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| What car wreck? This is the "New" GM |
Do the math ...
I've attached a link to a USA Today article that has the following last paragraph:
"This will bring the four-year total of investments in our U.S. plants to more than $10 billion," Outgoing GM CEO Dan Akerson said. He said about 7,500 people already work in those five plants and today's announcements will create or retain more than 1,100 jobs.
OK - let's do the math.
7,500 current jobs + 1,100 retained (how does that differ from current?) and created jobs = 8,600 jobs.
"more" (could be a lot more) than $10,000,000,000 spent on improvements that resulted in these retentions or new jobs.
So, that's $10,000,000,000 invested that resulted in 8,600 jobs (assuming absolutely 0 would have been saved if we didn't just piss away $10 billion). So, for each $1,162,790 invested, we gained one whole job! Now this is the kind of forward looking leadership that will turn this economy around! By the way, let's don't forget that the "invested" money was a gift from the US Government (translated: our money) that will NEVER be repaid. This is enough to warm the cockles of any UAW thug's heart. And, just think of the tax revenue all of these jobs will generate. Let's see ... how about a mean salary level of $100,000 (probably high, but hey, just like the government, I'm feeling generous with my numbers). Let's figure in all taxes (federal, state, local, sales) these folks pay - 50% or $50,000 (maybe not so generous ... probably a little low). At that rate, the taxpayer will recoup their investment in just over 23 years ... well, not quite, because if we INVESTED the money in something that actually generated a profit, it would be worth a lot more in 23 years. Also, let's don't adjust for that pesky little detail called 'inflation". By the way, if we just fired these folks and gave them each $1,000,000, we'd only be out $8,600,000,000 and we would have gotten at least 1/2 of that back immediately in taxes, but then I'm sure we would not realize all of the benefits we gained from what are undoubtedly huge infrastructure improvements ... Meanwhile, Toyota, Nissan, Ford, etc. continue to compete, reinvest in physical plant, create jobs and turn a profit without any Bush or Obama (aka: taxpayer) subsidies.
The best part is that this "Captain of Industry" is actually bragging about this circus act! Really, what an idiot ... but then again, he's smiling all the way to the bank.
The entire article provides an insightful view into the benefits of having government involved in business, including direct access to interest AND principal free loans. Incidentally, those of you still interested in purchasing shares of that bridge I own in Brooklyn, please contact me. No? How about a Chevy VOLT?
http://www.usatoday.com/story/money/cars/2013/12/16/general-motors-gm-bailout-repayment/4043607/
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