When the U.S. government first acquired Amtrak 30 years ago, it cost $30 million (that’s an M, not a B) and government promised to turn it around in a few years.
In the 30 years since our government’s takeover, Amtrak has never turned a profit. It has actually cost taxpayers $40 billions and counting in subsidies.
I hope we don’t get that kind of return on the government’s investment of $30 billion (with a B) in GM. If we get the same kind of return on GM that we got on Amtrak, taxpayers will be subsidizing GM to the tune of trillions of dollars (with a T).
The U.S government is spending approximately $300,000 per GM and Chrysler employee to bail them out. It would be far less expensive to make a $150,000 donation to each employee for moving expenses, training and unemployment and save the taxpayer $150,000 per employee.
The average United Auto Worker makes approximately $54,000 annually, and our government is subsidizing nearly six years of compensation per employee. There are definitely more appropriate and cost-cutting measures to subsidize the unemployed.
Please be prepared for tax and regulatory incentives to encourage U.S. consumers to buy GM/Chrysler vehicles. The 535 members of Congress sitting on Capitol Hill and those exclusive members of the West Wing will need to pass laws justifying their $50 billion investment at our expense.
Are you scared yet? That sound you’re hearing is another massive financial train about to derail.
Visit www.armstrongwilliams.com .