued government subsidization of GM.
When GM approached bankruptcy, the government stepped in with millions, if not billions, in financial aid. I, along with untold numbers of investors, lost 90 percent or more of our investments in GM. And then, the unions were given huge ownership positions in “the new General Motors.” The workers kept their jobs and the unions made out like bandits, but the investors, many of them small, like me, were left holding the bag.
And now it appears that GM is profitable, but the subsidies seem to continue. Dare I say “Corporate Welfare?” If they need to downsize, so be it. But why do we need to continue to pour taxpayer dollars into a profitable company?
If the government is so eager to spend the money, how about they use some of it to reimburse GM investor losses, rather than giving it to a profitable company?