how about pulling whatever $ we are squandering in Iraq and spending 1/10 of it to save the US is that Ok with you
Landis, clearly you are not thinking and posting straight when you make a statement like this: " GM generates $50-$60 BILLION in tax revenue to the federal government, not too mention the fact that they employ 3 MILLION people in this country." If you want people on this board to believe and respect your arguments, then get the FACTS right. Fact: GM employs 263,000 people. Fact: GM's Income Tax Expense 37,162,000 (2,785,000) (5,878,000 (in thousands) for tax year 2007, 2006, 2005 Perhaps you meant or were thinking that the whole "US Auto Industry", (GM, F, Chrsyler,and all Auto Suppliers) employ 3 million people and generate $50 billion in Tax revenue. Is that what you meant to say? If that is indeed correct, why not say it the first time, instead of continuing to make the same wrong arguments!!!!!
It's about 5-6 million jobs total. You need to take the supply chain into account - all the engineering suppliers, shops, etc.
Some GM suppliers also supply Toyota with parts. I'm sure not all parts suppliers will go out of business. I just don't see how bailing out GM makes sense. High probability they will go out of business in the near future anyway. U.S. auto manufacturers knew in 1979 when Chrysler had problems that fuel costs were going to be an issue. Over twenty years to come up with a solution and they failed. The Volt will not save GM.
Another one that pull numbers out randomly without fact. 1) As UFC said, GM employ about 250,000 people. So, 2.5mil likely include supply chain already. 2) If US population decide to buy 11mil car per year instead of 17mil car per year. You can't have a structure that support 17mil production and make money in a 11mil environment. 3) Mech shops keep vehicles on the road. Although people decide to change car less often, they still need to service their car. So, mech shop, tire shop, autozone business likely won't be affected that much.
That's becuase I figured people knew how to use the Interwebs: "The U.S. auto industry represents almost four percent of U.S. gross domestic product and represents ten percent of U.S. industrial production by value. One out of every 10 U.S. jobs is auto-related. General Motors, Ford and Chrysler account for roughly 70 percent of U.S. auto production and are estimated to support around five million jobs across all 50 states. According to a report released last week by the Center for Automotive Research, the failure of even one US automaker would mean the loss of millions of jobs and cost our economy hundreds of billions of dollars." http://elections.foxnews.com/2008/1...egation-paulson-requesting-auto-industry-aid/ Total jobs is around 146 Million: http://www.bls.gov/news.release/empsit.nr0.htm so that's ~14.6 million jobs related to the auto industry. I think ~30% vaporizing if the US auto industry takes a dump is a pragmatic number, and you have your ~5 million number I stated above.
I thought this was suppose to be a bridge loan, not a bail out? From what I have read in the Detroit papers it is not a bail out that GM is after, it is a bridge loan. Why are we calling this a bail out. I remember Chrysler when I was a kid and the government loaned them the money to help them through hard times. With the economy hurting, I can't see another 2.5 million standing in the unemployment lines. Also, how many of these 2.5 million will default on their mortgages if they are fired?