Bailout "put food on the table for 10s of 1,000s," says GM Pres. Mark Reuss.
The federal government bailout of General Motors spared at least 1.2 million U.S. jobs, according to a new report – and even though taxpayers will lose more than $9 billion on the rescue effort, that was more than offset by nearly $40 billion in additional taxes generated in just the year the government pulled the beleaguered automaker out of bankruptcy in 2009.
The white House has been rapidly selling off its final shares in what critics have called “Government Motors,” and expects to be completely out of the automotive business by the end of this month. The most recent Washington forecast indicated taxpayers could lose $9.7 billion on the bailout, though the rapid run-up in GM stock this past month could trim that loss, analysts note.
Facts You Can Quote!
“Any complete cost-benefit assessment of the federal assistance to GM in its restructuring must consider the total net returns to the public investment,” declared authors Sean McAlinden and Debra Maranger Menk, in the study, “The Effect on the U.S. Economy of the Successful Restructuring of General Motors,” released today by the Ann Arbor, Michigan-based Center for Automotive Research, or CAR.